1

 Annual Report Annual Report

on the 

Economic Economic 

Impact 

of the 

Federal Historic Federal Historic 

Tax Credit for Tax Credit for 

FY 2015

NaƟ onal Park Service 

U.S. Department of the Interior

Technical PreservaƟ on Services

Edward J. Bloustein School

of Planning and Public Policy
Cover photo: The Hill Building, Durham, North Carolina, photo by GLINTstudios courtesy of 21c Museum Hotels

This execuƟ ve summary is based on the fi ndings of a NaƟ onal Park Service-funded annual study undertaken through a 

cooperaƟ ve agreement with Rutgers University. The University is responsible for the content of the study.

Center for Urban Policy Research

Edward J. Bloustein School of Planning and Public Policy

Rutgers, The State University of New Jersey

New Brunswick, NJ 08901

Technical PreservaƟ on Services

NaƟ onal Park Service

U.S. Department of the Interior

Washington, DC 20240

The NaƟ onal Trust for Historic PreservaƟ on provided assistance in the preparaƟ on of the two case studies.

August 2016
ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2015

1

A Message from the NaƟ onal Park Service

Beyond the NaƟ onal Park System, the NaƟ onal Park Service through its Cultural Resources, Partnerships, and 

Science Programs is part of a naƟ onal preservaƟ on partnership working to promote the preservaƟ on of historic 

resources in communiƟ es small and large throughout the country. For the past 38 years, the NaƟ onal Park Service, in partnership with the State Historic PreservaƟ on Offi ces, has administered the Federal Historic PreservaƟ on Tax IncenƟ ves Program. 

Commonly referred to as the Federal Historic Tax Credit (HTC), the HTC is designed to not only preserve and 

rehabilitate historic buildings, but to also promote the economic revitalizaƟ on of older communiƟ es in the naƟ on’s ciƟ es and towns, along Main Streets, and in rural areas. Targeted to income-producing buildings, the HTC 

program is the largest and most eff ecƟ ve Federal program specifi cally supporƟ ng historic preservaƟ on. Since 

the program’s incepƟ on in 1976, the NaƟ onal Park Service has cerƟfi ed the rehabilitaƟ on of more than 41,254 

historic properƟ es throughout the United States. 

In Fiscal Year (FY) 2015, 870 completed historic rehabilitaƟ on projects were cerƟfi ed by the NaƟ onal Park 

Service, represenƟ ng $4.47 billion in esƟ mated rehabilitaƟ on costs that qualify for a 20% Federal tax credit. 

(Another 1,283 proposed projects were also approved in FY 2015.) Many of these projects involved buildings 

that were abandoned or underuƟ lized, and in need of substanƟ al rehabilitaƟ on to return them to, or for their 

conƟ nued, economic viability. The HTC program also is an important tool in helping to revitalize older, economically depressed communiƟ es. Based on project data provided by the NaƟ onal Park Service, PolicyMap has 

determined that over 55% of the cerƟfi ed rehabilitaƟ on projects in FY 2015 were located in low and moderate 

income census tracks.

The NaƟonal Park Service issues annual reports on the HTC program quanƟ fying the number of historic rehabilitaƟ ons cerƟfi ed each year, their reported costs, and other staƟ sƟ cal informaƟ on on the program. The annual 

and staƟ sƟ cal reports are available on the NaƟ onal Park Service’s Technical PreservaƟ on Services (TPS) website 

at hƩ p://www.nps.gov/tps/tax-incenƟ ves.htm, along with informaƟ on on the HTC program in general.

For FY 2015, the NaƟ onal Park Service also turned to the Rutgers University Center for Urban Policy Research, 

through a cooperaƟ ve agreement, to undertake and report on the economic impacts of the HTC for the fi scal 

year ending September 30, 2015. This report highlights its main fi ndings. An economic model originally developed by the Center under a series of grants from the NaƟ onal Park Service was uƟ lized in the preparaƟ on of 

this report. The economic model was uƟ lized by the Center for their six prior reports on the Federal HTC, as 

well as for a number of other economic reports for state governments and others. 

As the Center’s report idenƟfi es, the level and breadth of economic impacts resulƟ ng from the Federal HTCs in 

FY 2015 are quite impressive. In addiƟ on, the report includes informaƟ on on the cumulaƟ ve economic impact of the Federal Historic PreservaƟ on Tax IncenƟ ves Program for the past 38 years, starƟ ng in 1977-78 with 

the fi rst completed rehabilitaƟ on project to be cerƟfi ed by the NaƟ onal Park Service under the program. The 

program remains one of the Federal government’s most successful and cost-eff ecƟ ve community revitalizaƟ on 

programs. 

Technical PreservaƟ on Services
ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2015

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1 The HTC has a mulƟ step applicaƟ on process, encompassing Part 1 (evaluaƟ on of the historic signifi cance of the property), Part 2 (descripƟ on of the proposed rehabilitaƟ on work), and Part 3 (request for cerƟfi caƟ on of completed work). Both Part 2 and Part 3 rehabilitaƟ on staƟ sƟ cs include only esƟ mated 

costs considered “eligible” or “qualifi ed” for the tax credit under the Internal Revenue Code (Qualifi ed RehabilitaƟ on Expenditures, or QREs), as opposed 

to “ineligible” or “nonqualifi ed” costs. While the ineligible/nonqualifi ed expenses do not count for tax credit purposes, they are a component of the total 

rehabilitaƟ on investment or cost borne by the HTC developer. In pracƟ cal terms, the total rehabilitaƟ on investment, including ineligible/nonqualifi ed 

costs, helps pump-prime the economy. For example, in FY 2015, the esƟ mated investment for Part 3 cerƟfi ed projects amounted to about $4.5 billion, 

while the total rehabilitaƟ on outlay associated with the HTC was an esƟ mated $5 billion.

The results of the PEIM include many fi elds of data. The fi elds most relevant to this study are the following:

• JOBS: Employment, both part- and full-Ɵ me, by place of work, esƟ mated using the typical job characterisƟ cs of each industry.

• INCOME: “Earned” or labor income; specifi cally, wages, salaries, and proprietor income.

• WEALTH: Value-added—the sub-naƟ onal equivalent of gross domesƟ c product (GDP). At the state level, 

this is called gross state product (GSP).

• OUTPUT: The value of shipments, as reported in the Economic Census.

• TAXES: Tax revenues generated by the acƟ vity, which include taxes to the federal government and to state 

and local governments.

 Annual Report on the Economic Impact of the Federal Historic 

Overview of the Rutgers Economic Analysis

The federal historic tax credit (HTC) is a federal income tax credit that promotes the rehabilitaƟ on of incomeproducing historic properƟ es. This study examines the economic impacts of the HTC (currently at 20 percent) 

by analyzing the economic consequences of the project it supports. This analyses focuses on the economic 

eff ects of these projects during construcƟ on, quanƟ fying the total economic impacts (i.e., direct as well as mulƟ plier, or secondary, economic consequences) for the fi scal year ending September 30, 2015, and for the period 

since the program’s incepƟ on. The study uƟ lizes the PreservaƟ on Economic Impact Model (PEIM), a comprehensive economic model developed by Rutgers University for the NaƟ onal Park Service. 

The current analysis applies the PEIM to both cumulaƟ ve (FY 1978 through FY 2015) HTC-related historic rehabilitaƟ on investment (about $120.8 billion in infl aƟ on-adjusted 2015 dollars) and single-year (FY 2015) HTCrelated rehabilitaƟ on investment (about $5.0 billion). It considers the eff ects of the cumulaƟ ve $120.8 billion 

rehabilitaƟ on investment as if it applied to one year (2015), rather than backdaƟ ng the PEIM for each of the 

38 years in the study period. It also considers the full rehabilitaƟ on investment associated with the HTC (e.g., 

$5.0 billion in FY 2015), and not the somewhat lower amount reported by the NaƟ onal Park Service based on 

esƟ mated qualifi ed rehabilitaƟ on costs indicated by property owners requesƟ ng cerƟfi caƟ on of rehabilitaƟ on 

for purposes of the tax credit (e.g., $4.5 billion in FY 2015). 1

Tax Credit for FY 2015: ExecuƟ ve Summary
ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2015

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The following table summarizes the impacts of the HTC in infl aƟ on-adjusted 2015 dollars for each of these 

economic measures for the cumulaƟ ve period FY 1978-2015 and for FY 2015. 

The benefi ts of investment in HTC-related historic rehabilitaƟ on projects are extensive, increasing payrolls 

and producƟ on in nearly all sectors of the naƟ on’s economy. The cumulaƟ ve eff ects for the period of FY 1978 

through FY 2015 are illustraƟ ve. During that period, $120.8 billion in HTC-related rehabilitaƟ on investment 

created 2,361,000 jobs and $134.7 billion in GDP, about 29 percent of which (691,000 jobs and $38.9 billion in 

GDP) was in the construcƟ on sector. This is as one would expect, given the share of such projects that require 

the employment of building contractors and trades. Other major benefi ciaries were the service sector (435,000 

jobs, $17.8 billion in GDP), the manufacturing sector (487,000 jobs, $35.0 billion in GDP), and the retail trade 

sector (350,000 jobs, $9.9 billion in GDP). As a result of both direct and mulƟ plier eff ects, and due to the interconnectedness of the naƟ onal economy, sectors not immediately associated with historic rehabilitaƟ on, such as 

agriculture, mining, transportaƟ on, and public uƟ liƟ es, benefi t as well. (Summary Exhibit 1). 

NaƟ onal Economic Impacts

Federal HTC-assisted RehabilitaƟ on

$120.8 billion CUMULATIVE (FY 1978-2015)2 

historic rehabilitaƟ on expenditures 

(adjusted for infl aƟ on) result in:

$5 billion ANNUAL FY 2015 

historic expenditures results in:

Jobs (person-years, in thousands ) 2,361.0 86.0

Income ($ billion) 99.1 3.5

Output ($ billion) 271.7 9.4

GDP ($ billion) 134.7 4.8

Taxes ($ billion) 39.0 1.3

 Federal ($ billion) 28.1 0.8

 State ($ billion) 5.4 0.2

 Local ($ billion) 5.4 0.2

2 Changes in the offi cial annual reported rates of infl aƟ on caused the Rutgers research team to make various changes in the calculaƟ ons concerning the economic impacts of the historic tax credit (HTC) over Ɵ me. The changes are parƟ cularly notable over the past few years when job counts 

ensuing from the HTC had to be adjusted.
ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2015

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The HTC NaƟ onal Economic Impacts

HTC-related historic rehabilitaƟ on benefi ts state economies as well as the naƟ onal economy. For example, in 

New York State in FY 2015, federal HTC-related rehabilitaƟ on acƟ vity totaled about $604 million. The naƟ onal 

impacts of that investment included 9,996 jobs, an addiƟ onal $1,137 million in output, $431 million in income, 

$575 million in GDP, $104 million in federal taxes, and $176 million in total taxes. In New York alone, the same 

$604 million in HTC-related spending resulted in 5,710 jobs, $604 million in output, $268 million in income, 

$331 million in gross state product (GSP), and $97 million in total taxes. Most of the HTC projects were in upstate New York.

HTC Impacts Compared with Those of NonpreservaƟ on Investments and Housing ContribuƟ ons

How does HTC-related historic rehabilitaƟ on perform as an economic pump-primer compared with other, nonpreservaƟ on investments? In short, quite well.

Numerous studies conducted by Rutgers University have shown that in many parts of the country, a $1 million 

investment in historic rehabilitaƟ on yields markedly beƩ er eff ects on employment, income, GSP, and state and 

local taxes than an equal investment in new construcƟ on or many other economic acƟ viƟ es (e.g., manufacturing or services). These fi ndings demonstrate that historic rehabilitaƟ on, combined holisƟ cally with the many 

acƟ viƟ es of the broader economy, delivers a commendably strong “bang for the buck.” 

About half of all HTC transacƟ ons include housing. OŌ en used in combinaƟ on with programs such as the Low 

Income Housing Tax Credit (LIHTC), the HTC has produced powerful and very benefi cial results in this area. 

From FY 1978 through FY 2015, the HTC has been involved in the creaƟ on of a reported 527,866 housing units. 

Of that 527,866 total, 264,602, or 50.1 percent, were exisƟ ng housing units that were rehabilitated; 263,264 

or 49.9 percent, were newly creaƟ ng housing units (e.g., housing resulƟ ng from the adapƟ ve reuse of commercial space). In addiƟ on, 146,074, or 27.6 percent of the total housing units, produced (527,866), were aff ordable to low- and/or moderate income (LMI) families. In FY 2015, of the 23,569 units created (rehab and other) 

produced under the federal HTC, 8,096 (34 percent ) were LMI units. The federal HTC’s infl uence on housing, 

largely invisible to the general public, deserves much greater aƩ enƟ on, given its producƟ on of housing in general and LMI housing units in parƟ cular.

The most recent economic benefi ts of the federal HTC are also most impressive. In FY 2015, HTC-related investments generated approximately 86,000 jobs, including 29,000 in construcƟ on and 19,000 in manufacturing, 

and were responsible for $4.8 billion in GDP, including $1.6 billion in construcƟ on and $1.3 billion in manufacturing. HTC-related acƟ vity in FY 2015 generated $3.5 billion in income, with construcƟ on ($1.3 billion) and 

manufacturing ($823 million) reaping major shares. (See Summary Exhibit 2 for more details.) These benefi ts 

were especially welcome in 2015, as the naƟ on conƟ nued its economic recovery.
ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2015

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3 See footnote 1.

4 These esƟ mates are based on full uƟ lizaƟ on of the credits in cases of cerƟfi ed rehabilitaƟ ons. For various reasons, not all completed projects cerƟfi ed 

by the NaƟ onal Park Service may ulƟ mately uƟ lize the credit. Their economic impact, nevertheless, remains. 5 See footnote 2.

The Cost of the HTC

The HTC is a tax expenditure and has a public cost. In the simplest terms, the federal cost of the HTC is equal 

to the credit percent (20 percent since 1986) applied to the Part 3 (“qualifi ed for tax credit”) esƟ mated investment.3

 Applying that calculaƟ on, the federal HTC costs the U.S. Treasury approximately $23.0 billion (in 

infl aƟ on-adjusted 2015 dollars) over the period of FY 1978 through FY 2015, while the cost for projects cerƟ -

fi ed by the NaƟ onal Park Service in FY 2015 alone was about $895 million.4

 Weighing against these costs are 

the signifi cant economic impacts (i.e., jobs, income, GDP, and output) and tax revenue (federal, state, and local) 

generated by HTC-aided rehabilitaƟ ons and documented in this study. An important fi nding is that the HTC 

yields a net benefi t to the U.S. Treasury, generaƟ ng $28.1 billion in federal tax receipts over the life of the program, compared with $23.1 billion in credits allocated.

Summary of HTC Impacts

In short, the federal HTC is a good investment for local communiƟ es, individual states, and the naƟ on. The 

cumulaƟ ve impacts of the program to date (FY 1978 through FY 2015) support this conclusion.5

• An infl aƟ on-adjusted (2015 dollars) $23.1 billion in HTC costs encouraged a fi ve Ɵ mes greater amount of 

 historic rehabilitaƟ on ($120.8 billion).

• This rehabilitaƟ on investment generated about 2.4 million new jobs and billions of dollars in total 

 (direct and secondary) economic gains.

• The cumulaƟ ve posiƟ ve impacts on the naƟ onal economy included $271.7 billion in output, $134.7 

 billion in GDP, $99.1 billion in income, and $39.0 billion in taxes, including $28.1 billion in federal tax 

 receipts.

• The leverage and mulƟ plier eff ects noted above support the argument that the federal HTC is a strate- 

 gic investment that works.

The tables on the following two pages summarize the impacts of the HTC in infl aƟ on-adjusted 2015 dollars for 

each of the economic measures for the cummulaƟ ve period of FY1978-2015 and for FY 2015.
ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2015

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SUMMARY EXHIBIT 1

National Economic and Tax Impacts of Federal HTCͲrelated Activity

FY 1978 through FY 2015 (HTC Investment: $120.8 billion)

645

17,813

16,731

9,864

4,744

7,680

34,992

38,872

2,152

764

423

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Government

Services

Finance, Ins., & Real Estate

Retail Trade

Wholesale

Transport. & Public Utilities

Manufacturing

Construction

Mining

Agri. Serv., Forestry, & Fish

Agriculture

(millions of 2015 $)

Gross Domestic Product by Sector from Federal Historic Preservation Investment

($134,682 million cumulative, FY 1978Ͳ2015)

412

17,397

9,617

6,243

4,535

4,540

22,582

31,862

1,226

479

191

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Government

Services

Finance, Ins., & Real Estate

Retail Trade

Wholesale

Transport. & Public Utilities

Manufacturing

Construction

Mining

Agri. Serv., Forestry, & Fish

Agriculture

(millions of 2015 $)

Income Created by Sector from Federal Historic Preservation Investment

($99,086 million cumulative, FY 1978Ͳ2015)

10,303

434,955

173,640

350,079

82,002

91,608

486,675

690,838

19,061

13,428

7,984

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000

Government

Services

Finance, Ins., & Real Estate

Retail Trade

Wholesale

Transport. & Public Utilities

Manufacturing

Construction

Mining

Agri. Serv., Forestry, & Fish

Agriculture

(jobs)

Jobs Created by Sector from Federal Historic Preservation Investment

(2,360,572 jobs cumulative, FY 1978Ͳ2015)
ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2015

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SUMMARY EXHIBIT 2

National Economic and Tax Impacts of Federal HTCͲrelated Activity

FY 2015 (HTC Investment: $5.0 billion)

20

639

392

296

166

250

1,345

1,563

68

27

14

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800

Government

Services

Finance, Ins., & Real Estate

Retail Trade

Wholesale

Transport. & Public Utilities

Manufacturing

Construction

Mining

Agri. Serv., Forestry, & Fish

Agriculture

(millions of 2015 $)

Gross Domestic Product by Sector from Federal Historic Preservation Investment

($4,781 million, FY 2015)

13

633

220

189

157

135

823

1,294

39

15

5

0 200 400 600 800 1,000 1,200 1,400

Government

Services

Finance, Ins., & Real Estate

Retail Trade

Wholesale

Transport. & Public Utilities

Manufacturing

Construction

Mining

Agri. Serv., Forestry, & Fish

Agriculture

(millions of 2015 $)

Income Created by Sector from Federal Historic Preservation Investment

($3,522 million, FY 2015)

293

17,238

3,376

9,816

2,751

3,194

18,635

29,412

733

391

218

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000

Government

Services

Finance, Ins., & Real Estate

Retail Trade

Wholesale

Transport. & Public Utilities

Manufacturing

Construction

Mining

Agri. Serv., Forestry, & Fish

Agriculture

(jobs)

Jobs Created by Sector from Federal Historic Preservation Investment

(86,058 jobs, FY 2015)
ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2015

8

Sources: Department of the Interior, NaƟ onal Park Service, Technical PreservaƟ on Services; NaƟ onal Council of State Historic PreservaƟ on Offi ces; 

 and calculaƟ ons by Rutgers University

NaƟ onal Economic and Tax Impacts of Federal HTC-related Investment by State, Fiscal Year 2015

Income GDP Output Local State Federal Total

Alabama $22.0 407 $14.0 $26.3 $36.1 $391 $582 $3,359 $4,331

Alaska $0.0 0 $0.0 $0.0 $0.0 $0 $0 $0 $0

Arizona $2.2 38 $1.3 $1.7 $4.3 $2,104 $1,359 $371 $3,834

Arkansas $12.5 260 $8.7 $13.0 $23.2 $249 $454 $2,100 $2,803

California $231.9 3,459 $168.1 $219.5 $453.7 $5,851 $9,356 $42,595 $57,802

Colorado $79.2 5,078 $55.8 $77.4 $149.0 $2,015 $2,567 $13,190 $17,772

Connecticut $106.3 1,522 $74.0 $102.9 $194.5 $5,599 $4,747 $17,040 $27,386

Delaware $0.4 7 $0.3 $0.4 $0.8 $20 $21 $69 $111

Dist of Columbia $28.7 417 $19.3 $26.2 $50.5 $1,929 $774 $3,920 $6,622

Florida $52.2 911 $36.9 $50.0 $97.8 $2,701 $1,633 $8,813 $13,147

Georgia $46.3 915 $32.2 $47.3 $84.8 $2,186 $2,122 $7,839 $12,147

Hawaii $0.0 0 $0.0 $0.0 $0.0 $0 $0 $0 $0

Idaho $0.0 0 $0.0 $0.0 $0.0 $0 $0 $0 $0

Illinois $210.1 3,097 $152.9 $197.4 $410.3 $6,657 $6,043 $36,793 $49,494

Indiana $95.6 1,676 $68.3 $92.0 $182.5 $31,506 $20,993 $16,252 $68,751

Iowa $114.2 2,064 $77.3 $115.4 $200.9 $3,824 $3,402 $17,912 $25,138

Kansas $36.5 662 $25.5 $35.3 $67.5 $8,594 $5,979 $5,860 $20,433

Kentucky $38.4 736 $26.6 $37.6 $70.4 $3,844 $3,061 $6,126 $13,031

Louisiana $265.1 4,684 $189.0 $247.6 $502.2 $9,249 $9,635 $43,494 $62,379

Maine $55.3 838 $32.5 $48.8 $105.9 $2,508 $2,331 $8,754 $13,593

Maryland $54.5 842 $38.3 $51.4 $101.1 $1,768 $1,600 $8,724 $12,092

Massachusetts $306.1 3,978 $214.8 $288.2 $570.1 $8,168 $9,855 $49,412 $67,434

Michigan $295.7 4,698 $209.5 $280.6 $557.8 $8,764 $10,658 $48,843 $68,265

Minnesota $233.1 3,670 $163.6 $220.4 $435.2 $8,184 $9,259 $37,584 $55,027

Mississippi $21.3 443 $14.8 $21.0 $39.2 $1,609 $1,282 $3,441 $6,331

Missouri $211.4 3,622 $150.8 $199.7 $401.9 $5,839 $6,679 $35,013 $47,531

Montana $0.3 7 $0.2 $0.3 $0.6 $13 $12 $53 $77

Nebraska $44.8 858 $30.6 $44.3 $80.1 $9,249 $6,320 $6,930 $22,499

Nevada $0.0 0 $0.0 $0.0 $0.0 $0 $0 $0 $0

New Hampshire $17.9 275 $12.5 $17.4 $33.2 $700 $249 $2,858 $3,807

New Jersey $33.0 474 $23.4 $30.8 $62.7 $648 $976 $5,403 $7,027

New Mexico $6.2 119 $4.4 $6.0 $11.7 $266 $263 $1,016 $1,544

New York $604.3 9,996 $430.6 $575.1 $1,137.1 $39,159 $33,178 $103,871 $176,207

North Carolina $144.5 2,707 $101.8 $144.8 $270.7 $3,494 $5,053 $24,722 $33,269

North Dakota $11.9 210 $8.3 $11.0 $21.9 $403 $313 $1,756 $2,473

Ohio $439.5 7,895 $313.0 $433.0 $834.6 $19,082 $16,078 $76,227 $111,387

Oklahoma $80.0 1,577 $57.0 $79.9 $152.7 $1,925 $2,780 $13,721 $18,427

Oregon $59.7 1,056 $43.3 $56.8 $116.2 $1,553 $2,093 $10,409 $14,054

Pennsylvania $277.2 4,506 $201.2 $266.8 $540.5 $9,240 $7,836 $48,807 $65,883

Rhode Island $79.0 1,205 $53.9 $80.9 $142.1 $2,857 $2,498 $12,340 $17,694

South Carolina $29.6 552 $20.5 $30.0 $54.0 $847 $949 $4,914 $6,709

South Dakota $3.9 78 $2.7 $3.5 $7.2 $125 $73 $583 $781

Tennesse $34.4 608 $24.1 $33.3 $64.1 $970 $736 $5,605 $7,312

Texas $35.0 566 $25.4 $33.2 $68.6 $1,210 $695 $6,251 $8,156

Utah $0.9 17 $0.6 $0.9 $1.7 $24 $30 $149 $203

Vermont $42.1 746 $30.4 $39.9 $80.7 $1,645 $2,073 $6,844 $10,563

Virginia $434.9 7,319 $311.2 $420.6 $828.6 $11,268 $14,606 $74,475 $100,350

Washington $22.6 362 $16.2 $21.9 $43.4 $1,043 $816 $3,898 $5,757

West Virginia $7.5 144 $5.2 $7.5 $13.7 $228 $263 $1,206 $1,696

Wisconsin $43.6 760 $30.9 $42.5 $82.0 $1,540 $1,758 $7,363 $10,661

Wyoming $0.0 0 $0.0 $0.0 $0.0 $0 $0 $0 $0

Totals $4,971.8 86,058 $3,522.1 $4,780.6 $9,387.9 $231,047 $214,039 $836,906 $1,281,992

State

Total Rehabilitation

Costs (in 2015

$ millions)

National Economic Impacts Tax Impacts

Employment

(jobs)

(in 2015 $ millions) (in 2015 $ thousands)
ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2015

9

Project Profi le

Historic Name: Hill Building

Current Name: 21c Durham Museum 

 Hotel

Original ConstrucƟ on Year: 1937

RehabilitaƟ on Years: 2014-2015

Original Use: Locally-owned bank and insurance offi ces

New Use: 125-room hotel, meeƟ ng space and art museum 

EsƟ mated Total Project Cost: $48 million

Federal Historic Tax Credit 

 (HTC) Equity: $7,900,000

State HTC Equity: $3,500,000

The Hill Building

Durham, North Carolina

CASE STUDY #1

21c Durham Museum Hotel and Its Downtown RevitalizaƟ on Context

21c Durham Museum Hotel challenges the convenƟ ons of both the tradiƟ onal museum and hospitality worlds. 

It is located in the heart of downtown Durham in the iconic Hill Building. Laura Lee Brown and Steve Wilson 

founded 21c Museum Hotels on the belief that art enhances life, and should be accessible to all. By combining hospitality and art museum experiences at their hotels, the 21c Hotels group hopes to achieve this goal to 

integrate art into more peoples’ daily lives. 

Designed by noted architects Shreve, Lamb & Harmon (designers of the Empire State Building), the 17-story Art 

Deco Hill Building was completed in 1937. Largely vacant since 2006, the hotel opened in March 2015. The 

Photos for this case study were provided by GLINTstudios courtesy of 21c Museum Hotels.
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hotel features a contemporary art museum showcasing the work of living arƟ sts through rotaƟ ng curated exhibiƟ ons. One hundred and twenty-fi ve guest rooms and suites provide accommodaƟ ons with a disƟ nctly residenƟ al 

feel. There are over 10,000 square feet of meeƟ ng and conference space.

Open free to the public, 21c’s galleries double as revenue-generaƟ ng event space, with contemporary art 

providing a dynamic backdrop for gatherings from board 

meeƟ ngs to wedding recepƟ ons. The museum also produces its own cultural programming, arƟ st lectures, fi lm 

screenings, and drawing classes. 

Scope of RehabilitaƟ on

The Hill Building’s exterior remained largely unchanged, 

with historic windows repaired and limestone gently 

cleaned. Modest canopies and signage were introduced 

on the ground-fl oor level to serve the hotel and restaurant. Upper-story terraces were opened for use by hotel 

guests. 

Signifi cant interior spaces such as the historic banking 

lobby, bank vault area, and fi rst-fl oor elevator lobby were 

retained in the rehabilitaƟ on. The lobby is being reused 

as the hotel ballroom. Historic walls, column paneling 

and marble bases were retained and repaired, and existing terrazzo fl oors was reground and polished. The bank vault now serves as a small meeƟ ng and lounge space.

Areas that had previously undergone change and certain secondary spaces were adapted to serve the hotel, museum, and restaurant uses, with contemporary and compaƟ ble fi nishes introduced. The building’s HVAC, electrical, and plumbing systems were updated, and sprinklers were added throughout. 

The Role of the Historic Tax Credit

A bank loan of $22 million covered only 46% of the $48-million development cost. This is not unusual for a highrisk transacƟ on located in an economically depressed area. The 21c Hotel group was able to parƟ ally close the 

$26-million fi nancing gap by making a substanƟ al out of pocket equity contribuƟ on of $10.8 million. It closed the 

balance of the gap through the applicaƟ on of $7.9 million in federal and $3.5 million in North Carolina historic 

tax credits proceeds respecƟ vely. The project also qualifi ed for $3.8 million in New Markets Tax Credits. 

21c Economic Impact on the City of Durham

The developer’s $48 million investment has revitalized an important historic building and a real estate asset in 

the heart of the central business district. The City is using historic rehabilitaƟ on as a key strategy to spark a renaissance of its central business district (CBD). The city’s focus on downtown revitalizaƟ on has generated nearly 

Project Budget

Sources of Funds Amount

Bank Loan $22,000,000

Federal HTC Equity $7,900,000

State HTC Equity $3,500,000

New Markets Tax Credits $3,800,000

Developer Equity $10,800,000 

Total $48,000,000

Uses of Funds Amount

AcquisiƟ on Costs $8,550,000

Hard Costs $34,120,000

SoŌ Costs $5,150,000

Reserves $2,030,000

Total $49,850,000
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Community Benefi ts

Permanent Jobs: 140

ConstrucƟ on Jobs: 354

State & Local Taxes: $2,360,500

Business and Household 

 Income Generated: $49,244,200

First and Green Building

CASE STUDY #2

Project Profi le

Historic Name: Doaks Hardware

Current Name: First and Green 

 Building

Original ConstrucƟ on Year: 1867

RehabilitaƟ on Year: 2014-2015

Original Use: Hardware Store

New Use: Event Space

Total Project Cost: $2,000,000 

Federal Historic Tax Credit 

 (HTC) Equity: $400,000

State HTC Equity: $500,000

Grenada, Mississippi

$1 billion in public and private investment, creaƟ ng over 

5,000 jobs and increasing the CBD tax base by 238%.

To assure that low-income persons benefi ted from the 

construcƟ on and permanent jobs generated by the project, 

21c partnered with the NC Works Career Center, Housing 

for New Hope, which provides services for the homeless, 

and El Centro Hispano, which off ers employment services 

to local Hispanic families. The hotel project created over 

140 permanent new jobs, most of which are accessible to 

individuals without higher educaƟ on degrees. 

Property and Project Details

The historic rehabilitaƟ on of the First and Green Building in Grenada, Mississippi, is part of a remarkable eff ort 

to re-imagine its downtown and build Grenada County’s economic future. Grenada was founded as an early 
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19th-century market town for trading and shipping coƩ on. Located on the Yalobusha River, a tributary of the 

Mississippi, and on the Illinois Central & Gulf Railroad, the town was ideally suited for the transshipment of 

coƩ on to texƟ le mills in the US and abroad. Today, Grenada is a manufacturing center with 32% of its workers 

engaged in the making of automobile parts, aerospace equipment, plasƟ cs, and the processing of food. 

The First and Green property was originally built in 1867 and operated as Doak’s Hardware. Its retail services 

were oriented to local coƩ on planters rebuilding aŌ er the end of the Civil War. Ownership changed hands during another war-related construcƟ on boom in the early 1940s, but the building’s original use was retained and 

it was renamed Grenada Hardware. Current owner Deborah Midanek Bailey, a transplanted New Yorker, has become a leader in the movement to use the city’s rich heritage to repurpose and revitalize downtown Grenada. 

The Scope of RehabilitaƟ on

First and Green is a contribuƟ ng property in the Grenada Downtown Historic District, listed in the NaƟ onal Register of Historic Places. Using her reƟ rement savings, Deborah Bailey bought the former hardware store in 2013, 

along with 10 other nearby buildings, and converted the two-story brick building, located at First and Green 

Streets, into an event space on the fi rst fl oor and three new apartments above. 

At the Ɵ me of purchase, the property was in serious need of rehabilitaƟ on. HeaƟ ng, cooling, plumbing, and 

electrical systems were in a shambles and leaks were rampant. The fl oor was roƩ en and termite-ridden. Piers 

supporƟ ng center structural posts were deteriorated, and the building was in serious danger of caving in. RehabilitaƟ on work included replacing deteriorated piers and creaƟ ng a concrete layer to control moisture below a 

new wood fl oor. Walls were repaired and re-plastered, windows rebuilt, and beaded-board ceilings on the fi rst 

fl oor were repaired. The owner restored a hand-cranked elevator, uncovered and repaired original ceiling fans, 

and uncovered original ladders on rails used to access hardware stored on upper shelves. Exterior brickwork 

was cleaned and repaired, and modern HVAC systems and lighƟ ng were installed. A new commercial kitchen 

to service social and corporate events was installed at the rear of the property. The rehabilitaƟ on resulted in a 

beauƟ ful and funcƟ onal event space that today houses a new, successful, locally owned business that is drawing hundreds of people every week into the once all-but-abandoned historic town square area. 

The Role of the Historic Tax Credit

The sources of fi nancing show that First and Green could never have been rehabilitated without the benefi t of 

the federal and state Historic Tax Credits (HTC). This $2-million project was able to obtain a bank loan of only 

$500,000, refl ecƟ ng the relaƟ ve high risk of a high-cost rehabilitaƟ on in a deteriorated downtown locaƟ on. The 

federal 20% HTC value totaled $400,000, and the 25% Mississippi State HTC provided an addiƟ onal $500,000. 

The owner made an out-of-pocket equity contribuƟ on of $600,000 to complete the sources of fi nancing.

The Downtown Grenada Redevelopment Plan

The First and Green Building is not an isolated historic property rehabilitaƟ on. It is part of a remarkable set 

of economic and social strategies aimed at a comprehensive revitalizaƟ on of the city and county. The vision 
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13

for downtown to aƩ ract arts and entertainment uses for 

the district’s small-scale buildings has led to new tenants, 

including the Grenada AŌ erglow Film FesƟ val, a small business incubator, a new law fi rm, a de novo banking operaƟ on, visual arƟ st workspaces and galleries, and a video 

game tournament center. 

The Grenada Community FoundaƟ on, founded by Deborah in 2009, has created the Grenada Downtown Historic 

District AssociaƟ on and the Grenada Farmers Market. It 

also established the Early Learning Advantage Center that 

provides resources, training, and technical assistance to 

professionals and parents working with early childhood 

development. 

Deborah was recently recognized by the Mississippi Heritage Trust for her signifi cant achievements and contribuƟ ons to the preservaƟ on of Mississippi’s heritage and preparaƟ on for her community’s future. She said, “First 

& Green has risen from the ashes of years of neglect and is serving now as a powerful catalyst for growth in 

Grenada’s Downtown Historic District. Other buildings are now being renovated, and residenƟ al and commercial tenants are on the way. This downtown renaissance could never have happened without the power of the 

historic tax credit.” 

Project Budget 

Sources of Funds Amount

Bank Loan $500,000

Federal HTC Equity $400,000

State HTC Equity $500,000

Developer Equity $600,000 

Total $2,000,000

Uses of Funds Amount

AcquisiƟ on Costs $80,000

ConstrucƟ on Costs $1,920,000

Total $2,000,000

Economic Benefi ts

Permanent Jobs: 6

ConstrucƟ on Jobs: 20

State & Local Taxes: $116,200

Business Income and 

 Salaries Generated: $1,933,500

All photos used in this case study were provided by First and 

Green LLC.
Edward J. Bloustein School of Planning and Public Policy

Rutgers, The State University of New Jersey

Civic Square Building

33 Livingston Avenue

New Brunswick, NJ 08901

848-932-5475

Web: policy.rutgers.edu

Email: ejb@policy.rutgers.edu

Technical PreservaƟ on Services

NaƟ onal Park Service

U.S. Department of the Interior

Washington, DC 20240

Web: hƩ ps://www.nps.gov/tps/