National Park Service

U.S. Department of the Interior

Technical Preservation Services

Annual Report on the Economic Impact of the 

Federal Historic Tax Credit for FY 2012
This report is based on the findings of a National Park Service funded study 

undertaken through a cooperative agreement with Rutgers University. The 

University is responsible for the content of the report

Center for Urban Policy Research

David Listokin, Michael L. Lahr, Charles Heydt 

Edward J. Bloustein School of Planning and Public Policy Rutgers, 

The State University of New Jersey New Brunswick, NJ 08901

Technical Preservation Services

National Park Service

U.S. Department of the Interior

Washington, DC 20240

The National Park Service and Rutgers University wish to thank John LeithTetrault and Anna Klosterman, National Trust for Historic Preservation, for their 

editorial and other assistance in the preparation of this report. 

Cover image - ASM International Headquarters; courtesy Jeff Goldberg

JULY 2013
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ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

A Message from the National Park Service

Beyond the National Parks, the National Park Service through its Cultural Resources, Partnerships and 

Science Programs is part of a national preservation partnership working to promote the preservation 

of historic resources in communities small and large throughout the country. For the past 35 years, the 

National Park Service, in partnership with the State Historic Preservation Offices, has administered the 

Federal Historic Preservation Tax Incentives Program. 

Commonly referred to the 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 revitalization of older 

communities in the nation’s cities and towns, along Main Streets, and in rural areas. Targeted to 

income-producing buildings, the HTC program is the largest and most effective Federal program 

specifically supporting historic preservation. Since the program’s inception in 1976, the National Park 

Services has certified the rehabilitation of more than 38,700 historic buildings throughout the United 

States. 

In Fiscal Year (FY) 2012, 744 completed historic rehabilitation projects were certified by the National 

Park Service, representing $3.15 billion in estimated rehabilitation costs that qualify for a 20% Federal 

tax credit. (Another 1,020 proposed projects were also approved in FY 2012.) Many of these buildings 

were abandoned or underutilized, and all were in need of substantial rehabilitation to return them to, 

or for their continued, economic viability.

The National Park Service issues annual reports on the HTC program quantifying the number of historic rehabilitations certified each year, their reported costs, and other statistical information on the 

program. The annual and statistical reports are available on the National Park Service’s Technical Preservation Services (TPS) website at http://www.nps.gov/tps/tax-incentives.htm, along with information 

on the HTC program in general.

For FY 2012, the National Park Service also turned to the Rutgers University Center for Urban Policy 

Research, through a cooperative agreement, to undertake and report on the economic impacts of the 

HTC for the fiscal year ending September 30, 2012. In the following pages, Rutgers University reports 

on their findings for the fiscal year 2012 as well as reporting on the cumulative economic impact of 

the Federal HTC program. An economic model previously developed by the Center under a series 

of grants from the National Park Service was utilized in the preparation of this report. The economic 

model was utilized by the Center for their three 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 identifies, the level and breadth of economic impacts resulting from the Federal 

HTCs in FY 2012 are quite impressive. In addition, the report includes information on the cumulative 

economic impacts of the Federal Historic Preservation Tax Incentives Program for the past 35 years, 

starting in 1977-78 with the first completed rehabilitation project to be certified by the National Park 

Service under the program. The program remains one of the Federal government’s most successful 

and cost-effective community revitalization programs. 

Stephanie S. Toothman

Associate Director, Cultural Resources, Partnerships, and Science

National Park Service
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ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

03 Report

17 Case Studies

26 Exhibits

Table of Contents
OVERVIEW OF THE RUTGERS ECONOMIC ANALYSIS

Snapshot of Research Assumptions and Methodology 

Annual Report on the Economic Impact of the 

Federal Historic Tax Credit for FY 2012

1 The HTC has a multistep application process, encompassing Part 1 (evaluation of the historic significance of the property), 

Part 2 (description of the rehabilitation work), and Part 3 (request for certification of completed work). Both Part 2 and 

Part 3 rehabilitation statistics include only items termed “eligible” or “qualified” for the tax credit (Qualified Rehabilitation 

Expenditures, or QREs), as opposed to “ineligible” or “nonqualified” costs. While the ineligible/nonqualified expenses do 

not count for tax credit purposes, they are a component of the total rehabilitation investment, or cost, borne by the HTCoriented developer. In practical terms, the total rehabilitation investment, including ineligible/nonqualified costs, helps 

pump-prime the economy. For example, in FY 2012, the Part 3-certified investment amounted to about $3.15 billion, while 

the total rehabilitation outlay associated with the HTC was about $3.5 billion.

The federal historic tax credit (HTC) is a federal income tax credit that promotes the 

rehabilitation of income-producing historic properties. This study examines the economic impacts of the HTC (currently a 20 percent credit) by analyzing the economic 

consequences of the projects it supports. This analysis focuses on the economic effects of these projects during construction, quantifying the total economic impacts 

(i.e., direct as well as multiplier, or secondary, economic consequences) for the fiscal 

year (FY) ending September 30, 2012, and for the period since the program’s inception. The study utilizes the Preservation Economic Impact Model (PEIM), a comprehensive economic model developed by Rutgers University for the National Park Service 

(NPS).

The current analysis applies the PEIM to both cumulative (FY 1978 through FY 2012) 

HTC-related historic rehabilitation investment (about $106.1 billion in inflation-adjusted 

2012 dollars) and single-year (FY 2012) HTC-related rehabilitation investment (about 

$3.5 billion). It considers the effects of the cumulative $106.1 billion rehabilitation investment as if it applied to one year (2012), rather than backdating the PEIM for each 

of the 35 years in the study period. It also considers the full rehabilitation investment 

associated with the HTC (e.g., $3.5 billion in FY 2012) and not the somewhat lower 

amount reported by the NPS based on estimated qualified rehabilitation costs indicated by property owners requesting certification of rehabilitation for purposes of the tax 

credit (e.g., $3.15 billion in FY 2012).1

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ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

The results of the PEIM include many fields of data. The fields most relevant to this 

study are the following:

JOBS: Employment, both part- and full-time, by place of work, estimated 

using the typical job characteristics of each industry.

INCOME: Earned, or labor, income; specifically, wages, salaries, and 

proprietor income.

WEALTH: Value added, the sub-national equivalent of gross domestic 

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 activity, which include taxes to the 

federal government and to state and local governments.

The following table summarizes the impacts of the HTC for each of these economic 

measures for the cumulative period FY 1978-2012 and FY 2012. Further detail on impact and methodology is contained in Summary Exhibit 1. Selected critical findings 

are plotted in Summary Exhibits 2 through 6.

The benefits of investment in HTC-related historic rehabilitation projects are extensive, 

increasing payrolls and production in nearly all sectors of the nation’s economy. The 

cumulative effects for the period of FY 1978 through FY 2012 are illustrative. During 

that period, $106.1 billion in HTC-related rehabilitation investment created 2.35 milNational Total (Direct and Multiplier Impacts)

Jobs (person-years, in thousands) 2,351.3 57.8

Income ($ billion) 89.1 2.5

Output ($ billion) 245.2 6.6

GDP ($ billion) 121.2 3.4

Taxes ($ billion) 35.5 0.9

Federal ($ billion) 25.9 0.6

State ($ billion) 4.9 0.1

Local ($ billion) 4.8 0.2

*In inflation-adjusted 2012 dollars

National economic impacts

Federal HTC-assisted Rehabilitation

A cumulative (FY 1978-

2012) $106.1 billion* in 

historic rehabilitation 

expenditures results in:

An annual (FY 2012) $3.5 

billion in historic rehabilitation expenditures results in:
ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

5

lion jobs and $121.2 billion in GDP, nearly 30 percent of which (692,000 jobs and $34.3 

billion in GDP) was in the construction sector. This is as one would expect, given the 

share of such projects that require the employment of building contractors. Other 

major beneficiaries were the service sector (418,000 jobs, $16.0 billion in GDP), the 

manufacturing sector (480,000 jobs, $31.1 billion in GDP), and the retail trade sector 

(345,000 jobs, $9.1 billion in GDP). As a result of both direct and multiplier effects, 

and due to the interconnectedness of the national economy, sectors not immediately 

associated with historic rehabilitation, such as agriculture, mining, transportation, and 

public utilities, benefit as well. (Summary Exhibit 2.) 

The recent economic benefits of the federal HTC are also most impressive. In FY 2012, 

HTC-related investments generated approximately 58,000 jobs, including 20,000 in 

construction and 13,000 in manufacturing, and were responsible for $3.4 billion in GDP, 

including $1.1 billion in construction and $0.9 billion in manufacturing. HTC-related 

activity in FY 2012 generated $2.5 billion in income, with construction ($0.9 billion) 

and manufacturing ($579 million) reaping major shares. (See Summary Exhibit 3 for 

more details.) These benefits were especially welcome in 2012, as the nation continued 

its recovery from a severe economic recession. Summary Exhibits 4 and 5 show on a 

state-by-state basis how HTC investment in FY 2012 contributed to national income 

and employment generation.

HTC IMPACTS AT THE STATE LEVEL

HTC-related historic rehabilitation benefits state economies as well as the national 

economy. For example, in Missouri in FY 2012, federal HTC-related rehabilitation activity totaled about $449 million. The national impacts of that investment included 7,683 

jobs, an additional $853 million in output, $320 million in income, $424 million in GDP, 

$74 million in federal taxes, and $101 million in total taxes. In Missouri alone, the same 

$449 million in HTC-related spending resulted in 4,290 jobs, $449 million in output, 

$199 million in income, $239 million in GSP, and $52 million in all taxes.

HTC Impacts Compared with Those of Non-preservation Investments 

and Housing and Downtown Revitalization Contributions

How does HTC-related historic rehabilitation perform as an economic pump-primer 

compared with other, non-preservation 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 rehabilitation yields markedly better effects on employment, income, GSP, and state and local taxes than an equal investment 

in new construction or many other economic activities (e.g., manufacturing or services). These findings demonstrate that historic rehabilitation, combined holistically with 

the many activities of the broader economy, delivers a commendably strong “bang for 

the buck.”

About half of all HTC transactions include housing. Often used in combination with 

programs such as the Low Income Housing Tax Credit (LIHTC), the HTC has produced 
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ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

powerful and very beneficial results in this 

area. From FY 1978 through FY 2012, the HTC 

has been involved in the creation of 466,047 

housing units. Of that total, 243,607, or 52 

percent, were existing housing units that were 

rehabilitated; 222,440, or 48 percent, were 

newly created housing units (e.g., housing 

resulting from the adaptive reuse of commercial space). In addition, 127,920, or 27 percent 

of the total, were affordable to low- and/or 

moderate-income (LMI) families. In FY 2012 

6,366 LMI units were produced under the 

federal HTC. The federal HTC’s influence on 

housing, largely invisible to the general public, deserves much greater attention, given 

its production of housing in general and LMI 

housing units in particular. (See Summary 

Exhibit 6.)

Spatial analysis by Rutgers University of the 

locations within states that use federal HTCs 

shows widespread utilization. Yet there is an 

understandable clustering of HTC activity in 

urban and rural population centers. Bolstering 

these centers through HTC investment is especially important for combating the adverse 

effects of sprawl and furthering smart growth. 

NPS statistics show that more than 75 percent of all approved HTC-related projects 

from FY 2002-2012 have been located in New 

Markets Tax Credit (NMTC) eligible Low-Income Census Tracts, and case study analysis 

of federal HTC implementation points to many additional quantitative and qualitative 

benefits, including providing affordable housing, fostering downtown economic development, and encouraging adaptive reuse. 

The Cost of the HTC, Benefits to the Economy, and Taxes Generated

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 (“qualified for tax credit”) investment.2 Applying that calculation, we find that 

the federal HTC cost the U.S. Treasury approximately $20.5 billion (in inflation- adjusted 2012 dollars) over the period of FY 1978 through FY 2012, while the cost for projects 

Martinsville Lofts, Martinsville, VA: Built 

in 1929, this former manufacturing 

complex was transformed into an 

affordable residential community of 

60 units. The adaptive reuse project 

features many original elements, such as 

a Quonset hut and rail spur. 

2 See footnote 1
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ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

certified by the NPS in FY 2012 was about $630 million.3 Weighing against these costs 

are the significant economic impacts (i.e., jobs, income, GDP, and output) and tax revenue (federal, state, and local) generated by HTC-aided rehabilitation and documented 

in this study. An important finding is that the HTC yields a net benefit to the U.S. Treasury, generating $25.9 billion in federal tax receipts over the life of the program, compared with $20.5 billion in credits allocated.

Summary of HTC Impacts

In short, the federal HTC is a good investment for local communities, individual states, 

and the nation. The cumulative impacts of the program to date (FY 1978 through FY 

2012) support this conclusion.

• The HTC leverages private investment. An inflation-adjusted (2012 dollars) $20.5 

billion in HTC cost encouraged a five times greater amount of historic rehabilitation 

($106.1 billion).

• The HTC generates millions of new jobs and billions of dollars in economic gains. 

This rehabilitation investment generated about 2.4 million new jobs and billions of 

dollars of total (direct and secondary) economic gains.

• The HTC has a positive cumulative impact on national economic output, GDP, income, taxes, and federal tax receipts. The cumulative positive impacts on the national economy included $245.2 billion in output, $121.2 billion in GDP, $89.1 billion 

in income, and $35.5 billion in taxes, including $25.9 billion in federal tax receipts.

• The leverage and multiplier effects noted above show that the HTC program 

works. The leverage and multiplier effects noted above support the argument that 

the federal HTC is a strategic investment that works.

HISTORY OF HTC PROGRAM ACTIVITY 

First authorized in 1976, the federal tax incentive for historic rehabilitation was significantly increased as a result of the passage of the Economic Recovery Tax Act (ERTA) 

of 1981. ERTA included a 25 percent credit for income-producing certified historic 

rehabilitation and quickly became a powerful driver of historic rehabilitation activity. Total certified NPS Part 2 approvals4 reached a peak of 3,214 projects in 1984. HTC 

activity (measured in number of projects and dollar investment) from the 1970s to date 

is shown in Exhibits 1 and 2.

The 1986 Tax Reform Act (TRA) reduced the 25 percent certified historic rehabilitation 

credit to 20 percent and effected other changes (e.g., adopting “passive loss” rules) 

which dampened investment compared with the earlier ERTA-period. The decline continued through 1993, when only 538 projects received NPS Part 2 approval. (Exhibit 1 

and 2.) 

3 These estimates are based on full utilization of the credits in cases of certified rehabilitations. For various reasons, not all 

completed projects certified by the NPS ultimately utilize the credit. Their economic impact, nevertheless, remains.

4 See footnote 1.
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ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

The HTC market began to recover during the second half of the 1990s, and the uptick 

has continued for most of the past decade, notwithstanding a dip in activity during the 

real estate recession of the late 2000s. From 2000 to 2012, the number of HTC-related 

projects, as measured by Part 2 approvals, increased compared with the previous 

decade (though project approval volume was below that achieved in the 1980s). The 

period also saw a dramatic increase in HTC investment, as measured in dollars of Part 

2 investment, compared with the 1990s. However, this increase was less potent (especially relative to the 1980s) when adjusted for inflation (Exhibit 2). 

Similar trends influenced the total rehabilitation project costs borne by HTC developers, and not just the dollar amount certified for tax credit purposes. The peaks and 

valleys in these figures are readily apparent in Exhibit 3. Total HTC-related project costs 

rose dramatically after the 1981 ERTA (to a high of $5.1 billion in 1985), fell precipitously 

after the 1986 Tax Reform Act (to a low of $1.2 billion in 1994), and regained vigor over 

the past decade (rising to about $3.5 to $5 billion annually and peaking at $5.4 billion 

in 2009), with some recent unevenness as the nation’s real estate market has faced difficult times. (All figures just cited are in inflation-adjusted 2012 dollars.)

Landmark Theater, Richmond, VA: Originally constructed in 1927, the theater features 

Moorish Revival design elements and is part of the Monroe Park Historic District. The 

multi-phase rehabilitation includes repairs to the roof and exterior masonry, building 

systems upgrades and marquee restoration.
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ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

ECONOMIC IMPACTS OF THE FEDERAL 

HISTORIC TAX CREDIT 

Total Economic Impacts From an Investment 

and How These are Determined

Rutgers University estimates total HTC-related rehabilitation investment throughout 

the United States at about $106.1 billion (in inflation-adjusted 2012 dollars) for the 

cumulative period of FY 1978 through FY 2012 and approximately $3.5 billion for FY 

2012. These two outlays can be translated into ensuing total economic benefits. Before 

quantifying these effects, however, we must define total economic impacts from an 

investment and explain how these are determined.

This study examines the total economic impacts of HTC-related historic rehabilitation, encompassing both direct and multiplier effects. The direct-impact component 

consists of labor and material purchases made specifically for the rehabilitation activity. Multiplier effects incorporate indirect and induced economic consequences. The 

indirect component consists of spending on goods and services by industries that 

produce the items purchased for historic rehabilitation activity. The induced component consists of expenditures made by the households of workers involved either 

directly or indirectly with rehabilitation activity. To illustrate, the purchase of lumber at 

a lumberyard for historic rehabilitation is a direct impact; the purchases of the mill that 

produced the lumber are an indirect impact; and the household expenditures of the 

mill and lumberyard workers are induced impacts.

Definitions of Relevant Fields From PEIM Results

Economists estimate direct, indirect, and induced economic effects using input-output 

(I-O) models. This study specifies the total economic effects of HTC-related historic 

rehabilitation with a state-of-the-art I-O model developed by the Rutgers University 

Center for Urban Policy Research for the NPS’s National Center for Preservation Technology and Training. The model is termed the Preservation Economic Impact Model 

(PEIM).

This study applies the PEIM to both cumulative (FY 1978 through FY 2012) HTC-related 

historic rehabilitation investment (about $106.1 billion in inflation-adjusted 2012 dollars) 

and the one-year FY 2012 HTC-related rehabilitation investment (about $3.5 billion in 

2012 dollars). In applying the cumulative analysis, we consider the effects of the $106.1 

billion rehabilitation investment as if it were effected in one year (2012), rather than 

backdating and applying the economic model to each of the 35 years in the study 

period. The results of the PEIM include many fields of data. The fields most relevant to 

this study are the HTC’s total impacts on the following:

JOBS: Employment, both part- and full-time, by place of work, estimated using the 

typical job characteristics of each industry. Manufacturing jobs, for example, tend 

to be full-time; in retail trade and real estate, part-time jobs predominate. All jobs 

generated at businesses in the region are included, even though the associated 
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ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

labor income of in-commuters may be spent outside the region. In this study, all 

results are for activities occurring within the time frame of one year. Thus, the job 

figures should be read as job-years. Several individuals may fill one job-year on any 

given project.

INCOME: Earned, or labor, income; specifically, wages, salaries, and proprietor 

income. Income does not include non-wage compensation (such as benefits, pensions, or insurance), transfer payments, dividends, interest, or rents.

WEALTH: Value added, the sub-national equivalent of GDP. At the state level, this 

is called GSP or, in some public data, GDP by state. Value added is widely accepted 

by economists as the best measure of economic well-being. It is estimated from 

state-level data by industry. For a firm, value added is the difference between the 

value of goods and services produced and the value of goods and non-labor services purchased. For an industry, therefore, it is composed of labor income (net of 

taxes); taxes; non-wage labor compensation; profit (other than proprietor income); 

capital consumption allowances; and net interest, dividends, and rents received.

TAXES: Tax revenues generated by the activity. The tax revenues are specified for 

federal, state, and local levels of government. Totals are calculated by industry.

• Federal tax revenues include corporate and personal income, Social Security, 

and excise taxes, estimated from calculations of value added and income generated.

• State tax revenues include income, excise, sales, and other state taxes, estimated from calculations of value added and income generated (e.g., in visitor 

purchases).

• Local tax revenues include payments to sub-state governments, mainly through 

property taxes on businesses and new worker households. Local tax revenues 

may also include sales tax and other taxes.

Exhibit 4 shows the cumulative economic impacts of HTC-related historic rehabilitation 

from FY 1978 through FY 2012, a span of 35 years. Exhibit 5 quantifies the one-year 

economic impacts of HTC-related historic rehabilitation in FY 2012 alone.

The major data reported in these two exhibits are organized in the following exhibit 

sections:

I. Total Effects

II. Distribution of Effect/Multiplier

III. Composition of Gross State Product

IV. Tax Accounts

Each of these sections is described in detail in Exhibit 6. Having presented this background material, we turn now to our findings.
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ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

 5 In applying the cumulative analysis to the period of FY 1978 through FY 2012, we consider the $106.1 billion investment as 

if it were effected in one year, namely 2012. Thus, when Exhibit 7 shows the economic impacts for each year in the period 

of FY 1978 through FY 2012, we have not backdated the model to each of these years, but rather indicated what each 

year’s investment would have realized in 2012 values.

6 The absolute peak was in 2009, when total HTC-investment reached about 5.4 billion in inflation-adjusted 2012 dollars.

ECONOMIC IMPACTS OF CUMULATIVE FEDERAL HTC-RELATED 

REHABILITATION INVESTMENT IN THE UNITED STATES, FY 1978 

THROUGH FY 2012

In the period of FY 1978 through 2012, the federal HTC aided an estimated cumulative 

total of $106.1 billion of historic rehabilitation. The total national economic impacts of 

that spending included about 2.4 million jobs, which generated an additional $245.2 

billion in output, $89.1 billion in income, $121.2 billion in GDP, and $35.5 billion in taxes 

($25.9 billion in federal taxes, $4.9 billion in state taxes, and $4.8 billion in local taxes). 

(See Exhibit 4.)

HTC-related historic rehabilitation projects increased production and payrolls in nearly 

all sectors of the nation’s economy. (See Exhibit 4.) The cumulative $106.1 billion in 

HTC-related rehabilitation investment created approximately 2.35 million jobs nationwide and $121.2 billion in GDP. Slightly less than 30 percent of those totals—692,000 

jobs and $34.3 billion in GDP—was in the nation’s construction sector. This is as one 

would expect, given the extensive involvement of building contractors in such projects. 

Other major economic-sector beneficiaries were services (418,000 jobs, $16 billion in 

GDP), manufacturing (480,000 jobs, $31.1 billion in GDP), and retail trade (345,000 

jobs, $9.1 billion in GDP). The finance, insurance, and real estate (FIRE) sector garnered 

177,000 jobs and $15.8 billion in GDP. As a result of multiplier effects and the interconnectedness of the national economy, sectors not immediately associated with historic 

rehabilitation were affected as well, including agriculture, mining, and transportation 

and public utilities (TPU). For example, the TPU sector realized a gain of 92,000 jobs 

and about $7 billion of GDP.

Exhibit 7 summarizes the key economic effects (employment, income, GDP, output, 

and taxes), by year, of HTC-related rehabilitation investment during the 35 years of 

the study period.5 In inflation-adjusted 2012 dollars, 1985 was the near-peak year 6 of 

investment, with $5.2 billion of total HTC-related rehabilitation investment. This timing 

was significant, as the 1985 data reflect investor response to the expansion of tax credits brought about by the ERTA of 1981. As the near-peak year of investment, 1985 also 

saw significant economic benefits from HTC-related activity, including about 115,000 

jobs and $4.35 billion (in 2012 dollars) of income. In 2009, the peak year of HTC-related rehabilitation investment ($5.4 billion in inflation-adjusted 2012 dollars), the HTC’s 

economic benefits also set high-water marks: 121,000 jobs and $4.6 billion (in 2012 

dollars) of income.

ECONOMIC IMPACTS OF HTC-RELATED REHABILITATION 

INVESTMENT, FY 2012

As noted earlier, HTC-related rehabilitation investment in FY 2012 was about $3.5 billion. The total national economic impact of this investment included about 58,000 
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ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

jobs, which generated $6.6 billion in output, $3.4 billion in GDP, $2.5 billion in income, 

and about $876 million in total taxes ($584 million in federal taxes, $141 million in state 

taxes, and $151 million in local taxes). (See Exhibit 5.)

Like the cumulative HTC-related investment during the study period, the one-year FY 

2012 historic rehabilitation investment produced benefits across the national economy 

(Exhibit 5). Of the $3.4 billion in HTC-related GDP, $1.1 billion was in the construction 

sector, $0.9 billion was in manufacturing, and $445 million was in services. The retail 

trade sector gained about $203 million in GDP, the FIRE sector about $276 million, and 

the wholesale trade sector about $116 million.

Exhibit 8 summarizes the national impacts of the one-year FY 2012 HTC-related rehabilitation investment in each state, as of that year. The 11 states shown below had 

considerably varying levels of tax credit investment in FY 2012 and, consequently, very 

different national-level job and income effects. While the national-level benefits were 

substantial, as we shall see below, the HTC has also had a high retention rate, compared with many other economic activities, for the benefits it generates in local and 

state economies.

Our investigation of HTC-related investment in Illinois, Missouri, and Pennsylvania 

found considerable state-level capture of national-level economic benefits. In FY 2012, 

HTC-related rehabilitation investment totaled $38.9 million in Illinois, $448.5 million in 

Missouri, and $196.4 million in Pennsylvania. Exhibit 9 summarizes the national- and 

state-level impacts for these three states.

Alabama $4.9 90 $3.1

Florida $91.3 1,591 $64.5

Illinois $38.9 574 $28.3

Indiana $23.8 418 $17.0

Michigan $87.7 1,393 $62.1

New York $267.8 4,430 $190.8

Ohio $208.4 3,743 $148.4

Oregon $84.5 1,496 $61.4

Pennsylvania $196.4 3,193 $142.6

Virginia $291.3 4,903 $208.5

Washington $73.9 1,184 $53.0

JOBS INCOME

(IN 2012 $ MILLIONS)

State FY 2012 HTC-Aided Selected National Economic Impacts

Rehabilitation Investment

(in 2012 $ millions)
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ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

The national-level economic impacts of the $448.5 million in HTC-related investment in 

Missouri in FY 2012 included 7,683 jobs, an additional $852.7 million in output, $319.9 

million in income, $423.7 million in GDP, and $100.8 million in taxes. (See Exhibit 9, upper portion.) The Missouri-retained portion of HTC-related investment (Exhibit 9, lower 

portion) created 4,290 jobs, and generated $448.5 million in output, $199.2 million 

in income, $239.4 million in GSP, and $51.9 million in taxes. The in-state wealth (GSP 

minus federal taxes) resulting from rehabilitation expenditures amounted to $203.3 

million,7 indicating a high 85 percent retention rate.8

HTC-related investment yielded similarly high state-level retention rates in Illinois and 

Pennsylvania (compare state- and national-level economic impacts in Exhibit 9). It 

stands to reason that the lion’s share of the economic benefits of HTC-related construction activity stays within a given state’s boundaries, rather than “leaking” elsewhere.9 The data from the three states investigated bears that out, and a similar pattern is likely to characterize most other states as well.

IMPORTANCE OF STATE HISTORIC TAX CREDITS

In addition to leveraging other federal subsidies for housing and business development 

in low-income communities, the HTC has provided a model for the enactment of state 

historic tax credits (SHTCs) in 33 states, with state HTCs proposed in an additional five 

states. (See Exhibit 10.) This number of tandem SHTCs compares favorably with the 14 

states with state LIHTCs and the 13 states with New Markets Tax Credit programs. NPS 

statistical reports document that states with the strongest SHTC statutes regularly lead 

the nation in the use of the federal HTC.

The Kansas state historic tax credit (KHTC) provides an example of the effectiveness of 

state HTCs. Implemented in FY 2002, the KHTC provides a 25 percent state income tax 

credit for qualified expenses on historic structures used for either income-producing or 

non-income producing purposes. The KHTC, which builds upon the 20 percent federal 

HTC in place since 1986, has markedly enhanced HTC investment in Kansas. During the 

21-year period before KHTC implementation, there were a total of 50 federal HTC projects in the state, an average of 2.4 projects per year. A 2010 Rutgers University study 

of the eight-year period after KHTC implementation found an approximate tenfold 

increase in HTC activity (both KHTC-only and HTC/KHTC-combined), to 542 projects. 

Average annual project volume increased by a factor of nearly 30, to 68 HTC projects. 

Rehabilitation project cost also mushroomed. In the 21-year pre-KHTC period, a total of 

$114 million (in inflation-adjusted 2009 dollars) was expended on federal HTC-assisted 

projects, an average of about $5.4 million per year. In the eight-year post-implementation period (FY 2002-2009), the value of tax credit-assisted historic projects in Kansas 

(again, both KHTC-only and HTC/KHTC-combined) more than doubled, to $271 million, 

and the average annual project volume increased by a factor of six, to $33.9 million (all 

7 Equals $239.4 million in Missouri GSP from the HTC, less $36.1 million in federal taxes paid by Missouri households and 

businesses as a result of HTC activity, leaving $203.3 million of Missouri in-state wealth.

8 Equals $203.3 million of Missouri in-state wealth from the HTC, divided by $239.4 million in GSP from HTC-related activity 

in Missouri.

9 The amount of “leakage” will vary by state, depending, for instance, on whether or not a state can supply the steel and 

lumber used in renovation.
14

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

in inflation-adjusted 

dollars). Others, including the Kansas 

State Historical Society, have remarked 

on the surge of tax 

credit-aided historic 

rehabilitation investment that took place 

in Kansas after the 

state tax credit took 

effect. 

States assist historic 

preservation also via 

other programs, many 

of which can be combined with the federal 

HTC. South Dakota, 

which has no state 

HTC, observes the 

State Historic Property Tax Moratorium, 

an eight-year moratorium on property 

tax assessments for 

certified improvements to historic properties. The Deadwood Fund, which is supported 

by a portion of the gambling revenue generated in Deadwood, S.D., provides matching 

grants for preservation, restoration, and rehabilitation of historic properties throughout 

the state. From 1998 through 2011, these two programs were associated with about 

$100 million of historic rehabilitation. Like other state programs, they are often used in 

conjunction with the federal HTC. The $1.4 million Windsor Block project in Rapid City, 

S.D., (that city’s largest historic downtown rehabilitation in two decades, which provided much-needed housing and retail space) made use of a Deadwood Fund grant, the 

State Historic Property Tax Moratorium, and the federal HTC. 

Neighborhood Service Organization (NSO) Bell Building, 

Detroit, Michigan: The former Michigan Bell and Western 

Electric Warehouse Building was built in 1930 and rehabilitated 

in 2011 by local non-profit NSO for use as administrative 

headquarters and supportive human service operations, 

including portion of 155 residential units for formerly homeless 

adults in transition. 
15

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

QUALITATIVE IMPACTS 

OF THE FEDERAL HTC: 

SELECTED NATIONAL CASE STUDIES

Thus far, this analysis has quantified the economic impacts of the federal HTC as estimated by the Rutgers PEIM. We gain an additional perspective on the federal HTC’s 

impacts through qualitative case study analysis. The case studies that follow describe 

what transpired on a project-by-project basis, specifying not only the local economic 

impacts, but also what HTC-related historic rehabilitation has meant, more broadly, to 

local communities.

The current investigation conducted case studies of the following historic rehabilitation 

projects:

ASM Headquarters, Materials Park, OH.

Oxford Mills, Philadelphia, PA.

Martinsville Lofts, Martinsville, VA.

Saenger Theatre, New Orleans, LA.

We encourage the reader to browse all four case studies, which present important 

“facts on the ground” regarding the benefits produced by the federal HTC. As a preview of the four cases, however, we offer the following synopsis.

The case studies illustrate how the federal HTC and allied programs have fostered the 

stabilization and revitalization of important older neighborhoods and encouraged the 

continued use and adaptive reuse of historic structures, sometimes with the added 

bonus of providing affordable housing. 

The two adaptive-reuse projects are former factory buildings – Martinsville Lofts, in 

Virginia, transformed a furniture factory into 60 units of affordable housing; and the 

rehabilitation of Oxford Mills in Philadelphia, a former textile factory, will also have an 

affordable housing component in addition to retail and office space for educationrelated nonprofit tenants upon completion in 2014. 

The two continued-use projects enable local anchors of culture and economics to 

remain in their communities. Despite sustaining considerable damage during Hurricane Katrina, the Saenger Theatre in New Orleans is being restored as a state-of-theart multipurpose performing arts facility, fulfilling its original purpose of entertaining 

crowds. The renovation of ASM International Headquarters, a Mid-Century modern 

office building in Materials Park, OH., allowed a company to avoid an out-of-state 

relocation and kept jobs in the local economy. This project also served as somewhat 

of a milestone for the HTC, as proper preservation of more modern historic buildings 

becomes a growing issue. 
16

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

The four projects had a combined total cost of approximately $105 million. Individual 

project costs ranged from about $6.4 million to about $50 million, with an average 

cost of $26 million.

Of the total project costs, rehabilitation and construction claimed the largest share 

($70.5 million, 67.4 percent of the total), followed by soft and other costs ($31.2 million, 

21.3 percent), and acquisition costs ($2.9 million, nearly three percent). Project funds 

originated from a variety of sources, including $64.8 million in equity from various tax 

credits, including the federal HTC, SHTCs, federal NMTCs and LIHTCs, $22.1 million from 

debt (both bank and other debt), and $17.6 million from other sources.

All of the four case studies utilized the federal HTC in combination with SHTCs, the 

LIHTC, or the NMTC. Tax credit assistance of various types is absolutely crucial for 

the financing of historic rehabilitation projects. In summary, successful rehabilitation 

projects are enabled by a layering of funding sources and subsidies, anchored by the 

federal HTC and complementary program. 

Summary of Costs and Funding Sources of 

Four Historic Rehabilitation Case Studies

Bank Debt/

Loans $4,000,000 $18,105,988 $ - $ - $22,105,988 

Equity-Credits $2,404,745 $16,573,012 $8,423,986 $37,414,488 $64,816,231 

Other $ - $3,786,332 $1,086,132 $12,743,617 $17,616,081 

Total Sources: $6,404,745 $38,465,332 $9,510,118 $50,158,105 $104,538,300 

USES 

Acquisition 

& Site Work $ - $2,500,000 $400,000 $ - $2,900,000 

Rehabilitation $4,810,507 $22,150,000 $6,600,553 $36,900,319 $70,461,379 

Soft Costs $1,594,238 $5,831,012 $1,345,967 $11,887,276 $20,658,493 

Other $ - $7,984,320 $1,163,598 $1,370,510 $10,518,428 

Total Uses: $6,404,745 $38,465,332 $9,510,118 $50,158,105 $104,538,300 

ASM 

Headquarters 

Oxford 

Mills

Martinsville 

Lofts Saenger Theatre

Total

SOURCES
17

18 Oxford Mills 

20 Martinsville Lofts

22 Saenger Theatre

24 ASM International Headquarters

Case Studies

CASE STUDIES 

17
18

CASE STUDY 1: OXFORD MILLS 

18

PROJECT PROFILE

Historic name: Quaker City Dye Works

Original construction date: 1873

Date of rehab: 2012-2014

Original use: Factory producing cotton and woolen yarns, 

dye, and silk for the garment industry

New use: Office space for education-related nonprofits, 

affordable apartments for public school 

teachers, and retail 

Project cost: $38.5 million

Federal HTC equity: $6.3 million

Other financial incentives: Federal NMTCs 

Investment Partner: TD Bank

Property and Project Details

Built in 1873 by the Quaker City Dye Works, this complex in Philadelphia’s South Kensington neighborhood manufactured dye, cotton and woolen yarns, and silk for the garment 

industry. At one time the largest dye works in Philadelphia, the operation employed some 

200 people. The historic facility, which later housed the Oxford Mills carpet company, 

now stands amid a mix of residential, commercial, and industrial properties and scattered 

vacant lots. South Kensington is located in a severely distressed census tract, which has 

an unemployment rate more than three times the national average.

Before (courtesy of Powers & 

Company, Inc.)

Rendering of completed project

Oxford Mills 

100 West Oxford Street, Philadelphia
19

The Oxford Mills project will redevelop the underutilized buildings into 38,000 square 

feet of office space for education-related nonprofits, a 1,300 square-foot café, and 114 

apartments marketed primarily to teachers employed by the School District of Philadelphia. Twenty-three of the apartments will be rent-restricted to people earning less 

than 80 percent of the area median income. Teach for America will occupy 14,000 

square feet of the new office space.

This rehabilitation project will create a vibrant, collaborative environment for educators 

and allied professionals—with easy access to commuter bus and rail lines--while catalyzing redevelopment in the surrounding neighborhood. Work is expected to be completed in time for the 2014 school year.

Project Budget

Sources of Funds Amount

NMTC Equity $10,210,200

Federal HTC Equity $6,362,812 

Loans $18,105,988 

Other $3,786,332 

Total $38,465,332 

Uses of Funds Amount

Acquisition $2,500,000 

Hard/Construction Costs $22,150,000 

Soft Costs $5,831,012 

Other Financing Costs $7,984,320 

Total $38,465,332 

Community Benefits

> 250 Construction Jobs

> 337 Permanent Jobs

> $947,600 in state and 

local taxes
20

CASE STUDY 2: MARTINSVILLE LOFTS 

Martinsville Lofts

900 Rives Road, Martinsville, Va.

PROJECT PROFILE

Historic name: Martinsville Novelty Corporation Factory

Original construction date: 1929

Date of rehab: 2010-2011

Original use: Furniture factory 

New use: Affordable housing 

Project cost: $9.5 million

Federal HTC equity: $1.3 million

Other financial incentives: State HTCs, state and federal LIHTCs

Property and Project Details

Built in 1929 to house manufacturing operations for occasional and novelty tables and 

cabinets, the Martinsville Novelty Corporation complex comprises a three-story factory 

building, drying kilns, a wood-storage area, a one-story concrete-and-frame storage 

building, a former factory restaurant, and a Quonset hut that was added in the 1940s 

or 1950s. The property runs parallel to the former Norfolk and Western Railway; a rail 

spur and trestle lead into the wood-storage area. 

Transforming a manufacturing plant into an inviting, affordable residential community 

presented a significant design challenge, but the Martinsville Lofts project ties the 

property’s patchwork quilt of certified historic structures into a cohesive whole while 

Before After
21

retaining much of the complex’s original character. The result, which combines industrial charm with functionality, represents a first-class housing option for working families.

Martinsville Lofts’ 60 units are reserved for families earning 60 percent or less of the 

area median income. Qualified residents attending an accredited college, university, 

community college, or vocational-technical school are eligible for scholarships of up to 

$2,000 per year. The project won the National Housing & Rehabilitation Association’s 

2012 J. Timothy Anderson Award for Most Innovative Adaptive Reuse.

Project Budget

Sources of Funds Amount

Federal LIHTC Equity $2,049,278 

Federal HTC Equity $1,338,838 

State HTC Equity $1,634,333 

American Recovery and 

Reinvestment Act (ARRA) 

1602 Exchange Funds 

(State LIHTC) $3,401,537 

Permanent Financing $1,086,132 

Total $9,510,118 

Uses of Funds Amount

Acquisition $400,000 

Hard/Construction Costs $6,600,553 

Soft Costs $1,345,967 

Other Financing Costs $1,163,598 

Total $9,510,118 

Community Benefits

> 65 Construction Jobs

> 83 Permanent Jobs

> $475,500 in state and 

local taxes
22

CASE STUDY 3: SAENGER THEATRE

Saenger Theatre

1101–1111 Canal Street, New Orleans

PROJECT PROFILE

Historic name: Saenger Theatre

Original construction date: 1927

Date of rehab: 2012-2013

Original use: Theater and movie house

New use: Multipurpose performing arts facility 

Project cost: $50 million

Federal HTC equity: $10 million

Other financial incentives: State HTCs, Federal NMTCs 

Investment Partner: JPMorgan Chase & Co.

Property and Project Details

Built during the silent film era, the Saenger Theatre was the flagship of Julian and 

Abe Saenger’s theater empire. With a 2,000-pipe Robert Morton organ and seating 

for 4,000, it presented movies, live theater, and musical performances by the Saenger 

Grand Orchestra. Converted to show only “talking pictures” in 1933 and subjected to 

various renovations and changes in ownership over the following decades, the Saenger 

remained in operation until 2005, when Hurricane Katrina struck New Orleans. The 

storm’s floodwaters filled the building’s basement and orchestra seating area, ultimately rising to a foot above stage level. The resulting damage rendered the building 

unusable for years afterward.

During post-Katrina 

flooding

Rendering of completed project
23

In 2009, New Orleans officials announced a public-private partnership to redevelop 

the property as a multipurpose performing arts facility. Slated for completion in 2013, 

the project will restore the façade’s decorative masonry, terracotta elements, sidewalk 

canopies, and wrought iron work. The building’s interior public arcades, foyers, lobbies, 

and auditorium will also be rehabilitated. When it reopens, the Saenger Theatre will 

host Broadway shows, music and dance performances, plays, films, corporate assemblies, lectures, and community events. Calling the Saenger Theatre “a crown jewel of 

our city,” New Orleans Mayor Mitch Landrieu said its return to active use “will create 

tens of millions in annual economic impact for our economy and will anchor the continued revitalization of Canal Street.”

Project Budget

Sources of Funds Amount

Federal HTC Equity $10,092,948

State HTC Equity $15,432,014

Federal NMTC Equity $11,889,526

Loans & Other $12,743,617

Total $50,158,105 

Uses of Funds Amount

Acquisition $0

Hard/Construction Costs $36,900,319 

Soft Costs $11,887,276 

Other Financing Costs $1,370,510

Total $50,158,105 

Community Benefits

> 388 Construction Jobs

> 676 Permanent Jobs

> $2,566,900 in state 

and local taxes
24

CASE STUDY 4: ASM INTERNATIONAL HEADQUARTERS

ASM International Headquarters

9639 Kinsman Road, Materials Park, Ohio

PROJECT PROFILE

Historic name: American Society for Metals Headquarters

Original construction date: 1959

Date of rehab: 2010-2011

Original and current use: Office and program space for the American 

Society for Metals, now ASM International 

Project cost: $6.4 million

Federal HTC equity: $1 million

Other financial incentives: $1.4 million State HTCs

Property and Project Details

Designed for the American Society for Metals by Cleveland architect John Terrance 

Kelly and constructed in 1959, this facility has served as headquarters for the organization—now known as ASM International—for over 50 years. The 60,000-square foot 

semicircular building stands beneath an eleven-story-high geodesic dome, whose 250-

foot diameter makes it the largest open-framework structure of its type in the world. 

Located in Materials Park, a 45-acre campus outside of Cleveland, this gem of midcentury modern architecture was one of the first of its kind to receive federal HTCs. 

Outdated systems and high operating costs had led ASM to consider out-of-state 

relocation, but local developer Michael Chesler recommended instead using the federal 

historic tax credit to assist in preserving the building. 

Photos: Jeff Goldberg, courtesy of The Chesler Group, Inc.
25

Restoration of and sustainable improvements to the building shell cut heating and 

cooling costs by 50 percent while preserving the historical integrity and layout of the 

building. Exterior work also included a restoration of the original “green” roof and 

stainless steel solar shades. Interior renovations retained the building’s signature metal 

elements, including its floating stainless steel staircases. Utility improvements included 

a new electrical system and automated heating with computer-controlled pumps. In 

2012, the project earned Chesler’s firm (the Chesler Group, now also headquartered in 

the building) a Wallpaper* Magazine Design Award for Best Renovation and an Honor 

Award from the National Trust for Historic Preservation. 

Project Budget

Sources of Funds Amount

Federal HTC equity $1,016,249

State HTC equity $1,388,496

Loans $4,000,000

Total $6,404,745

Uses of Funds Amount

Hard/Construction Costs $4,810,507

Soft Costs $1,594,238

Total $6,404,745

Community Benefits

> Retained more than 80 

jobs in Ohio
ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

26

SUMMARY EXHIBIT 1

Summary of Federal HTC Statistics

I. Investment/Tax Credit Component a FY 1978–2012 FY 2012

Nominal$d Real$e Real$f

TOTAL ANNUAL TOTAL ANNUAL TOTAL

AVERAGE AVERAGE

Approved proposed (for tax $74.8 $2.2 $125.9 $3.7 $5.3

credit) rehabilitation (“Part 2”)

Certified (for tax credit) $55.5 $1.6 $95.5 $2.7 $3.2

rehabilitationa (“Part 3”)

Total rehabilitation costb $61.7 $1.8 $106.1 $3.0 $3.5

Federal tax creditc $11.6 $0.3 $20.5 $0.6 $0.6

Dollar amounts above are expressed in billions

II. Economics Impacts FY 1978–2012 e FY 2012

TOTAL ANNUAL AVERAGE TOTAL

Jobs (in thousands) 2,351 67 58

Income $89.1 $2.5 $2.5

Gross Domestic Product $121.2 $3.5 $3.4

Output $245.2 $7.0 $6.6

Taxes-All Government $35.5 $1.0 $0.9

Taxes-Federal Government $25.9 $0.7 $0.6

Taxes-State Government $4.9 $0.1 $0.1

Taxes-Local Government $4.8 $0.1 $0.2

Dollar amounts above are expressed in billions

Technical Background: The HTC has a multi-step application process encompassing Part 1 (evaluation of the historic significance of the property), 

Part 2 (description of the proposed rehabilitation work), and Part 3 (request for certification of completed work). With respect to the HTC’s dollar 

magnitude, the most complete data is for the approved proposed (for tax credit) rehabilitation investment (Part 2). We do not have as complete 

data on the year-by-year certified (for tax credit) rehabilitation (Part 3) volume over the full FY 1978-2012 period. Further, we do not have specific 

data on the total rehabilitation investment associated with the HTC. By way of background, both Part 2 and Part 3 rehabilitation statistics include 

only what are termed “eligible” or “qualified” items (or Qualified Rehabilitation Expenditures—QREs), as opposed to “ineligible” or “non-qualified” 

costs. Examples of eligible/qualified items include outlays for renovation (walls, floors, and ceilings, etc.), construction-period interest and taxes, 

and architect fees. Examples of ineligible/non-qualified costs include landscaping, financing and leasing fees, and various other outlays (such as 

fencing, paving, sidewalks, and parking lots). While the ineligible/non-qualified expenses do not count for tax credit purposes, they are a component of the total rehabilitation investment borne by the HTC-oriented developer. In practical terms, the total rehabilitation investment (including 

ineligible/non-qualified costs) helps pump-prime the economy. Rutgers University estimates the missing information noted above based on the 

best published data and through additional case studies conducted specifically for the purposes of the current investigation.

a Data estimated from best available information.

b Equals all rehabilitation outlays, both eligible/qualified expenses and ineligible/non-qualified costs. The total rehabilitation cost is estimated by 

dividing the Part 3 investment by 0.9. Case study investigation suggests that the Part 3 amount is closer to 85 percent of the total rehabilitation 

cost, however we elected to apply the 0.9 factor to be conservative, that is, to derive a lower rather than higher estimate of the total rehabilitation 

expense.

c

 Assumes a 25 percent HTC in FY 1978-1986 and a 20 percent HTC in FY 1987-2012. 

These percents are applied to the certified rehabilitation (Part 3).

d In indicated year-dollars not adjusted for inflation.

e In inflation-adjusted 2012 dollars.

f

 Nominal and real dollars are the same for 2012.

SOURCES: Department of the Interior, National Park Service, Technical Preservation Services; National Council of State Historic 

Preservation Offices. Calculations by Rutgers University

(details in Exhibits 2 through 4)
27

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

SUMMARY EXHIBIT 2 

National Economic and Tax Impacts of Federal HTC-related Activity

FY 1978 – FY 2012 (HTC Investment: $106.1 billion)

GROSS DOMESTIC PROJECT

Government $378

Services $15,583

Finance, Ins., & Real Estate $9,097

Retail Trade $5,735

Wholesale $4,089

Transport. & Public Utilities $4,176

Manufacturing $20,223

 Construction $28,050

Mining $1,119

Agri. Serv., Forestry, & Fish $438

Agriculture $179

Income Created, by Sector, From Federal Historic Preservation Investment 

($89,068 million cumulative, FY 1978-2012)

$- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000

 (millions of 2012 $)

Jobs Created, by Sector, From Federal Historic Preservation Investment 

(2,351,248 jobs cumulative, FY 1978-2012)

Government $592 

Services $15,990 

Finance, Ins., & Real Estate $15,789 

Retail Trade $9,069

Wholesale $4,274

Transport. & Public Utilities $6,997 

Manufacturing $31,124 

Construction $34,292 

Mining $1,961 

Agri. Serv., Forestry, & Fish $685

Agriculture $385

Gross Domestic Product, by Sector, From Federal Historic Preservation Investment 

($121,157 million cumulative, FY 1978-2012)

$- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000

 (millions of 2012 $)

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

 (Jobs)

Government 10,132 

Services 417,897 

Finance, Ins., & Real Estate 176,935 

Retail Trade 344,922

Wholesale 78,993

Transport. & Public Utilities 92,149

Manufacturing 479,555

Construction 692,108 

Mining 19,191 

Agri. Serv., Forestry, & Fish 22,546

Agriculture 16,821
28

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

GROSS DOMESTIC PROJECT

SUMMARY EXHIBIT 3

National Economic and Tax Impacts of Federal HTC-related Activity

FY 2012 (HTC Investment: $3.5 billion)

Government $14

Services $445

Finance, Ins., & Real Estate $276

Retail Trade $203

Wholesale $116

Transport. & Public Utilities $171

Manufacturing $948

 Construction $1,113

Mining $46

Agri. Serv., Forestry, & Fish $19

Agriculture $10

Gross Domestic Product, by Sector, From Federal Historic Preservation Investment 

($3,361 million, FY 2012)

$- $200 $400 $600 $800 $1,000 $1,200

 INCOME GENERATED (millions of 2012 $)

Government $9

Services $446

Finance, Ins., & Real Estate $155

Retail Trade $131

Wholesale $110

Transport. & Public Utilities $95

Manufacturing $579

 Construction $914

Mining $28

Agri. Serv., Forestry, & Fish $11

Agriculture $3

$- $200 $400 $600 $800 $1,000 $1,200 $1,400

(millions of 2012 $)

Income Created, by Sector, From Federal Historic Preservation Investment 

($2,480 million, FY 2012)

Government 208

Services 9,819

Finance, Ins., & Real Estate 2,360

Retail Trade 6,735

Wholesale 1,919

Transport. & Public Utilities 2,243

Manufacturing 13,243

 Construction 20,322

Mining 523

Agri. Serv., Forestry, & Fish 267

Agriculture 142

Jobs Created, by Sector, From Federal Historic Preservation Investment 

(57,783 jobs, FY 2012)

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

 (Jobs)
29

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

!"$.%++!! !"$.(++!!

SUMMARY EXHIBIT 4

National Employment Impacts of HTC-related Investment in FY 2012

LEGEND

Employment

Number of Jobs

0–1000

1000-2000

2,000-3000

3,000-4,000

Greater than 4,000
30

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

SUMMARY EXHIBIT 5

National Income Impacts of Federal HTC-related Investment in FY 2012

LEGEND

Income

Millions of 2012 $

$0–$50

$50–$100

$100–$150

$150–$200

Greater than 200
31

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

SUMMARY EXHIBIT 6

Federal Historic Tax Credit Involving Housing, FY 1978–2012

SOURCES: Department of the Interior, National Park Service, Technical Preservation Services. Calculations by Rutgers University.

FISCAL YEAR TOTAL NUMBER OF NUMBER OF UNITS NUMBER OF UNITS TOTAL NUMBER OF PERCENT OF

HOUSING UNITS REHABILITATED CREATED LOW-/MODERATE- UNITS COMPLETED

COMPLETED INCOME UNITS THAT ARE LOW-/

MODERATE- INCOME

1978 6,962 3,876 3,086 1,197 17%

1979 8,635 4,807 3,828 1,485 17%

1980 8,349 4,648 3,701 1,435 17%

1981 10,425 6,332 4,093 3,073 29%

1982 11,416 6,285 5,131 2,635 23%

1983 19,350 12,689 6,661 3,792 20%

1984 20,935 16,002 4,933 142 1%

1985 22,013 16,618 5,395 868 4%

1986 19,524 12,260 7,264 640 3%

1987 15,522 11,306 4,216 1,241 8%

1988 10,021 7,206 2,815 592 6%

1989 11,316 7,577 3,739 2,034 18%

1990 8,415 6,098 2,317 1,993 24%

1991 5,811 4,081 1,730 1,288 22%

1992 7,536 5,523 2,013 1,762 23%

1993 8,286 5,027 3,259 1,546 19%

1994 10,124 6,820 3,304 2,159 21%

1995 8,652 5,747 2,905 2,416 28%

1996 11,545 5,537 6,008 3,513 30%

1997 15,025 5,447 9,578 6,239 42%

1998 13,644 6,144 7,500 6,616 48%

1999 13,833 4,394 9,439 4,815 35%

2000 17,270 5,740 11,530 6,668 38%

2001 11,546 4,950 6,596 4,938 43%

2002 13,886 5,615 8,271 5,673 41%

2003 15,374 5,715 9,659 5,485 36%

2004 15,784 5,738 10,046 5,357 34%

2005 14,438 5,469 8,969 4,863 34%

2006 14,695 6,411 8,284 5,622 38%

2007 18,006 6,272 11,734 6,553 36%

2008 17,051 6,659 10,392 5,220 31%

2009 13,743 5,764 7,979 6,710 49%

2010 13,273 6,643 6,630 5,514 42%

2011 15,651 7,435 8,216 7,470 48%

2012 17,991 6,772 11,219 6,366 35%

Total 466,047 243,607 222,440 127,920 27%
32

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

EXHIBIT 1

Federal Historic Tax Credits, FY 1978-2012

FISCAL YEAR INVESTMENT CUMULATIVE INVESTMENT ANNUAL TAX CREDIT CUMULATIVE ANNUAL

(PART 2) (IN $ MILLIONS*) (PART 2) (IN $ MILLIONS*) APPROVED PROJECTS TAX CREDIT APPROVED

(PART 2) PROJECTS (PART 2)

1978 $140 $140 512 512

1979 $300 $440 635 1,147

1980 $346 $786 614 1,761

1981 $738 $1,524 1,375 3,136

1982 $1,128 $2,652 1,802 4,938

1983 $2,165 $4,817 2,572 7,510

1984 $2,123 $6,940 3,214 10,724

1985 $2,416 $9,356 3,117 13,841

1986 $1,661 $11,017 2,964 16,805

1987 $1,083 $12,100 1,931 18,736

1988 $865 $12,965 1,092 19,828

1989 $927 $13,892 994 20,822

1990 $750 $14,642 814 21,636

1991 $608 $15,250 678 22,314

1992 $491 $15,741 719 23,033

1993 $468 $16,209 538 23,571

1994 $641 $16,850 560 24,131

1995 $812 $17,662 621 24,752

1996 $1,130 $18,792 687 25,439

1997 $1,720 $20,512 902 26,341

1998 $2,085 $22,597 1,036 27,377

1999 $2,303 $24,900 973 28,350

2000 $2,602 $27,502 1,065 29,415

2001 $2,737 $30,239 1,276 30,691

2002 $3,272 $33,511 1,202 31,893

2003 $2,733 $36,244 1,270 33,163

2004 $3,877 $40,121 1,200 34,363

2005 $3,127 $43,248 1,101 35,464

2006 $4,082 $47,330 1,253 36,717

2007 $4,346 $51,676 1,045 37,762

2008 $5,641 $57,317 1,231 38,993

2009 $4,697 $62,014 1,044 40,037

2010 $3,421 $65,435 951 40,988

2011 $4,023 $69,458 937 41,925

2012 $5,331 $74,789 1,020 42,945

These figures are in nominal indicated-year terms that are not adjusted for inflation.

Sources: Department of the Interior, National Park Service, Technical Preservation Services; National Council of State Historic

Preservation Offices. Calculations by Rutgers University.
33

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

EXHIBIT 2

Federal Tax Incentives for 

Rehabilitating Historic Buildings, FY 1978-2012

EXHIBIT 3

Estimated Total Rehabilitation Costs* Associated with the Federal HTC, 

FY 1978-2012

Investments—Part 2s (Real $) Investments—Part 2s (Nominal $) Annual Tax Credit Approved Projects—Part 2s

1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

FISCAL YEAR

$8.0

$7.0

$6.0

$5.0

$4.0

$3.0

$2.0

$1.0

$0.0

Notes: Figures are based on Part 2 applications and represent nominal 

indicated-year terms that are not adjusted for inflation.

Notes: Figures are estimated and are in inflation-adjusted 2012 dollars.

* Includes all rehabilitation outlays, both eligible/qualified and ineligible/non-qualified expenses.

Cost (in billions of 2012$)

Sources: Department of the Interior, National Park Service, Technical Preservation Services; National Council of State Historic Preservation 

Offices. Calculations by Rutgers University.

3,500

3,000

2,500

2,000

1,500

1,000

500

0

Expense (in Real 2012 $ billions)

$6.0

$5.0

$4.0

$3.0

$2.0

$1.0

$0.0

1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

FISCAL YEAR

Number of Projects
34

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

 

EXHIBIT 4

Economic and Tax Impacts of Federal HTC Investment on the Nation, 

FY 1978-2012 ($106.1 Billion)

Economic Component

OUTPUT ($THOUSANDS) EMPLOYMENT INCOME GROSS DOMESTIC

(JOBS) ($THOUSANDS) PRODUCT 

 ($THOUSANDS)

I. TOTAL EFFECTS (Direct and Indirect/Induced)* 

1. Agriculture 2,575,568.6 16,821 179,065.1 385,275.4

2. Agri. Serv., Forestry, & Fishing 1,259,123.9 22,546 438,038.5 684,775.1

3. Mining 4,580,846.0 19,191 1,119,138.3 1,961,319.7

4. Construction 48,146,912.0 692,108 28,049,678.5 34,292,089.8

5. Manufacturing 87,018,832.6 479,555 20,223,259.8 31,123,526.6

6. Transport. & Public Utilities 16,710,610.6 92,149 4,176,481.4 6,997,459.8

7. Wholesale 10,056,421.2 78,993 4,089,467.5 4,273,671.8

8. Retail Trade 15,585,301.4 344,922 5,734,672.9 9,068,821.9

9. Finance, Ins., & Real Estate 23,267,362.8 176,935 9,097,194.5 15,788,952.0

10. Services 34,726,969.9 417,897 15,582,517.5 15,989,799.6

11. Government 1,247,276.3 10,132 378,039.2 591,598.5

Total Effects (Private and Public) 245,175,225.3 2,351,248 89,067,553.2 121,157,290.2 

II. DISTRIBUTION OF EFFECTS/MULTIPLIER 

1. Direct Effects 106,129,710.0 1,113,678 47,131,021.3 57,508,585.0 

2. Indirect and Induced Effects 139,045,515.2 1,237,569 41,936,531.9 63,648,704.9 

3. Total Effects 245,175,225.3 2,351,247.6 89,067,553.2 121,157,289.9 

4. Multipliers (3/1) 2.310 2.111 1.890 2.107

III. COMPOSITION OF GROSS STATE PRODUCT 

1. Wages—Net of Taxes 75,595,759.3

2. Taxes 17,655,466.8

a. Local 2,742,933.4

b. State 2,678,448.2

c. Federal 12,234,085.2

 General 2,741,389.3

 Social Security 9,492,695.9

3. Profits, dividends, rents, and other 27,906,063.8 

4. Total Gross State Product (1+2+3) 121,157,289.9 

IV. TAX ACCOUNTS

1. Income—Net of Taxes 75,595,759.3 88,538,324.2 ---------

2. Taxes 17,655,466.8 17,844,685.4 35,500,152.2

a. Local 2,742,933.4 2,021,399.3 4,764,332.6 

b. State 2,678,448.2 2,176,953.9 4,855,402.0 

c. Federal 12,234,085.2 13,646,332.3 25,880,417.5 

 General 2,741,389.3 13,646,332.3 16,387,721.6 

 Social Security 9,492,695.9 - 9,492,695.9 

INITIAL EXPENDITURE IN DOLLARS 106,130,398,274.3

Note: Totals may differ from the sum of subtotals because of rounding. 

*Terms: Direct Effects: the proportion of direct spending on goods and services produced in the specified region.

Indirect Effects: the value of goods and services needed to support the provision of those direct economic effects.

Induced Effects: the value of goods and services needed by households that provide the direct and indirect labor.

 

BUSINESS

($THOUSANDS) 

HOUSEHOLD

($THOUSANDS) 

TOTAL 

($THOUSANDS)
35

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

EXHIBIT 5

Economic and Tax Impacts of Federal HTC Investment on the Nation in 

FY 2012 ($3.5 Billion)

Economic Component

OUTPUT ($THOUSANDS) EMPLOYMENT INCOME GROSS DOMESTIC

(JOBS) ($THOUSANDS) PRODUCT 

 ($THOUSANDS)

I. TOTAL EFFECTS (Direct and Indirect/Induced)* 

1. Agriculture 44,607.9 142 3,266.4 9,717.9

2. Agri. Serv., Forestry, & Fishing 31,034.5 267 10,657.0 19,396.4

3 Mining 102,953.7 523 27,688.3 45,682.7

4. Construction 1,550,387.6 20,322 914,138.8 1,112,530.4

5. Manufacturing 2,437,423.2 13,243 578,634.7 947,823.7

6. Transport. & Public Utilities 361,137.0 2,243 94,720.5 171,189.7

7. Wholesale 271,038.3 1,919 110,218.4 116,057.5

8. Retail Trade 357,018.1 6,735 131,425.0 203,107.5

9. Finance, Ins., & Real Estate 434,875.0 2,360 154,772.0 275,888.1

10. Services 982,660.7 9,819 445,587.7 445,378.6

11. Government 29,334.0 208 8,883.8 13,876.8

 Total Effects (Private and Public) 6,602,469.9 57,783 2,479,992.6 3,360,649.2 

II. DISTRIBUTION OF EFFECTS/MULTIPLIER 

1. Direct Effects 3,504,871.8 32,951 1,556,604.0 1,941,267.3 

2. Indirect and Induced Effects 3,097,598.1 24,832 923,388.6 1,419,381.9 

3. Total Effects 6,602,469.9 57,783 2,479,992.6 3,360,649.2 

4. Multipliers (3/1) 1.884 1.754 1.593 1.731 

III. COMPOSITION OF GROSS STATE PRODUCT 

1. Wages—Net of Taxes 2,086,788.9

2. Taxes 476,663.5 

a. Local 106,484.2 

b. State 86,683.6 

c. Federal 283,495.7 

 General 74,343.2 

 Social Security 209,152.4 

3. Profits, dividends, rents, and other 797,196.8 

4. Total Gross State Product (1+2+3) 3,360,649.2 

 

IV. TAX ACCOUNTS

1. Income—Net of Taxes 2,086,788.9 1,950,763.6 ————-

2. Taxes 476,663.5 399,635.8 876,299.3 

a. Local 106,484.2 44,762.5 151,246.7 

b. State 86,683.6 54,203.9 140,887.5 

c. Federal 283,495.7 300,669.4 584,165.1 

 General 74,343.2 300,669.4 375,012.7 

 Social Security 209,152.4 - 209,152.4

INITIAL EXPENDITURE IN DOLLARS 3,505,560,047.0

NOTE: Totals may differ from the sum of subtotals because of rounding.

TERMS: Direct Effects—the proportion of direct spending on goods and services produced in the specified region. Indirect Effects—the value of goods and 

services needed to support the provision of those direct economic effects. Induced Effects—the value of goods and services needed by households that 

provide the direct and indirect labor.

BUSINESS

($THOUSANDS) 

HOUSEHOLD

($THOUSANDS) 

TOTAL 

($THOUSANDS)
36

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

EXHIBIT 6

Explanation of Division-Level Economic Impacts Specified in the 

Current Study

The economic division-level results specified in the current study (Exhibits 4 and 5) 

include the sections explained below.

SECTION I—TOTAL EFFECTS 

Total effects by division, including both direct and multiplier (indirect and induced) effects.

SECTION II: DISTRIBUTION OF EFFECTS MULTIPLIER

II.1 Sum of all division direct effects.

II.2 Sum of all division multiplier (indirect and induced) effects.

II.3 Total effects (the sum of II.1 and II.2).

II.4 Multiplier ratio of total effects (II.3) divided by direct effects (II.1).

SECTION III: COMPOSITION OF GSP

III.1 Wages, net of taxes paid at the employer’s location.1

III.2 Taxes, local state and federal.

III.3 Profits, dividends, rents, and other (depending on the year of the GDP data 

used in the analysis and the geography and sector involved, these may be either 

positive or negative.)

III.4 Total GSP (the sum of III.1, III.2, and III.3).

SECTION IV: TAX ACCOUNTS

The sum of taxes remitted by businesses (see Section III) and households (where the 

latter are not included in the section III GSP). Section IV encompasses, for both businesses and households:

IV.1 Wages, net of taxes at place of employment (for businesses) or place of residence (for non-commuting households). 

IV.2 Taxes by level of government (local, state, or federal) and type (e.g., for the federal level, general taxes or Social Security). Note: the taxes in Section III are for business only, while the taxes in Section IV include both the business taxes from Section 

III and household-generated-taxes.

1. Wages net of taxes are not the same as income (shown in Section I). Income includes wages, salaries, proprietor’s income, 

and employer-paid taxes.
37

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

EXHIBIT 7

National Economic and Tax Impacts of HTC-related Investment by Year, 

FY 1978-2012

SOURCES: Department of the Interior, National Park Service, Technical Preservation Services; National Council of State Historic 

Preservation Offices. Calculations by Rutgers University.

1978 $495 11,058 $417 $568 $1,150 $22,242 $22,731 $121,966 $166,939

1979 $1,386 30,967 $1,169 $1,591 $3,221 $62,287 $63,656 $341,554 $467,496

1980 $2,301 51,413 $1,941 $2,641 $5,348 $103,413 $105,686 $567,071 $776,170

1981 $3,099 69,259 $2,615 $3,557 $7,204 $139,307 $142,370 $763,902 $1,045,579

1982 $3,648 81,536 $3,078 $4,188 $8,482 $164,001 $167,607 $899,316 $1,230,925

1983 $5,130 114,645 $4,328 $5,888 $11,926 $230,599 $235,669 $1,264,506 $1,730,774

1984 $5,034 112,498 $4,247 $5,778 $11,702 $226,279 $231,254 $1,240,820 $1,698,353

1985 $5,150 115,085 $4,345 $5,911 $11,971 $231,483 $236,572 $1,269,355 $1,737,410

1986 $4,050 90,517 $3,417 $4,649 $9,416 $182,066 $186,069 $998,375 $1,366,510

1987 $3,167 70,783 $2,672 $3,636 $7,363 $142,374 $145,505 $780,721 $1,068,599

1988 $2,619 58,526 $2,210 $3,006 $6,088 $117,720 $120,308 $645,528 $883,557

1989 $2,401 53,654 $2,026 $2,756 $5,581 $107,920 $110,293 $591,788 $810,001

1990 $2,008 44,875 $1,694 $2,305 $4,668 $90,261 $92,246 $494,954 $677,460

1991 $1,732 38,701 $1,461 $1,988 $4,026 $77,843 $79,555 $426,860 $584,257

1992 $1,973 44,085 $1,664 $2,264 $4,586 $88,673 $90,623 $486,246 $665,542

1993 $1,421 31,753 $1,199 $1,631 $3,303 $63,869 $65,273 $350,231 $479,373

1994 $1,212 27,080 $1,022 $1,391 $2,817 $54,468 $55,666 $298,680 $408,813

1995 $1,368 30,579 $1,154 $1,571 $3,181 $61,507 $62,860 $337,281 $461,649

1996 $1,775 39,674 $1,498 $2,038 $4,127 $79,801 $81,555 $437,593 $598,949

1997 $1,554 34,719 $1,311 $1,783 $3,612 $69,834 $71,369 $382,940 $524,143

1998 $1,500 33,526 $1,266 $1,722 $3,487 $67,434 $68,917 $369,779 $506,130

1999 $1,980 44,258 $1,671 $2,273 $4,604 $89,020 $90,977 $488,149 $668,147

2000 $3,378 75,485 $2,850 $3,877 $7,852 $151,832 $155,170 $832,583 $1,139,585

2001 $3,467 77,470 $2,925 $3,979 $8,059 $155,823 $159,249 $854,470 $1,169,542

2002 $3,875 86,602 $3,270 $4,448 $9,009 $174,191 $178,021 $955,191 $1,307,402

2003 $5,071 113,320 $4,278 $5,820 $11,788 $227,933 $232,944 $1,249,889 $1,710,766

2004 $3,631 81,156 $3,064 $4,168 $8,442 $163,237 $166,826 $895,122 $1,225,184

2005 $3,631 81,149 $3,064 $4,168 $8,441 $163,223 $166,812 $895,047 $1,225,081

2006 $3,582 80,048 $3,022 $4,111 $8,327 $161,009 $164,550 $882,908 $1,208,467

2007 $3,636 81,249 $3,067 $4,173 $8,452 $163,426 $167,019 $896,158 $1,226,603

2008 $3,794 84,788 $3,201 $4,355 $8,820 $170,544 $174,294 $935,191 $1,280,029

2009 $5,433 121,428 $4,584 $6,237 $12,631 $244,240 $249,611 $1,339,313 $1,833,164

2010 $4,135 92,417 $3,489 $4,747 $9,613 $185,887 $189,975 $1,019,329 $1,395,191

2011 $3,990 89,163 $3,366 $4,580 $9,275 $179,342 $183,285 $983,438 $1,346,066

2012 $3,506 57,783 $2,480 $3,361 $6,602 $151,247 $140,888 $584,165 $876,299

Totals $106,130 2,351,249 $89,068 $121,157 $245,175 $4,764,333 $4,855,402 $25,880,418 $35,500,152

Year Total Rehab. National Economic Impacts Tax Impacts (2012 $ thousands)

Costs (2012

$ millions) EMPLOYMENT LOCAL STATE

(JOBS)

2012 $ MILLIONS

INCOME GDP OUTPUT

FEDERAL TOTAL
38

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

EXHIBIT 8 

National Economic and Tax Impacts of Federal HTC-related Investment 

by State, FY 2012

AL $4.9 90 $3.1 $5.8 $8.0 $87 $129 $745 $960

AK $0.0 0 $0.0 $0.0 $0.0 $0 $0 $0 $0

AZ $0.0 0 $0.0 $0.0 $0.0 $0 $0 $0 $0

AR $11.2 231 $7.8 $11.6 $20.6 $221 $404 $1,869 $2,494

CA $51.8 773 $37.6 $49.1 $101.4 $1,308 $2,092 $9,522 $12,921

CO $11.7 750 $8.2 $11.4 $22.0 $298 $379 $1,949 $2,626

CT $63.9 914 $44.5 $61.8 $116.8 $3,364 $2,852 $10,237 $16,453

DE $8.1 128 $5.7 $7.8 $15.1 $375 $394 $1,279 $2,048

DC $35.1 510 $23.7 $32.0 $61.8 $2,361 $947 $4,799 $8,108

FL $91.3 1,591 $64.5 $87.3 $170.8 $4,719 $2,852 $15,396 $22,967

GA $18.7 368 $12.9 $19.0 $34.1 $880 $854 $3,155 $4,889

HI $4.2 60 $2.8 $4.0 $7.4 $143 $168 $617 $928

ID $0.0 0 $0.0 $0.0 $0.0 $0 $0 $0 $0

IL $38.9 574 $28.3 $36.6 $76.1 $1,234 $1,120 $6,820 $9,174

IN $23.8 418 $17.0 $22.9 $45.5 $7,856 $5,235 $4,053 $17,144

IA $71.1 1,285 $48.2 $71.9 $125.1 $2,382 $2,119 $11,156 $15,656

KS $68.3 1,241 $47.8 $66.2 $126.6 $16,117 $11,212 $10,989 $38,318

KY $26.3 504 $18.2 $25.7 $48.2 $2,632 $2,096 $4,194 $8,922

LA $192.8 3,406 $137.4 $180.0 $365.2 $6,725 $7,006 $31,626 $45,357

ME $29.1 441 $17.1 $25.7 $55.7 $1,320 $1,227 $4,607 $7,153

MD $37.5 579 $26.3 $35.4 $69.5 $1,216 $1,101 $6,001 $8,318

MA $586.3 7,619 $411.4 $552.0 $1,091.8 $15,643 $18,873 $94,630 $129,145

MI $87.7 1,393 $62.1 $83.2 $165.4 $2,599 $3,160 $14,481 $20,240

MN $34.2 538 $24.0 $32.3 $63.8 $1,199 $1,357 $5,508 $8,064

MS $30.4 632 $21.1 $30.0 $55.9 $2,297 $1,830 $4,911 $9,038

MO $448.5 7,683 $319.9 $423.7 $852.7 $12,388 $14,170 $74,278 $100,836

MT $3.8 73 $2.6 $3.7 $6.9 $140 $129 $587 $856

NE $31.5 604 $21.5 $31.1 $56.3 $6,504 $4,444 $4,874 $15,822

NV $46.7 702 $32.2 $44.7 $85.1 $1,297 $721 $7,295 $9,313

NH $0.0 0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

State Total Rehab. National Economic Impacts Tax Impacts (2012 $ thousands)

Costs (2012

$ millions) EMPLOYMENT LOCAL STATE

(JOBS)

2012 $ MILLIONS

INCOME GDP OUTPUT

FEDERAL TOTAL

continued on the next page
39

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

EXHIBIT 8 (continued)

National Economic and Tax Impacts of Federal HTC-related Investment 

by State, FY 2012

NJ $3.9 57 $2.8 $3.7 $7.5 $77.3 $116.4 $644.5 $838.2

NM $2.4 45 $1.7 $2.3 $4.4 $101.3 $100.0 $386.8 $588.1

NY $267.8 4,430 $190.8 $254.9 $503.9 $17,354.9 $14,704.2 $46,035.1 $78,094.2

NC $118.6 2,222 $83.5 $118.8 $222.2 $2,867.0 $4,146.7 $20,286.9 $27,300.7

ND $0.0 0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

OH $208.4 3,743 $148.4 $205.3 $395.7 $9,047.8 $7,623.2 $36,142.8 $52,813.7

OK $19.0 374 $13.5 $18.9 $36.2 $456.5 $659.2 $3,252.9 $4,368.5

OR $84.5 1,496 $61.4 $80.5 $164.6 $2,198.8 $2,963.1 $14,739.6 $19,901.5

PA $196.4 3,193 $142.6 $189.0 $383.1 $6,547.9 $5,552.8 $34,588.5 $46,689.2

RI $64.1 977 $43.7 $65.6 $115.2 $2,317.1 $2,026.2 $10,008.7 $14,351.9

SC $1.0 19 $0.7 $1.0 $1.9 $29.5 $33.1 $171.4 $234.0

SD $4.4 88 $3.1 $4.0 $8.2 $142.1 $82.9 $660.7 $885.7

TN $13.1 232 $9.2 $12.7 $24.5 $371.0 $281.6 $2,143.3 $2,796.0

TX $42.1 680 $30.5 $39.9 $82.4 $1,452.8 $834.7 $7,507.7 $9,795.2

UT $5.2 96 $3.6 $5.1 $9.6 $136.2 $172.2 $850.1 $1,158.4

VT $26.9 477 $19.5 $25.6 $51.6 $1,052.5 $1,326.6 $4,379.1 $6,758.2

VA $291.3 4,903 $208.5 $281.8 $555.1 $7,549.4 $9,785.7 $49,895.5 $67,230.5

WA $73.9 1,184 $53.0 $71.8 $142.0 $3,412.9 $2,672.4 $12,759.6 $18,845.0

WV $12.8 245 $8.9 $12.9 $23.4 $388.8 $448.6 $2,060.5 $2,898.0

WI $11.7 203 $8.3 $11.4 $21.9 $412.0 $470.3 $1,969.5 $2,851.8

WY $0.10 10 $0.4 $0.5 $1.0 $28.8 $18.4 $105.7 $152.8

State Total Rehab. National Economic Impacts Tax Impacts (2012 $ thousands)

Costs (2012

$ millions) EMPLOYMENT LOCAL STATE

(JOBS)

2012 $ MILLIONS

INCOME GDP OUTPUT

FEDERAL TOTAL

Totals $3,505.4 57,781 $2,480.0 $3,360.6 $6,602.5 $151,246.6 $140,887.7 $584,165.2 $876,299.3

Sources: Department of the Interior, National Park Service, Technical Preservation Services; National Council of State Historic 

Preservation Offices. Calculations by Rutgers University.
ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

40

Jobs (person-years) 574 7,683 3,193

Income (2012 $millions) 28.3 319.9 142.6

Output (2012 $millions) 76.1 852.7 383.1

GDP* (2012 $millions) 36.6 423.7 189

Taxes (2012 $millions) 9.1 100.8 46.7

Federal (2012 $millions) 6.8 74.3 34.6

State (2012 $millions) 1.1 14.2 5.6

Local (2012 $millions) 1.2 12.4 6.5

I: Illinois Rehabilitation 

Using Federal HTC—

$38.9 million in FY 2012 

total rehabilitation costs 

results in:

Direct Effects

National 

Total 

Impacts 

(Direct and 

Multiplier)

State 

Portion of 

National 

Total 

Impacts

II: Missouri 

Rehabilitation Using 

Federal HTC—$448.5 

million in FY 2012 total 

rehabilitation costs 

results in:

III: Pennsylvania 

Rehabilitation Using 

Federal HTC—$196.4 

million in FY 2012 total 

rehabilitation costs 

results in:

NATIONAL TOTAL (DIRECT AND MULTIPLIER) IMPACTS

IN-STATE TOTAL (DIRECT AND MULTIPLIER) IMPACTS

*GDP = GROSS DOMESTIC PRODUCT; GSP = GROSS STATE PRODUCT; IN-STATE WEALTH = GSP LESS FEDERAL TAXES. 

NOTE: Totals may differ from the sum of subtotals because of rounding. 

 

SOURCE: Rutgers University, Center for Urban Policy Research, 2012.

EXHIBIT 9

Summary of Economic Impacts of Federal HTC-related Investment in 

Illinois, Missouri, and Pennsylvania in FY 2012

Jobs (person-years) 307 4,290 1,762

Income (2012 $millions) 17.3 199.2 87.2

Output (2012 $millions) 38.9 448.5 196.4

GSP* (2012 $millions) 20.4 239.4 105.5

Taxes (2012 $millions) 4.6 51.9 23.4

Federal (2012 $millions)

3.3 36.1 16.7

State (2012 $millions)

0.7 7.7 3.3

Local (2012 $millions)

0.6 8.1 3.5
41

ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT FOR FY 2012

EXHIBIT 10

Historic Tax Credits: State Programs

LEGEND

States with HTCs

States without HTCs

States that do not 

tax income

Source: National Trust Community Investment Corporation and the National Trust for Historic Preservation
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 Preservation Services

National Park Service

U.S. Department of the Interior

Washington, DC 20240