Preservation Iowa is working with a nationwide coalition and our statewide partners in cities, chambers of commerce, Main Street organizations, building owners, redevelopers, and elected officials to educate Iowa Congressional members and staff about the positive economic impact of historic rehabilitation.

Iowa communities are already experiencing the economic stimulus and job creation from the over $200 million worth of historic rehabilitation projects started in our state since the legislature increased the state income tax credits from $20 million per year to $50 million per year in 2009 (this cap was reduced to $45 million in 2010). The map to the right shows the state historic tax credit projects completed or in-progress as of February 2010.

Many more properties are eligible for state and federal historic tax credits. There are over 10,000 historic properties in Iowa that are listed on the National Register of Historic Places. Thousands more are eligible for listing on the National Register. To see the distribution of National Register properties in Iowa, download this map ( 463.14 KB).

The following links explain the positive economic impact of the proposed federal legislation to add a historic homeowner income tax credit and make needed changes to the commercial historic income tax credit program.

Report on the Economic and Job Creation Impact of Legislation to Expand The Federal Historic Preservation Tax Credit (By Philip Estep) ( 71.05 KB)

Expanding the Federal Historic Preservation Tax Credit H.R. 3670 and H.R. 3715 ( 45.35 KB)

Disaster Recovery and Historic Tax Credits

In March 2010, Novogradac & Company, LLP published an article in their Journal of Tax Credits on how tax credits can be used to help in disaster recovery. Preservation Iowa's president Rod Scott provided information to Novogradac about the use of tax credits in Iowa as part of recovery from the 2008 storms and flooding. Historic tax credits can be used to offset the cost of cleanup and rehabilitation above and beyond any assistance provided by insurance or federal disaster recovery grants. Download the Novgradac article:

Historic Tax Credits Provide Boost for Disaster Area Rehabilitations ( 204.21 KB)

At the federal level, the available tax credit in the Midwestern Disaster Area was raised in 2008 from 20% to 26% of qualifed rehabilitation costs. This mirrored a similar change to the federal historic tax credit program that was put in place in 2006 following Hurricanes Katrina, Rita, and Wilma in the Gulf states. This 26% figure is only available in declared disaster counties and only through December 31, 2011. In addition, the 10% credit on rehabiliation of non-historic, non-residential properties built before 1936 was raised from 10% to 13%. Find out more in IRS Publication 4492-B.

At the state level, a dedicated disaster recovery fund has been carved out of the Iowa Historic Preservation and Cultural and Entertainment District Tax Credit Program. Of the $45 million of available tax credits each year, 20% ($9 million) is available specifically for buildings affected by any state- or federally declared disaster beginning in 2008. Find out more at the SHPO website.