​The National Park Service announced a final decision on their December 2023 proposal to demolish 19 historic buildings in the New River Gorge National Park and Preserve in West Virginia. PAWV placed these historic sites on the West Virginia Endangered Properties List in early 2024 and has served as a consulting party with many others to advocate for the saving of these irreplaceable historic sites. Many may remember that the Park proposed 3 options for how to handle these buildings:

• Alternative A: No Action
• Alternative B: Demolish All Proposed Excess Historic Structures (their preferred option)
• Alternative C: Retain Proposed Excess Historic Structures with High Potential for Reuse – this included 3 structures originally (the Marilyn Brown House, the Thurmond Ice House, and the Dun Glen Ark.)

On July 18th, the Park announced that it chose Alternative C with minor modifications to consider 3 other buildings for retention with the option to lease: the Tom Kelly House, the Dun Glen Boat Storage Rack, and the Dun Glen Mini Ark.

The Preservation Alliance of West Virginia is encouraged by the National Park Service’s decision to compromise on the proposed demolitions by retaining and offering leasing opportunities for several historic properties. While we remain disappointed that the Prince Brothers Store and Dun Glen Hotel site were not included in the leasing pool, this outcome represents a meaningful win for public advocacy and historic preservation. The door is now open to save and restore more irreplaceable sites for future generations. We are grateful for this progress and are now focusing our efforts on understanding the leasing process to support the public in developing strong proposals for the rehabilitation and reuse of these important buildings.

​You can read the full decision at the National Park Service's website. 

Last week, the West Virginia Legislature passed legislation that improves the 25% State Historic Tax Credit (HTC) in West Virginia, and it is now on its way to the Governor's desk. 
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House Bill 4568 (known as Phased Rehabilitations of Certified Historic Structures) achieves multiple goals such as:

• Allowing the state HTC to be taken in phases, which is known as “phased rehabilitations”,
• Allowing the recapture of HTCs,
• Requiring the issuance of HTC certificates based on issuance of Phase Advisory Determination, bringing the state program in line with the federal HTC program, and
• Eliminating all caps to the state historic tax credit and associated rules, guarantees, and restrictions related to caps and allocations. These were outlined in the original 2017 legislation that increased the tax credit from 10% to 25% and included:
  • The per project cap of $10 million for a certified rehabilitation project;
  • The annual cumulative cap of $30 million in tax credits issued per fiscal year;
  • The “smaller project” allocation that was originally intended to ensure smaller projects (those under $500,000) received tax credits

If signed into law by Governor Justice, this legislation will become effective on July 1, 2022. What this means for West Virginia is that completing HTC projects just got a little simpler. The three-part application for the state and federal HTCs (which when combined total 45%) will be a more fluid process when working with the West Virginia State Historic Preservation Office and the National Park Service because the agencies will now follow the same procedural rules, thus minimizing paperwork requirements. Equally as important, removing the limitations on allocations and guarantees of historic tax credits will make it more secure and improve investor confidence when undertaking both larger and smaller projects.

This is a major win for West Virginia! These provisions increase the Mountain State’s attractiveness from industry-based development firms that specialize in HTC-backed projects, in addition to making the program more user-friendly for individuals wanting to undertake smaller projects. Neighboring states have more restrictive programs, making West Virginia a very investor-friendly state for HTC projects in the mid-Atlantic region. For instance, Maryland has a 20% state HTC that is capped at $3 million per project with a $9 million annual cumulative cap per fiscal year. Pennsylvania and Ohio both have a 25% state HTC, but they have $5 million annual cumulative cap per fiscal year.

HB 4568 was sponsored by Delegates Jason Barrett (R-61), Eric Householder (R-64), Erikka Storch (R-03), Vernon Criss (R-10), Paul Espinosa (R-66), Daniel Linville (R-16), Joe Ellington (R-27), Ruth Rowan (R-57), Clay Riley (R-48), Dianna Graves (R-38), and John Hardy (R-63). The Alliance appreciates their support and would also like to thank the leadership and policy expertise provided by the Abandoned Properties Coalition and their long-term dedication to seeing West Virginia’s state historic tax credit improved.
 
The Preservation Alliance of West Virginia is the statewide, grassroots nonprofit dedicated to historic preservation. The Alliance has been working as a member of the Abandoned Properties Coalition since 2016 to improve the state HTC to include the provisions outlined in HB 4568.

For inquiries regarding usage of the West Virginia commercial HTC, contact the West Virginia State Historic Preservation Office’s Tax Credit Coordinator, Meredith Dreistadt at [email protected]. 

West Virginians are invited to celebrate their historic preservation success stories through the Preservation Alliance of West Virginia’s new West Virginia Preservation Spotlight series. ​

Come to Virtual Morning Coffee with the Preservation Alliance of West Virginia, the National Trust Community Investment Corporation, and the National Trust for Historic Preservation.
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Join us at 9am on Thursday, December 16th, for a news brief where we’ll discuss an opportunity to improve a crucial tool for redeveloping West Virginia’s downtowns and incentivizing the re-use of vacant buildings - the historic tax credit. A total of 122 Federal Historic Tax Credit projects in West Virginia between fiscal year 2001 through 2020 has leveraged an estimated $258,016,381 in total development.

During the news brief, we will share a legislative update, how to take action and how potential improvements to the historic tax credit can benefit local community development by maximizing the long-term impact and sustainability of current federal funding opportunities for community projects by incentivizing private sector investment.
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Register here https://savingplaces-org.zoom.us/meeting/register/tJ0lf-6rrDwsHtUg7nddSrjOJqOE8i9b3ibZ

West Virginia has made its historic tax rehabilitation credit program permanent. Gov. Jim Justice recently signed the bi-partisan bill, which provides a 25% tax credit for those who rehabilitate historic income-producing properties. 

The 25% credit, which became law in 2018, was set to expire at the end of 2022. In those five years, the program attracted renewed interest in West Virginia’s historic commercial districts and spurred private reinvestment in more than 80 vacant and dilapidated buildings throughout the state. In just two of those years, more than $34 million were invested in nine projects.

The move to a permanent 25% credit provides needed certainty to property owners and developers, explained Renee Kuhlman, Senior Director at the National Trust for Historic Preservation. The 25% credit often fills a financing gap in a project, but the uncertainty around its future made it difficult for developers to successfully apply for construction loans or plan long-term projects.

“The removal of the sunset date increases the attractiveness of the credit to investors,” Kuhlman said. “Already, I’ve received a call from a New Orleans developer wanting information about West Virginia properties because the program was made permanent.”

Without this tax credit, many historic redevelopment projects would not happen, explained Danielle Parker, executive director of the Preservation Alliance of West Virginia, a statewide organization dedicated to supporting and promoting historic preservation. The 25% credit is often the reason a project becomes feasible.
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"There are over 1,000 properties, including 168 historic districts, that can be revitalized using the credit, and I am excited to see how these places can be brought back to life using this financial incentive,” Parker said.
The state historic tax credit is capped at $30 million of income tax credits per year. The program also offers a 20% residential rehabilitation credit for historic homes, which is also permanent.

The State Historic Tax Credit is administered by the WV Historic Preservation Office, and the National Parks Service. For more information on applying for the credit or to find out if your property is an eligible tax credit project, please call 304-558-0240. You can also Visit the WV Historic Preservation Office's website for additional information.

​Thank you to Senator Ryan Weld for being the original sponsor of this legislation and for being a champion of historic preservation and community revitalization for West Virginia! 

We want to say thank you to the legislation's co-sponsors too! They are Senators Mike Woelfel, Robert Plymale, Richard Lindsay, Eric Nelson, Stephen Baldwin, Mike Maroney, and Glenn Jeffries.

Special thanks to Delegate Erikka Storch for supporting this bill through  the House of Delegates and to the Abandoned Properties Coalition for leading the charge to make the 25% state historic tax credit permanent.