Gov. Jeff Landry’s plan to weaken or eliminate the Louisiana state historic rehabilitation tax credit program would deal a blow to economic development and preservation efforts across the state. The Louisiana Rehabilitation of Historic Structures Tax Credit Program — commonly called the state historic tax credit — reimburses commercial property owners up to 25 percent of expenses from renovating a structure in a National Register, downtown development or cultural district and up to 35 percent in rural areas.
Since the program’s creation in 2002, it has been used to restore more than 1,800 structures throughout the state, including many important projects in New Orleans, such as the World Trade Center, the Dew Drop Inn, Café Reconcile, and Sophie B. Wright School, among many others.
Without the tax credit, these historic buildings likely would never have been renovated, and even more blighted structures would remain in neighborhoods across the state. Instead, these buildings now are back in commerce, generating tax revenue for the city and state.
The Louisiana Legislature will take up this issue beginning this week in a special session.
Please contact your legislators today and ask them to keep this important legislation that drives so much economic development across Louisiana.
You can help
Click the link below to send the following letter to your representatives and ask them to keep this important legislation that drives so much economic development across Louisiana.
EMAIL MY LEGISLATORS NOW
Dear State Legislator,
As a champion of historic preservation, I am deeply concerned that Gov. Landry’s proposed tax reforms could diminish or eliminate the Louisiana Rehabilitation of Historic Structures Tax Credit Program, commonly called the state historic tax credit (La. R.S. 47:6019). Preserving and revitalizing historic buildings directly impacts our economy and quality of life in New Orleans and throughout Louisiana.
The state historic tax credit program is admired nationwide for its power to revitalize communities, breathe new life into struggling downtowns or small-town Main Streets, and bring blighted buildings back into commerce. The successful historic tax credit program in Texas, for example, was modeled after Louisiana’s program.
Historic tax credit projects have led to billions of dollars in investment across Louisiana. In New Orleans, projects across the city have been made possible because of the historic tax credit and now help to drive the economy and further investment in our city; just a few examples include the Saenger Theater, the Four Seasons Hotel, Sophie B Wright School, and the Dew Drop Inn, among many others. While these larger projects often dominate the spotlight, over half of the projects that have used the Louisiana historic tax credit were for small businesses, with less than $500,000 in total costs.
In a city that struggles to create enough affordable housing, the historic tax credit has been used to renovate old schools into affordable apartments and to revitalize multi-family homes. A great example is the former Holiday Inn in New Orleans East, which sat blighted for years before it was converted into Highrise NOLA, modern apartments with sought-after amenities for working-class residents.
Louisiana profits significantly from this work; the state sees an almost $9 return in economic activity from every $1 spent on the credit. Studies show that $0.46 comes back to the state as revenue before that $1 is even spent.
If this program is weakened or killed, multiple projects in New Orleans will stop immediately: the renovation of the former Market Street Power Plant on Tchoupitoulas Street and the former Naval base facility in Bywater, the restoration of St. Louis Cathedral, and redevelopment of the former Charity Hospital, to name a few. Without this program, there are so many buildings that will never get the chance to be rehabilitated.
Since 2011, there have been more than 1,879 projects that have utilized the Louisiana historic tax credit, leading to more than $7.1 billion in private investments in the state. The program has been instrumental in revitalizing our communities, preserving our rich cultural heritage, and stimulating economic growth. By leveraging the state historic tax credit with the federal historic tax credit created under President Ronald Reagan in 1981, the state program has spurred the creation of thousands of jobs, restored many of our historic buildings and Main Streets, and rebuilt our communities in thoughtful and cost-efficient ways.
I respectfully ask you to prioritize the preservation of the Louisiana Rehabilitation of Historic Structures Tax Credit Program in the upcoming special session. Thank you for your attention to this important matter, and for your ongoing commitment to preserving Louisiana.
