PRESS RELEASE: Atkins’ Tax Credit for Historic Preservation Passes Assembly
Atkins’ Tax Credit for Historic Preservation Passes Assembly
SACRAMENTO – The California State Senate has passed SB 451, legislation by Senate President pro Tempore Toni G. Atkins (D-San Diego), to establish a tax credit for the preservation and rehabilitation of historic buildings in California. SB 451 passed out of the Legislature unanimously.
“Tax credits for the preservation and rehabilitation of historic buildings will increase construction and building industry job creation, increase property tax revenues through higher property values, and lead to higher local tax revenues through sales tax and heritage tourism,” Atkins said. “The tax credit SB 451 provides will be a much-needed spark to reinvigorate investment in our communities.”
Studies show that a third of the initial cost of a historic preservation credit is paid back during the construction phase of the project, prior to the issuance of any credit. Furthermore, these credits stimulate local economies, revitalize downtown areas and communities, promote and increase the supply of affordable housing, support smart growth through infill development, and leverage use of the federal rehabilitation tax credit. Currently, 35 states offer incentives, many similar to the federal program.
SB 451 would provide for a 20 percent to 25 percent tax credit toward rehabilitation expenses if the historic structure or qualified residence meets a specific set of criteria. SB 451 also contains transparency and accountability measures, including an annual cap and reporting requirements. To qualify, a property must be on the National Register of Historic Places or the California Register of Historical Resources.
Toni G. Atkins is President pro Tempore of the California Senate. Having previously served as Speaker of the California Assembly, she began her tenure in the Senate in 2016. As Senator for District 39, she represents the cities of San Diego, Coronado, Del Mar and Solana Beach. Website of President pro Tempore Toni G. Atkins: www.senate.ca.gov/Atkins