Preservationists and developers in Pennsylvania are hopeful for new state funding aimed at revitalizing historic buildings. Two recently introduced bills propose a significant increase in the annual cap for the state’s Historic Preservation Tax Credit program, a crucial subsidy for developers transforming vacant historic properties on the National Register of Historic Places.
Currently, Pennsylvania’s program is capped at $5 million, which advocates argue is insufficient to meet demand. This low cap discourages developers and endangers irreplaceable properties. Pennsylvania ranks among the lowest in the nation, with only three states offering less funding annually for historic preservation.
A bipartisan measure in the Senate aims to increase the program’s cap to $50 million, aligning Pennsylvania with New Jersey and surpassing Maryland and Delaware. A companion bill in the House proposes raising the cap to $20 million. Both measures have progressed through their respective legislative processes without significant opposition.
Proponents of the increased funding, like Paul Steinke of the Preservation Alliance for Greater Philadelphia, highlight the program’s economic benefits. The tax credit program stimulates job creation and generates tax revenue by bringing vacant properties back into productive use, benefiting cities and towns across the state.
Developers also find the program financially low-risk, as the tax credits are only awarded upon project completion, allowing the credits to secure additional financing needed for construction. Successful projects, such as the transformation of a historic brewery in Philadelphia into a mixed-use development, showcase the potential for these credits to revitalize blighted areas and preserve the state’s historic fabric.