Annual Report on the Economic 

Impact of the Federal Historic 

Tax Credit for FY 2017

National Park Service

U.S. Department of the Interior

Technical Preservation Services
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

http://bloustein.rutgers.edu/

ejb@policy.rutgers.edu

Technical Preservation Services

National Park Service

U. S. Department of the Interior

Washington, DC 20240

https://www.nps.gov/tps/

Front Cover Image: Zeigler’s Drug Store/Allen’s Hall, 

Florence, South Carolina

Photo: Lucas Brown, Kickstand Studio

The executive summary is based on the findings 

of a National Park Service-funded study 

undertaken through a cooperative agreement 

with Rutgers University’s Center for Urban 

Policy Research. Rutgers University is responsible 

for the content of the study. Some additional 

demographic analysis was provided courtesy 

of PolicyMap. The National Trust for Historic 

Preservation assisted the National Park Service 

in the preparation of the case studies.

September 2018
Beyond the National Park System, the National Park Service (NPS) 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 40 years, 

the NPS, in partnership with the State Historic Preservation Offices, has administered the Federal Historic 

Preservation Tax Incentives Program. The program provides a 20% Federal tax credit to property owners 

who undertake a substantial rehabilitation of a historic building in a business or income-producing use while 

maintaining its historic character. 

Commonly referred to as the 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. Since the program’s inception in 1976, the 

NPS has certified the rehabilitation of more than 43,000 historic properties throughout the United States, 

with the HTC leveraging over $144 billion in private investment in historic rehabilitation and generating over 

2.5 million jobs. 

In Fiscal Year (FY) 2017, 1,035 completed historic rehabilitation projects were certified by the NPS, 

representing $5.82 billion in estimated rehabilitation costs that qualify for the 20% Federal tax credit. 

(Another 1,501 proposed projects were also approved in FY 2017.) Many of these projects involved buildings 

that were abandoned or underutilized and in need of substantial rehabilitation to return them to, or for their 

continued, economic viability. The HTC is an important tool in helping to revitalize older, economically 

depressed communities. Based on project data provided by the NPS, PolicyMap (a web-based online data and 

mapping application) determined that 50% of the certified rehabilitation projects in FY 2017 were located in 

low- and moderate-income census tracks, and over 79% were located in economically distressed areas.

A common misconception about the HTC is that it only supports large projects and projects in large cities. 

Half of all projects in FY 2017 were under $1 million, and 20% were under $250,000. PolicyMap determined 

that a quarter of all certified rehabilitation projects in FY 2017 were located in communities with under 

50,000 in population and over 15% in communities with under 25,000 in population. 

The NPS 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 FY 2017 

annual report is available on the NPS Technical Preservation Services website at http://www.nps.gov/tps/taxincentives.htm, along with information on the HTC program in general.

For FY 2017, the NPS also turned to the Rutgers University’s 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, 2017. This report highlights its main findings. An economic model originally developed 

by the Center under a series of grants from the NPS was utilized in the preparation of this report. The 

economic model was utilized by the Center for their eight 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 shows, the level and breadth of the positive economic impacts resulting from the 

Federal HTC in FY 2017 are quite striking. In addition, the report includes information on the cumulative 

economic impact of the Federal Historic Preservation Tax Incentives Program for the past 40 years, starting 

in 1977–1978 with the first completed rehabilitation project to be certified by the NPS under the program. 

Finally, the report includes four case studies of HTC projects certified in FY 2017. The HTC program 

remains the Federal government’s largest and most effective program supporting historic preservation and 

community revitalization. 

Technical Preservation Services, National Park Service

September 2018

A Message from the National Park Service

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2017 1
Overview of the Rutgers Economic Analysis

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 (a 20% credit since 1986) 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 Fiscal Year (FY) 

2017, beginning October 1, 2016, and ending September 30, 2017, and for the period since the program’s inception (beginning in 

FY 1978, with the certification of the first completed rehabilitation project under the program). The study utilizes the Preservation 

Economic Impact Model (PEIM), a comprehensive economic model development by Rutgers University’s Center for Urban Policy 

Research for the National Park Service. 

The current analysis applies the PEIM to both cumulative (FY 1978 through FY 2017) HTC-related historic rehabilitation investment 

(about $144.6 billion in inflation-adjusted 2017 dollars) and single-year (FY 2017) HTC-related rehabilitation investment (about 

$6.5 billion). It considers the effects of the cumulative $144.6 billion rehabilitation investment as if it applied to one year (2017), 

rather than backdating the PEIM for each of the 40 years in the study period. It also considers the full rehabilitation investment 

associated with the HTC (e.g., $6.5 billion in FY 2017), and not the somewhat lower amount reported by the National Park 

Service based on estimated qualified rehabilitation costs indicated by property owners requesting certification of rehabilitation for 

purposes of the tax credit (e.g., $5.8 billion in FY 2017).1

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

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). 

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.

1 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). Both Part 2 and 

Part 3 rehabilitation statistics include only costs considered “eligible” or “qualified” for the tax credit under the Internal Revenue 

Code (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 HTC property owner. In practical terms, the total rehabilitation investment, including ineligible/nonqualified costs, 

helps pump-prime the economy. For example, in FY 2017, the Part 3 certified investment amounted to about $5.8 billion, while 

the total rehabilitation outlay associated with the HTC was an estimated $6.5 billion.

Executive Summary

2 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
The following table summarizes the impacts of the HTC in inflation-adjusted 2017 dollars for each of these economic 

measures for the cumulative period FY 1978–FY 2017 and for FY 2017. 

2 Changes in the official annual reported rates of inflation caused the Rutgers research team to make various changes in the calculations 

concerning the economic impacts of the impacts of the HTC over time. The changes are particularly notable over the past few years 

when job counts ensuing from the HTC had to be adjusted.

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 

2017 are illustrative. During that period, $144.6 billion in HTC-related rehabilitation investment created 2,548,000 jobs and 

$158.1 billion in GDP, about 30% of which (765,000 jobs and $46.3 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 and trades. Other major 

beneficiaries were the service sector (465,000 jobs, $20.9 billion in GDP), the manufacturing sector (532,000 jobs, $41.5 billion 

in GDP), and the retail trade sector (369,000 jobs, $11.4 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. (Exhibit 2.2). 

The most recent economic benefits of the Federal HTC are also most impressive. In FY 2017, HTC-related investments generated 

approximately 107,000 jobs, including 38,000 in construction and 24,000 in manufacturing, and were responsible for $6.2 

billion in GDP, including $2.0 billion in construction and $1.8 billion in manufacturing. HTC-related activity in FY 2017 generated 

$4.6 billion in income, with construction ($1.7 billion) and manufacturing ($1.1 billion) reaping major shares. (See Exhibit 2.1 for 

more details.)

National Total Impacts 

2017 $ billion

$144.6 billion 

CUMULATIVE (FY 1978–2017)2

historic rehabilitation 

expenditures results in:

$6.5 billion 

ANNUAL FY 2017

historic rehabilitation 

expenditures results in:

Jobs (person-years, in thousands) 2,548.0 106.9

Income ($ billion) $116.4 $4.6

Output ($ billion) 318.0 12.2

GDP ($ billion) 158.1 6.2

Taxes ($ billion) 45.4 1.7

 Federal ($ billion) 32.4 1.1

 State ($ billion) 6.5 0.3

 Local ($ billion) 6.5 0.3

Federal HTC-Assisted Rehabilitation

National Economic Impacts

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2017 3
The HTC National and State Economic Impacts

A breakdown by state of the national economic benefits, both for FY 2017 and cumulatively for the last five fiscal years, shows 

the benefits of the program on the national economy. (See Exhibits 1.1 and 1.2) 

HTC-related historic rehabilitation benefits state economies as well as the national economy. For example, in New York State in 

FY 2017, Federal HTC-related rehabilitation activity totaled about $1.138 billion. The national impacts of that investment included 

18,818 jobs, an additional $2.141 billion in output, $811 million in income, $1.083 billion in GDP, $196 million in Federal taxes, 

and $332 million in total taxes. In New York alone, the same $1.138 billion in HTC-related spending resulted in 10,750 jobs, 

$1.136 billion in output, $505 million in income, $623 million in gross state product (GSP), and $183 million in total taxes.

HTC Impacts Compared with those of Non-Preservation Investments 

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, GDP, 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.” 

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% since 1986) applied to the Part 3 (“qualified for tax credit”) estimated investment.3 Applying that calculation, the 

Federal HTC costs the U.S. Treasury approximately $27.5 billion (in inflation-adjusted 2017 dollars) over the period of FY 1978 

through FY 2017, while the cost for projects certified by the National Park Service in FY 2017 alone was about $1.165 billion.4

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 rehabilitations and documented in this study. An important finding is that the HTC 

yields a net benefit to the U.S. Treasury, generating $32.4 billion in Federal tax receipts over the life of the program, compared 

with $27.5 billion in credits allocated.

3 See footnote 1, on page 2.

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

projects certified by the National Park Service may ultimately utilize the credit. Their economic impact, nevertheless, remains.

R. J. Reynolds Tobacco Company Building (now The Kimpton Cardinal Hotel and The Residences at 

the R. J. Reynolds Building), Winston-Salem, NC, Photos: Clear Sky Images

 

4 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
Fiscal Year 2017 Highlights

Fiscal Year 1978 — Fiscal Year 2017 Cumulative HTC Impacts

2017 POSITIVE IMPACTS 

on the national economy:

$12.2 billion in output, 

$6.2 billion in GDP, 

$4.6 billion in income, and 

$1.7 billion in taxes, including 

$1.1 billion in Federal tax receipts.

107,000 

New jobs created and billions 

of dollars in total (direct and 

secondary) economic gains.

50% Projects in low- and moderateincome census tracts.*

79% Projects in economically 

distressed areas.*

26% Projects in communities of 

less than 50,000 people.*

Less than 25,000

25,000 to 49,999

50,000 to 99,999

100,000 to 249,999

250,000 to 500,000

Over 500,000

Projects by Community Size (Population)*

$6.5 billion

total in rehabilitation investment.

CUMULATIVE POSITIVE IMPACTS

on the national economy: 

$318.0 billion in output, 

$158.1 billion in GDP, 

$116.4 billion in income, and 

$45.4 billion in taxes, including 

$32.4 billion in Federal tax receipts.

An inflation-adjusted (2017 dollars) $27.5 billion HTC 

cost encouraged a five times greater amount of historic 

rehabilitation, $144.6 billion.

2.5 million 

New jobs created and billions 

of dollars in total (direct and 

secondary) economic gains.

These leverage and multiplier 

effects support the economic 

argument that the Federal HTC is a 

strategic investment that works.

*Courtesy of PolicyMap (County subdivision data, 2012-2016 U.S. Bureau of the Census American Community Survey, and New Markets 

Tax Credit eligibility data (not including severe distress and non-metropolitan areas), U.S. Department of the Treasury, 2011–2015).

$144.6 billion

in cumulative rehabilitation investment.

16%

10%

12%

21%

24%

17%

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2017 5
Exhibit 1.1 Fiscal Year 2017

National Economic and Tax Impacts of Federal HTC-Related Investment by State

State

Total 

Rehabilitation 

Costs

(in 2017 $ millions)

National Economic Impacts Tax Impacts

(in 2017 $ millions) Employment 

(Jobs)

(in 2017 $ millions)

Income GDP Output Local State Federal Total

Alabama $44.5 822 $28.2 $53.1 $73.1 $0.8 $1.2 $6.8 $8.8

Alaska 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Arizona 19.3 333 11.4 14.7 37.1 18.3 11.8 3.2 33.3

Arkansas 7.5 156 5.2 7.8 13.9 0.1 0.3 1.3 1.7

California 85.5 1,274 61.9 80.9 167.2 2.2 3.4 15.7 21.3

Colorado 0.2 16 0.2 0.2 0.5 0.0 0.0 0.0 0.1

Connecticut 160.0 2,288 111.3 154.7 292.4 8.4 7.1 25.6 41.2

Delaware 15.0 238 10.6 14.4 28.0 0.7 0.7 2.4 3.8

District of Columbia 95.1 1,381 64.1 86.7 167.4 6.4 2.6 13.0 21.9

Florida 13.4 234 9.5 12.8 25.1 0.7 0.4 2.3 3.4

Georgia 50.0 985 34.6 50.9 91.3 2.4 2.3 8.4 13.1

Hawaii 1.1 15 0.7 1.0 1.9 0.0 0.0 0.2 0.2

Idaho 12.0 228 8.1 11.6 21.5 0.3 0.3 1.8 2.4

Illinois 420.0 6,192 305.8 394.6 820.3 13.3 12.1 73.6 99.0

Indiana 39.0 683 27.8 37.5 74.4 12.8 8.6 6.6 28.0

Iowa 269.9 4,877 182.8 272.8 474.8 9.0 8.0 42.3 59.4

Kansas 67.3 1,223 47.1 65.2 124.8 15.9 11.1 10.8 37.8

Kentucky 142.7 2,732 98.8 139.6 261.3 14.3 11.4 22.7 48.4

Louisiana 385.7 6,814 274.9 360.2 730.6 13.5 14.0 63.3 90.8

Maine 83.5 1,266 49.1 73.7 160.0 3.8 3.5 13.2 20.5

Maryland 85.3 1,318 59.9 80.6 158.3 2.8 2.5 13.7 18.9

Massachusetts 438.2 5,694 307.5 412.6 816.0 11.7 14.1 70.7 96.5

Michigan 176.3 2,802 124.9 167.4 332.7 5.2 6.4 29.1 40.7

Minnesota 360.5 5,678 253.1 341.0 673.2 12.7 14.3 58.1 85.1

Mississippi 1.8 36 1.2 1.7 3.2 0.1 0.1 0.3 0.5

Missouri 262.8 4,502 187.4 248.3 499.6 7.3 8.3 43.5 59.1

Montana 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Nebraska 13.4 258 9.2 13.3 24.0 2.8 1.9 2.1 6.8

Nevada 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

New Hampshire 1.1 16 0.7 1.0 2.0 0.0 0.0 0.2 0.2

New Jersey 1.2 18 0.9 1.1 2.3 0.0 0.0 0.2 0.3

New Mexico 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

New York 1,137.5 18,818 810.5 1,082.5 2,140.5 73.7 62.5 195.5 331.7

North Carolina 86.2 1,615 60.7 86.4 161.5 2.1 3.0 14.7 19.8

North Dakota 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Ohio 488.7 8,778 348.0 481.5 928.0 21.2 17.9 84.8 123.8

Oklahoma 47.3 933 33.7 47.3 90.3 1.1 1.6 8.1 10.9

Oregon 9.7 172 7.1 9.3 19.0 0.3 0.3 1.7 2.3

Pennsylvania 367.7 5,977 266.9 353.8 717.0 12.3 10.4 64.7 87.4

Rhode Island 39.1 596 26.7 40.0 70.3 1.4 1.2 6.1 8.8

South Carolina 159.2 2,976 110.5 161.5 291.0 4.6 5.1 26.5 36.1

South Dakota 1.4 29 1.0 1.3 2.7 0.0 0.0 0.2 0.3

Tennesse 38.1 673 26.7 36.9 70.9 1.1 0.8 6.2 8.1

Texas 180.1 2,909 130.5 170.6 352.7 6.2 3.6 32.1 41.9

Utah 15.2 281 10.6 14.9 28.2 0.4 0.5 2.5 3.4

Vermont 10.2 181 7.4 9.7 19.6 0.4 0.5 1.7 2.6

Virginia 380.3 6,401 272.2 367.8 724.7 9.9 12.8 65.1 87.8

Washington 53.8 862 38.6 52.3 103.4 2.5 1.9 9.3 13.7

West Virginia 22.5 431 15.6 22.6 41.1 0.7 0.8 3.6 5.1

Wisconsin 180.9 3,149 128.2 176.3 339.9 6.4 7.3 30.5 44.2

Wyoming 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Totals $6,470.3 106,861 $4,571.9 $6,214.3 $12,177.9 $309.6 $276.7 $1,084.6 $1,671.0

SOURCE: Technical Preservation Services, National Park Service. Calculations by Rutgers University.

6 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
State

Total 

Rehabilitation 

Costs

(in 2017 $ millions)

National Economic Impacts Tax Impacts

(in 2017 $ millions) Employment 

(Jobs)

(in 2017 $ millions)

Income GDP Output Local State Federal Total

Alabama $140.7 2,545 $89.2 $167.9 $231.0 $2.4 $3.7 $21.4 $27.7

Alaska 0.1 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Arizona 80.0 1,351 47.2 60.8 153.8 75.8 48.9 13.3 137.8

Arkansas 101.2 2,034 70.4 105.1 187.2 2.0 3.7 17.0 22.7

California 1,078.3 15,275 781.7 1,021.0 2,109.7 27.3 43.5 198.0 268.8

Colorado 134.8 8,297 95.0 131.9 253.9 3.4 4.4 22.5 30.3

Connecticut 467.3 6,576 325.2 452.1 854.3 24.5 20.9 74.8 120.3

Delaware 57.0 868 40.3 54.9 106.7 2.6 2.8 9.0 14.4

District of Columbia 196.3 2,783 132.3 179.0 345.5 13.2 5.3 26.8 45.3

Florida 188.2 3,174 133.0 180.1 352.4 9.7 5.8 31.8 47.4

Georgia 207.1 3,965 143.6 211.2 379.0 9.8 9.6 35.0 54.2

Hawaii 1.7 23 1.1 1.6 3.0 36.3 42.8 157.4 236.5

Idaho 12.2 231 8.2 11.8 21.8 0.3 0.3 1.8 2.4

Illinois 2,035.8 29,007 1,482.0 1,912.6 3,975.8 64.5 58.6 356.6 479.6

Indiana 238.2 4,065 170.2 229.1 454.6 78.5 52.3 40.4 171.2

Iowa 719.3 12,647 487.0 726.8 1,265.1 24.0 21.3 112.7 158.3

Kansas 271.1 4,760 189.6 262.5 502.5 63.9 44.6 43.6 152.1

Kentucky 335.0 6,275 232.0 327.6 613.5 33.4 26.6 53.3 113.6

Louisiana 1,507.5 25,830 1,074.7 1,407.8 2,855.7 52.6 54.7 247.3 354.7

Maine 306.8 4,508 180.4 270.9 588.0 14.0 12.9 48.6 75.4

Maryland 715.2 10,701 502.1 675.3 1,326.9 23.2 21.0 114.5 158.7

Massachusetts 1,796.6 22,570 1,260.7 1,691.5 3,345.5 48.0 57.8 289.9 395.8

Michigan 891.6 13,699 631.6 846.2 1,681.8 26.5 32.1 147.2 205.9

Minnesota 1,289.0 19,649 905.0 1,219.2 2,407.0 45.4 51.1 207.8 304.3

Mississippi 94.9 1,898 66.0 93.7 174.7 7.2 5.7 15.3 28.2

Missouri 1,783.3 29,426 1,271.9 1,685.0 3,390.8 49.4 56.3 295.4 401.0

Montana 25.6 476 17.8 25.1 47.0 0.9 0.9 4.0 5.9

Nebraska 236.2 4,342 161.4 233.4 422.3 48.8 33.4 36.5 118.6

Nevada 1.3 19 0.9 1.2 2.4 0.0 0.0 0.2 0.3

New Hampshire 86.7 1,262 60.4 84.0 160.6 3.3 1.2 13.9 18.4

New Jersey 500.1 7,000 354.9 466.9 950.2 9.8 14.7 81.8 106.5

New Mexico 40.8 743 28.9 39.6 76.9 1.8 1.8 6.6 10.2

New York 3,339.8 53,978 2,379.7 3,178.3 6,284.6 216.4 183.5 574.2 973.9

North Carolina 790.8 14,434 557.1 792.1 1,481.3 19.2 27.7 135.1 182.0

North Dakota 17.2 291 12.0 15.9 31.8 0.6 0.4 2.5 3.5

Ohio 1,693.8 29,651 1,206.1 1,668.8 3,216.5 73.5 62.0 293.9 429.2

Oklahoma 373.5 7,133 266.1 373.2 713.3 9.1 12.8 64.1 86.0

Oregon 151.7 2,608 110.2 144.5 295.5 4.0 5.2 26.5 35.7

Pennsylvania 1,650.3 25,885 1,198.0 1,588.1 3,218.1 55.0 46.6 290.6 392.3

Rhode Island 392.0 5,774 267.3 401.3 704.9 14.2 12.3 61.1 87.8

South Carolina 288.6 5,327 200.3 292.8 527.5 8.3 9.3 48.0 65.6

South Dakota 13.1 255 9.3 12.0 24.5 0.3 0.2 2.0 2.7

Tennesse 131.0 2,247 91.9 127.2 244.2 3.7 2.9 21.3 27.9

Texas 508.1 8,022 368.2 481.4 995.3 17.4 10.1 90.6 118.4

Utah 36.5 661 25.5 35.8 67.7 0.9 1.2 6.0 8.1

Vermont 114.3 1,957 82.8 108.6 219.3 4.4 5.6 18.6 28.8

Virginia 1,564.3 25,535 1,119.4 1,513.0 2,980.7 40.6 52.6 267.9 361.1

Washington 253.1 3,957 181.6 246.0 486.4 11.8 9.1 43.8 64.5

West Virginia 50.1 938 34.7 50.3 91.4 1.5 1.9 8.0 11.2

Wisconsin 434.2 7,357 307.6 423.0 815.8 15.4 17.5 73.1 106.1

Wyoming 6.1 121 4.6 6.6 12.2 0.4 0.3 1.3 1.9

Totals $27,348.5 442,132 $19,367.2 $26,234.9 $51,650.8 $1,299.0 $1,200.0 $4,753.2 $7,253.0

Exhibit 1.2 Cumulative Fiscal Years 2013–2017

National Economic and Tax Impacts of Federal HTC-Related Investment by State 

SOURCE: Technical Preservation Services, National Park Service. Calculations by Rutgers University.

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2017 7
Exhibit 2.1 National Economic and Tax Impacts of Federal HTC-related Activity

FY 2017 (HTC Investment: $6.5 billion)

Gross Domestic Product by Sector from Federal Historic Preservation 

Investment $6,214 million, FY 2017 (millions of 2017 $)

Agriculture 19

Agri. Serv., Forestry, & Fish 33

Mining 85

Construction 2,009

Manufacturing 1,776

Transport. & Public Utilities 325

Wholesale 217

Retail Trade 385

Finance, Ins., & Real Estate 506

Services 833

Government 26

Income Created by Sector from Federal Historic Preservation Investment 

$4,572 million, FY 2017 (millions of 2017 $)

Agriculture 6

Agri. Serv., Forestry, & Fish 20

Mining 49

Construction 1,681

Manufacturing 1,068

Transport. & Public Utilities 174

Wholesale 204

Retail Trade 245

Finance, Ins., & Real Estate 286

Services 823

Government 16

Jobs Created by Sector from Federal Historic Preservation Investment 

106,861 jobs, FY 2017

Agriculture 301

Agri. Serv., Forestry, & Fish 524

Mining 958

Construction 38,081

Manufacturing 24,097

Transport. & Public Utilities 4,127

Wholesale 3,567

Retail Trade 12,831

Finance, Ins., & Real Estate 4,380

Services 17,615

Government 380

8 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
Exhibit 2.2 National Economic and Tax Impacts of Federal HTC-related Activity

FY 1978 through FY 2017 (HTC Investment: $144.6 billion)

Gross Domestic Product by Sector from Federal Historic Preservation Investment $158,124 million 

cumulative, FY 1978-2017 (millions of 2017 $)

Agriculture 493

Agri. Serv., Forestry, & Fish 898

Mining 2,492

Construction 46,350

Manufacturing 41,523

Transport. & Public Utilities 8,918

Wholesale 5,565

Retail Trade 11,362

Finance, Ins., & Real Estate 18,837

Services 20,942

Government 745

Income Created by Sector from Federal Historic Preservation Investment 

$116,353 million cumulative, FY 1978-2017 (millions of 2017 $)

Agriculture 215

Agri. Serv., Forestry, & Fish 555

Mining 1,421

Construction 38,062

Manufacturing 26,598

Transport. & Public Utilities 5,224

Wholesale 5,310

Retail Trade 7,197

Finance, Ins., & Real Estate 10,805

Services 20,490

Government 476

Jobs Created by Sector from Federal Historic Preservation Investment

2,548,033 jobs cumulative, FY 1978-2017

Agriculture 7,952

Agri. Serv., Forestry, & Fish 13,783

Mining 20,812

Construction 764,985

Manufacturing 531,691

Transport. & Public Utilities 98,816

Wholesale 88,204

Retail Trade 368,899

Finance, Ins., & Real Estate 177,439

Services 464,560

Government 10,891

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2017 9
History and Downtown Context

This two-story, brick, corner building, constructed in 1876, features arched 

windows, a decorative band of corbeling, and a distinctive parapet. It was 

originally a general merchandise store operated by James Allen. On the 

second floor, Allen established Florence’s first civic gathering spot, Allen’s 

Hall, as it quickly became known. At one time the building also served as the 

office of a local newspaper. The YMCA, the Masonic Lodge, religious and 

political groups all met at Allen’s Hall, and it was also the scene of weddings 

and other community celebrations. 

Devastating fires in both 1893 and 1896 gutted much of Florence’s 

commercial district. Although this building was damaged, it was not 

destroyed, and it was rebuilt serval years later, at which time Zeigler’s Drug 

Store was established. Pharmacist R.H. Zeigler, who also served as Mayor of 

Florence, operated the drug store for more than 50 years. People gathered 

here every Saturday to listen to Pete Thornell’s live, Super X radio broadcast 

on WOLS. 

Like many towns across the country in the last decades of the twentieth 

century, Florence’s downtown commercial district fell victim to suburban 

shopping malls. During this period a variety of tenants occupied the building, 

some of whom made alterations to the facade to “modernize” it, such as 

covering the building in pink stucco and replacing the arched windows with 

larger, rectangular ones. Eventually the building fell into complete disrepair 

and was vacant for many years until a group of local developers acquired it 

and several neighboring buildings in 2013. 

 

Zeigler’s Drug Store/Allen’s Hall

CASE STUDY #1

Florence, South Carolina

PROJECT PROFILE

Historic Name: Zeigler’s Drug Store/Allen’s Hall

Current Name: Town Hall Restaurant/Kress Corner

Original Construction Year: 1876

Original Use: General Merchandise Store, Drug Store, and 

Community Gathering Place

Rehabilitation Completed: 2017

New Use: Restaurant and Office Space

Total Project Cost: $3,839,986

Federal Historic Tax Credit Equity: $634,262

State Historic Tax Credit Equity: $569,483

SC Abandoned Building Tax Credit Equity: $569,483

City Grants/Incentives: $629,905

 ECONOMIC IMPACT ON FLORENCE 

“The Zeigler’s Drug Store historic 

rehabilitation into the Town Hall 

restaurant and upper-level office space 

is a key component that breathed 

new life into downtown Florence. The 

project provided momentum, attention and 

foot traffic to the development company’s 

neighboring apartment and rooftop bar 

historic redevelopment on the same block. 

Together with a handful of other historic 

tax credit redevelopments, a downtown 

renaissance is taking place in Florence. These 

historic projects are catalyzing investment 

and future development. Downtown 

Florence is becoming a regional destination, 

attracting both locals and travelers from 

the interstate, to the downtown area, for a 

unique but authentic experience.” 

— Ray Reich, Florence Downtown 

Development Director

Photo courtesy: Ken Jackson

10 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
PROJECT BUDGET

Sources of Funds Amount 

Bank Loan $1,320,256

Federal Historic Tax Credit Equity $634,262

State Historic Tax Credit Equity $569,483

SC Abandoned Building Tax Credit Equity $569,483

City Grants/Incentives $629,905

Developer Equity $116,597

Total $3,839,986 

Uses of Funds Amount 

Acquisition Costs $200,000

Construction Costs $2,569,345

Soft Costs $372,641

Deferred Developer Fee $698,000

Total $3,839,986

Scope of Rehabilitation 

After more than a year of planning, the New Florence Development Group 

began rehabilitation of the historic building. The stucco was removed to 

reveal the original brick façade that was repaired where necessary, cleaned, 

and restored. The original arched window openings were restored, and on 

the first floor the still extant cast-iron columns at the corner entrance were 

preserved and the storefront recreated based on historic documentation. On 

the interior, original pressed metal ceiling panels, hardwood floors, doors, and 

counters were refurbished. The lower level of the building was converted into 

Town Hall, a 5,800-square-foot restaurant, which specializes in serving locally 

grown ingredients and also has a large wood burning grill. The second level is 

occupied by a large real estate firm

Role of the Historic Tax Credit

According to the developer, the cost of renovating the historic Zeigler’s 

Drug Store, in comparison with the local rental market, would have been 

too risky. The tax credit equity was critical to the financing of the project. 

Equity investors were attracted to partner in the project by the ability to use 

the Federal HTCs, South Carolina HTCs and the South Carolina Abandoned 

Building Credit to offset their corporate tax liability. 

Photo: Lucas Brown, Kickstand Studio 

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2017 11
History and Downtown Context

The Equitable Building was constructed as the headquarters of the Equitable of 

Iowa Insurance Company. Built in 1924, the 19-story building stood for 49 years as 

the tallest building in Iowa. The Gothic Revival-style building’s outstanding feature, 

the rooftop lantern, with elongated arched windows, terra-cotta ornament, and a 

spire-like roof, is prominent in the Des Moines skyline. The Equitable Building was 

named one of the “50 Most Significant Iowa Buildings of the 20th Century” by the 

Iowa chapter of the American Institute of Architects. The last large-scale retailer, 

which had been in the building since its opening 83 years before, vacated the 

building in 2007. Foutch Bros. and Block Real Estate purchased the property in 2012 

out of foreclosure and began rehabilitation of the iconic building.

Scope of Rehabilitation

The rehabilitation created 146 residential rental units on the upper floors and 26,000 

square feet of commercial space on the first two floors. The building houses a Pot Belly 

Sandwich Shop, an office for an engineering company, a cell phone store, and other 

offices. On the exterior, the masonry was repaired and cleaned, and the entrance 

lobby with its original marble walls, staircase and floors, ribbed ceiling, and light 

fixtures was restored. The interior of the building was updated with new mechanical, 

electrical and plumbing systems. All the apartment units, which feature nine-foot-tall 

ceilings, have granite kitchen countertops, restored original terrazzo floors, and ceiling 

fans. Community amenities include a fitness room, community room, storage lockers, 

and a large rooftop patio, sometimes used for events and concerts. The building also 

provides direct access to the downtown skywalk on the second floor. 

Equitable Life Insurance 

Company of Iowa

CASE STUDY #2

Des Moines, Iowa

PROJECT PROFILE

Historic Name: Equitable Life Insurance Company 

of Iowa Building

Current Name: The Equitable Building

Original Construction: 1924

Original Use: Insurance Company Headquarters 

Rehabilitation Completed: 2016

New Use: Residential and Commercial

Total Project Cost: $38,627,762

Federal Historic Tax Credit Equity: $6,251,283

State Historic Tax Credit Equity: $6,483,563

Photos: Mirza Kudic

12 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
PROJECT BUDGET

Sources of Funds Amount

Bank Loan $19,694,500

Enterprise Zone Tax Credit Investment $1,565,777

Sales Tax Refund $589,257

Federal HTC Equity $6,251,283

State HTC Equity $6,483,563

Developer Equity $2,302,442

Deferred Developer Fee $1,740,940

Total $38,627,762 

Uses of Funds Amount

Working Capital and Reserves $1,132,263 

Acquisition $1,872,522

Hard Costs $26,572,312

Soft Costs $4,960,665 

Developer Fees $4,090,000 

Total $38,627,762

Role of the Historic Tax Credit

Given the level of risk associated with rehabilitating the Equitable 

Building, the developer acknowledges the project would not have 

moved forward without the use of historic tax credits. Because of the 

deteriorated condition of the building and the needed remediation 

of hazardous materials and fire damage, without leveraging upfront 

equity through the state and Federal historic tax credits the project 

would not have been financially feasible.

Economic Impact, Downtown Des Moines 

The rehabilitation of the Equitable Building has had a noticeable 

economic impact on downtown Des Moines. The use of historic tax 

credits allowed the developer to transform a building, underutilized or 

vacant for almost a decade, into a vibrant place for hundreds of people 

to reside and work. The apartments in the rehabilitated building are 

in high demand in the multi-family rental market in downtown Des 

Moines. The rooftop is a popular gathering place for residents and the 

resurgence of foot traffic around the 600 block of Locust Street during 

and after business hours, as a result of the rehabilitation of the Equitable 

Building and other nearby historic buildings, is a catalyst for small 

businesses and other redevelopment in the neighborhood.

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2017 13
History and Downtown Context

The Owyhee Hotel was well known regionally and a familiar resting place for travelers between Seattle, Portland, and 

Salt Lake City in the early part of the twentieth century. Located in the Lower Main Street Commercial Historic District in 

downtown Boise, the Owyhee’s rooftop garden was a popular gathering place, and the ballroom, which could accommodate 

up to 300 persons, was a favorite location for large gatherings, weddings, and special events. The Owyhee was part of the 

wave of development in downtown Boise that resulted after the construction of the Oregon Short Line rail passenger and 

freight depot and the establishment of the Rapid Transit Company, which opened a street car line on Main Street in 1891.

The architectural firm of J.E. Tourtellotte and Company was retained for the design of the Owyhee and was later joined by 

R.T. Newberry of Chicago, a consultant with expertise in hotel design. The six-story Owyhee, with a brick and stone exterior, 

locally pioneered the use of the steel-frame construction and was credited with having inaugurated the “skyscraper era” 

in Boise. Until it was purchased by developers, Local Construct & Clay Carley, the Owyhee languished. It was converted to 

office and commercial space in the 1970s but operated at a fraction of its potential and sat mostly vacant.

Scope of Rehabilitation

When Local Construct & Clay Carley acquired the building with the intent of rehabilitating it for residential use, the interior 

had been significantly altered in the 1970s remodeling of the hotel for new use. A goal of the rehabilitation was to uncover 

and restore as much as possible of the historic character, materials, and fixtures that had been diminished or covered by the 

prior remodeling. The rehabilitation work on the exterior included: restoring the historic sandstone that distinguishes the 

ground level of the building, installing a compatible new storefront based on historic photographs, replacing the windows 

that were too deteriorated to repair with compatible new ones, and reopening those windows that had been bricked 

in previously. Early in the project, during the removal of the 1970s interior alterations, historic features were uncovered, 

including original tiling, ornate columns in the hotel lobby, and a fireplace previously enclosed in drywall. All these features 

were retained and repaired as part of the rehabilitation, which converted the former hotel into 36 apartments, office, retail 

and commercial spaces, and a new ground-floor restaurant. The completed rehabilitation is a building with a beautiful 

exterior that reflects the Golden era of Boise’s past and an interior that retains key historic features, while integrating 

contemporary needs and finishes, and that projects a bright future for Boise. 

Owyhee Hotel 

CASE STUDY #3

Boise, Idaho

PROJECT PROFILE

Historic Name: The Owyhee Hotel

Current Name: The Owyhee

Original Construction: 1910

Rehabilitation Completed: 2016 

Original Use: Hotel

New Use: Mixed Use - Residential, Retail, Office, Commercial 

and Event Space

Total Project Cost: $22,205,000

Federal HTC Equity: $2,250,000

Local Redevelopment Agency Credits: $775,000

Photos: Laure Joliet

14 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
PROJECT BUDGET

Sources of Funds Amount

Limited Partner Equity $7,500,000

Bank Construction Financing $11,680,000

Federal Historic Tax Credit Equity $2,250,000

Local Redevelopment Agency 

 Credit Equity $775,000

Total $22,205,000

Uses of Funds Amount

Acquisition Costs $3,550,000

Direct Construction Costs $16,000,000

Indirect Construction Costs $2,355,000

Financing Costs $300,000

Total $22,205,000

Use of the Historic Tax Credit

The historic tax credit was instrumental in the economic viability of the Owyhee 

rehabilitation. Without the historic tax credit, it is unlikely the ownership group 

would have undertaken a project with such uncertainty and risk. For example, 

during the rehabilitation, the owner discovered that each floor was layered 

with asbestos, an original fireproofing treatment, which allowed the hotel to be 

advertized as “entirely fireproof” when it first opened. This hazardous material 

had to be removed at considerable expense. Many unforeseen challenges like this 

are common in the rehabilitation of older buildings, which can often significantly 

increase the cost and risk. Without the historic tax credit, such unexpected costs 

might not have been covered by the project budget.

Economic Impact on Boise 

Located in the west end of downtown, the hotel was in an area that had 

experienced little new investment in recent decades and was surrounded by 

many underutilized and undeveloped properties. The rehabilitation of the 

Owyhee, however, has enlivened this area and spurred significant new investment 

by neighboring property owners. Nearby, two 3-star hotels have opened and 

a new residential condominium project has been completed. In addition, an 

office complex has been proposed only a few blocks away. In total, the area has 

experienced over $100 million of new investment since construction began on the 

rehabilitation of the Owyhee in 2014. 

Not only has The Owyhee itself regained its stature as a premier community 

gathering space, but because it is now “home base” to Treefort Music Fest, 

a five-day music festival, it attracts more than 30,000 visitors and 400 bands 

to the city each year. The start-up technology firms, financial institutions, and 

other businesses that occupy office space in The Owyhee, and a restaurant that 

serves the downtown business community, also contribute to the resurgence of 

downtown Boise. 

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2017 15
PROJECT PROFILE

Historic Name: Houma Elementary School

Current Name: Academy Place Apartments

Original Construction Year: 1931

Year Rehabilitation Completed: 2017

Original Use: Elementary School

New Use: Mixed-Income Senior Housing

Total Project Cost: $19,739,366

Federal Historic Tax Credit Equity: $1,953,908

State Historic Tax Credit Equity: $2,028,025

Bank Loan: $2,700,000 

LIHTC Equity: $7,406,550 

Terrebonne Parish Council on Aging: $5,500,000

Houma Elementary School 

CASE STUDY #4

Houma, Louisiana 

 

History and Context 

Constructed in 1931, Houma Elementary School last welcomed students in 1970, and 

then housed school district administrative offices until 2014. School officials conveyed 

the vacant building to the Terrebonne Parish Consolidated Government, which issued 

an RFP for redevelopment of the property. Renaissance Neighborhood Development 

Corporation (RNDC) was selected to rehabilitate the property into much-needed 

mixed-income housing for seniors. The New Orleans-based RNDC is a non-profit 

affordable housing developer and a collaboration between Volunteers of America 

National Services and Volunteers of America, Southeast Louisiana. 

Scope of Rehabilitation

The 103-unit rehabilitation project consisted of converting the school into 47 

apartments, and constructing 56 new apartments in a compatible new addition at 

the rear of the property. The original nine-over-two windows were retained and 

repaired as part of the conversion of the building into apartments. The apartments 

were sensitively incorporated into the former classrooms that still have the original 

11-foot-high ceilings. Important character-defining interior features and spaces were 

retained, most notably the corridors with their distinctive beaded-board wainscoting, 

over-the-door transoms, and glazed windows that supply borrowed light into the 

corridors. Historic stairs were retained, as well as the historic wood floors throughout 

the building. Mature live oak trees remain and highlight the site’s new landscaping. 

Photos: Michael Palumbo Photography

16 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
PROJECT BUDGET

Sources of Funds Amount

Bank Loan $2,700,000

LIHTC Equity $7,406,550

Federal HTC Equity $1,953,908

State HTC Equity $2,028,025

Volunteers of America $25,000

Developer Equity $125,883

Terrebonne Parish 

 Council on Aging $5,500,000

Total $19,739,366

Uses of Funds Amount

Acquisition Costs $16,366

Construction $14,892,956

Equipment $205,871

Soft Costs $3,315,075

Subtotal $18,430,268

Financing and Perm Loan Costs $717,386

Total Tax Credit, Syndication Costs

 and Reserves $591,712

Total Development Costs $19,739,366

Role of the Historic Tax Credit

The Federal historic tax credit was crucial to the success of the rehabilitation 

project. The state historic tax credit also figured prominently, as did the 

other sources of funding from Low-Income Housing Tax Credits (LIHTC), 

Terrebonne Council on Aging, Volunteers of America, and private bank 

loans. The developer, Renaissance Neighborhood Development Corporation 

(RNDC), referring to the importance of the historic tax credit to the outcome 

of the project, stated “We believe each project has its own opportunity 

to create a special living experience not found in the typical market for 

affordable or even market-rate housing. With its wonderful historic character 

and features, Academy Place provides such an experience, and is very much 

appreciated by the residents.”

Economic Impact on Houma

The development of Academy Place Apartments has been a boon to the 

community, which was severely lacking in available senior housing. The 

project has returned a vacant building once again to active use in the Houma 

community. Several former teachers and students have come back to live in 

their old school and, like their fellow residents, enjoy the convenience and 

the walkability of the neighborhood, which is close to downtown Houma. 

The building is now individually listed in the National Register of Historic 

Places and has been returned once again to active use in the community. 

The project is also Enterprise Green Communities-certified.

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2017 17
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

http://bloustein.rutgers.edu/

ejb@policy.rutgers.edu

Technical Preservation Services

National Park Service

U. S. Department of the Interior

Washington, DC 20240

https://www.nps.gov/tps/

September 2018

2 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY