(From THE INSIDER, 12/08/14)
Gov. Pat McCrory said Thursday he needs help impressing upon legislators the importance of the expiring Historic Rehabilitation Tax Credit as the 2015 session nears, adding he was “not pleased” with lawmakers who left the program to sunset. It’s kept North Carolina’s venerable buildings in handsome shape, he said, giving visitors great first impressions needed for pride and economic development alike. The state tax credit, timed to expire at the end of this month, didn’t win extension in this year’s legislative session as lawmakers either opposed the concept or sought more knowledge about its impacts to the state’s overhauled tax system (which relies in part on letting temporary tax credits expire). But a modified version of the credit had traction in the final weeks and supporters want it back in play when the General Assembly reconvenes next month.
“I’m going to need your help on that,” McCrory told members of the rural-focused Golden LEAF Board on Thursday. “You know, in small-town North Carolina, the appearance of the strength of the town, the centers of town, shows the strength of the region. And you’ve got old historic buildings that are empty and blighted, and yet we’ve got potential investors who want to revitalize that, and we’ve had that. Why? Because of historical tax credit. That was eliminated in this legislative session, and we’ve got to bring it back.” The expiring program offers tax credits on the costs of restoring old properties. A 20 percent tax credit offered on income-producing structures is pairable with a federal tax credit also worth 20 percent, making for a combined 40 percent break. A modification the governor proposed last session would reduce the state’s credit for income-producing properties to 15 percent of expenses up to $10 million and 10 percent for expenses between $10 million and $20 million. For historic homes, the base credit would be 15 to 20 percent of expenses up to $200,000. (Benjamin Brown, THE INSIDER, 12/08/14).