Rutgers University has released its Annual Report on the economic impact of Federal Historic Tax Credit for fiscal year 2014, concluding that the credit is a “strategic investment that works.”
A few key highlights from the report:
“In FY 2014, HTC-related investments generated approximately 78,000 jobs, including 27,000 in construction and 18,000 in manufacturing, and were responsible for $4.6 billion in GDP, including $1.5 billion in construction and $1.3 billion in manufacturing. HTC-related activity in FY 2014 generated $3.4 billion in income, with construction ($1.2 billion) and manufacturing ($799 million) reaping major shares.”
“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 2014) support this conclusion.
• An inflation-adjusted (2014 dollars) $22.6 billion in HTC cost encouraged a five times greater amount of historic rehabilitation ($117.6 billion).
• This rehabilitation investment generated about 2.5 million new jobs and billions of dollars in total (direct and secondary) economic gains.
• The cumulative positive impacts on the national economy included $271.4 billion in output, $134.1billion in GDP, $98.6 billion in income, and $39.3 billion in taxes, including $28.6 billion in federal tax receipts
• The leverage and multiplier effects noted above support the argument that the federal HTC is a strategic investment that works.”
To read the full report via Novogradac & Company, LLP, click here.