By Nicole Marrocco / WV Community Development Hub

​Little excites me more than a community finding a modern use for a historic building.

Nerdy, I know.

But just check out this church turned indoor rock gym, gas station turned restaurant, and bank turned grocery store, and I guarantee you’ll be geeking out over the untapped potential of abandoned and underperforming historic buildings alongside me.

Historic tax credits make it possible to revitalize historic properties that have a financing gap between what banks will lend and the total cost of rehabilitation.

Developers restoring income-producing (i.e. commercial, industrial, agricultural, or rental-residential) buildings listed on the National Register of Historic Places or certified by the National Parks Service can apply for personal or corporate net income tax credits from West Virginia worth 10 percent of rehabilitation expenses.

Unfortunately, West Virginia’s 10 percent rate just isn’t cutting it — especially considering all of our neighboring states have either a 20 or 25 percent historic tax credit rate. Developers are wary of rehabbing buildings here because the risk is so much higher compared to places just across the state border.

Over the last few months, the Revitalize West Virginia’s Downtowns Coalition (including Generation West Virginia) has been advocating to increase the rate to 25 percent to make our state’s historic districts more attractive to developers and spur private investment.

Read the full UpThink to find out why — as a young person living in West Virginia — I believe an increased historic tax credit rate is a game-changer.

By Joselyn King / The Intelligencer

WHEELING — The West Virginia House of Delegates passed its version of a revenue bill Friday on what was the sixth day of a special legislative session in Charleston called for setting the state’s 2018 budget.

Despite a long agenda of proposed amendments, House Bill 107 was approved with few changes from the measure passed Thursday by the House Finance Committee. It would maintain West Virginia’s consumer sales tax at 6 percent, but would eliminate sales tax exemptions on cellphone services. It also would make no changes to the state’s coal and gas severance tax rates, but would gradually eliminate all taxation of Social Security within the next three years.

Read the full story, including more about the historic tax credit, at theintelligencer.net.

By Ashton Marra / WV Public Broadcasting

Members of the House are standing their ground when it comes to tax reform. At least, that’s what House Speaker Tim Armstead said Friday after a vote in the chamber on its own version of a revenue bill.

The bill does not include any of the changes to the personal income tax Senate Republicans and Gov. Jim Justice have agreed to, but Armstead said that doesn’t mean his chamber isn’t still willing to work on a compromise.

Members of the House voted 74 to 17 in favor of the tax bill negotiated between House Democrats and Republicans.

It brings in an estimated $100 million in additional revenue to close a budget gap in the 2018 fiscal year, which isn’t enough according to members of the chamber, but is a start.

Read the full story, including more about the historic tax credit, at wvpublic.org. 

Although the main order of business is to pass a budget, Governor Jim Justice has made it a priority to also include increasing the state’s historic tax credit to the agenda, and we’re really excited about it.

Increasing the state’s historic tax credit to 25 percent will help spark new development in West Virginia’s historic downtowns. As the statewide organization dedicated to attracting and retaining young people in the Mountain State, we know that quality of place is a driving factor for young people in choosing where they want to live and work. Young people want to be where the action is and an increase in historic tax credit will help West Virginia build walkable, vibrant communities that are especially attractive to the next generation.

Check out the special session update from Generation West Virginia.

After receiving widespread bipartisan support during the regular session, historic tax credit legislation ultimately failed on the final day of regular session.

​But now we have another chance to increase the state’s historic tax credit, and we need your help to do it. If revitalizing your downtown is a priority to you, let your representatives know by clicking here. ​

​In President Trump’s FY2018 budget, he proposes to eliminate funding for the National Heritage Areas.  The 49 National Heritage Areas across the country – two of which are in West Virginia (Wheeling and Coal) – preserve and revitalize cultural, historic and natural resources, delivering recreational and educational opportunities to visitors, residents and entire regions. Through innovative public-private partnerships, National Heritage Areas have effectively leveraged federal resources, attracting an average of $5.50 of private funding for each dollar appropriated.

Heritage Areas have a proven record of fostering job creation and advancing economic, cultural, historic, natural, and community development. In addition to creating jobs, National Heritage Areas generate valuable revenue for local governments and sustain communities through revitalization and heritage tourism. Lastly, Heritage Areas have undergone rigorous independent evaluations by the National Park Service which document the program’s worth.

Please join PAWV in calling your Congressmen by March 24 and request that they ask appropriators provide robust funding for the National Heritage Area program in the FY 18 budget. Robust funding for this critical initiative will enable communities and regions to effectively tell the stories of their past for the benefit of present and future generations.

District 1 – Congressman David McKinley – (202) 225-4172
District 2 – Congressman Alex Mooney – (202) 225-2711
District 3 – Congressman Evan Jenkins – (202) 225-3452

You can also encourage your Congressman to co-sponsor HR 1002 – National Heritage Area Program Bill, which would establish a designated program for National Heritage Areas within the National Park Service, including clear criteria for designation and evaluation. According to the bill sponsors, Congressmen Charles Dent (R-PA) & Paul Tonko (D-NY), “National Heritage Areas are considered one of the Department of the Interior’s most cost effective initiatives, relying on a public/private partnership in which every federal dollar is matched with an average of $5.50 in other public and private financing.”

In Governor Justice’s FY2018 Recommended Budget (SB 199 and HB 2018) all Division of Culture & History programming that comes from the state Lottery Education Fund (fund 3534 in the budget) will be eliminated. Programs that are made possible through the state Lottery Education Fund include the following appropriations (numbers reference line items in the budget):

• 09200 – Preservation WV (used to promote local community events)
• 31100 – Historic Preservation Grants (also known as Development Grants)
• 12200 – Fairs & Festivals
• 62400 – Grants for Competitive Arts Programs

Defunding these will cause a major detriment to economic development and cultural heritage tourism in West Virginia.

What you can do to help?

Currently the Senate Finance Committee and House Finance Committee are working on their own FY2018 budget proposals.

Contact committee members and ask them to include funding for these line items in their budget proposals.

You can find the contact information for the

Senate Finance Committee members at
http://www.legis.state.wv.us/committees/senate/SenateCommittee.cfm?Chart=fin

and

House Finance Committee members at
http://www.legis.state.wv.us/committees/house/HouseCommittee.cfm?Chart=fin

When you contact committee members, you can ask them to fully fund the Division of Culture & History.

Offer specific information about what will be lost without this funding.

Historic Preservation Grants keep roofs on historic buildings.  Private, government, and nonprofit historic building owners can apply for these grants.  All properties listed individually on the National Register of Historic Places and listed as a contributing building in a National Register Historic District are eligible.  Every dollar in grants leverages an equivalent dollar amount in private and personal funds.  These grants can be combined with tax credit incentives, as well.

Arts Programming supports activities around the state like the Huntington Symphony, WV Public Theater, and local community arts activities, as well as Festivals from Vandalia Gathering and Appalachian String Band Festival at Clifftop, to Mountain State Forest

Festival and fairs in small communities, would all lose funding through the Governor’s recommended budget.  These programs utilize state funds to leverage federal, community and private dollars for programs that support jobs, bring visitors to WV tourism destinations, and enhance quality of life that attracts new business.

If you want to protect arts and historic preservation funding, please contact Finance Committee members today and ask them to fully fund the Division of Culture & History.

​Good news! On Thursday, February 16th, legislation was introduced in Congress that would make important changes to the historic tax credit.  The bipartisan Historic Tax Credit Improvement Act (HTCIA)(H.R. 1158 / S.425) closely resembles legislation introduced in the last Congress that would improve access to the credit for smaller rehabilitation projects that will help revitalize our small towns and our inner cities.

The legislation was introduced in the House of Representatives by Congressmen Mike Kelly (R-PA) and Earl Blumenauer (D-OR) and is supported by 18 cosponsors, including nine Republicans and nine Democrats and eight members of the Ways and Means Committee.  Senators Susan Collins (R-ME) and Ben Cardin (D-MD) introduced companion legislation in the Senate and were joined by Senators Cochran (R-MS), Gillibrand (D-NY), Leahy (D-VT), and Wicker (R-MS).

The Historic Tax Credit Improvement Act encourages redevelopment of smaller, income-producing properties by:

• Increasing the credit from 20 to 30 percent for projects with rehabilitation expenses of less than $2.5 million;

• Simplifying the application process for small developers by allowing a onetime transfer of the credits as a tax certificate;

• Making it easier to meet the substantial rehabilitation test; and

• Creating greater flexibility for nonprofit organizations to partner with developers in redevelopment projects.

Please contact your members of Congress and urge them to support the Historic Tax Credit Improvement Act,H.R. 1158 / S.425.

Take Action

The HTCIA provides Members of Congress with a way to indicate their support for the credit and offers several reform ideas that could be incorporated into a larger tax reform bill.  Adding cosponsors to the legislation is a critical step to protecting the historic tax credit during the tax reform process.
 
Urge Members of Congress to co-sponsor the Historic Tax Credit Improvement Act H.R. 1158 / S.425: 

1. Send your delegation an email encouraging cosponsorship of the HTCIA;
2. If you are an organization, request that your members reach out to your state’s Congressional delegation to urge cosponsorship.
3. Ask Senate and House Members to Meet “In-district” During the Congressional Recess April 10th-21st:

Contact district offices of both House and Senate Members and ask to schedule a meeting:

To locate the name and phone number of your House Representative go to:
http://www.house.gov/representatives/find/

To locate the names and phone number of your Senators go to:
http://www.senate.gov/general/contact_information/senators_cfm.cfm?OrderBy=state&Sort=ASC

Helpful Tips:

• Combine your meeting with a tour of a completed or potential HTC project;

• If a meeting with the Member is not possible, request a meeting with staff;

• Coordinate meetings with local preservationists, developers, architects, mayors, Main Street organizations and others in order to convey the broad impact of the Historic Tax Credit program.

• Please share the outcomes of your advocacy with HTC Campaign Staff Members (see below).

1. Join the Federal Policy Webinar on March 9 at 2:00 p.m. ET

Resources:

• Talking Points

• Bill Summary

• HTC Maps
  • State and Congressional District Maps with Economic Impact Data
  • Interactive Mapping Tool developed by Novogradac and Company

• HTC Staff Contacts:

o   Mike Phillips ([email protected])
o   Shaw Sprague ([email protected])
o   Renee Kuhlman ([email protected])

Thank you for speaking up in support of the federal historic tax credit! With your ongoing engagement, the historic tax credit will continue to revitalize our communities, stimulate the economy, and preserve our irreplaceable historic buildings.

Appalachian Forest Heritage Area is one step closer to national recognition, thanks to the introduction in the Senate of the S. 401 Appalachian Forest National Heritage Area Act of 2017. Introduced by U.S Senators  Joe Manchin (D-W.Va.), Shelley Moore Capito (R-W.Va.), Ben Cardin (D-Md.) and Chris Van Hollen (D-Md.), the bill would designate the 18 county region in the highlands of West Virginia and western Maryland as a National Heritage Area.

“We are incredibly excited to have our designation bill introduced in the Senate this early in the Congressional session,” said Phyllis Baxter, Executive Director of Appalachian Forest Heritage Area. “We thank all four of our Senators for their support and look forward to movement on our bill as the session progresses.”

Appalachian Forest Heritage Area (AFHA) has been seeking National Heritage Area designation since approval of their Feasibility Study by the National Park Service in 2006. Designation as a National Heritage Area will bring national recognition of the importance of the Appalachian Forest Heritage story, as well as technical assistance through the National Park Service and funding for local projects. AFHA works only with willing partners, and designation as a National Heritage Area does not change any land management and does not add any new regulations.

Appalachian Forest Heritage Area (AFHA) has been working for over 15 years to promote rural community development through heritage tourism and forest conservation. As a heritage area, AFHA works across county and state lines with communities, agencies and non-profit groups. AFHA builds partnerships with a wide variety of interest groups, including forest industry, public lands agencies, and environmental groups, historic and cultural sites, and tourism and community development efforts.  Recent accomplishments include the Appalachian Forest Discovery Center in downtown Elkins, new on-line thematic story map tours, and conservation awareness outreach. AFHA sponsors a 38 member AmeriCorps program which provides assistance to local site partners on conservation, community development, heritage tourism, and historic preservation projects. For more information about Appalachian Forest Heritage Area, see www.appalachianforest.us , call 304-636-6182 or email afha@appalachianforest.us.

For the Senate press release, see https://www.capito.senate.gov/news/press-releases/capito-manchin-cardin-van-hollen-introduction-legislation-to-designate-appalachian-forest-heritage-area