Looking Good and Working Good

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by Scott Whipple

At Wednesday’s Historic Preservation Commission meeting, the HPC completed their review of the calendar year 2010 historic preservation tax credit applications, recommending approval of a total of 59 applications.  The projects represent nearly $1 million invested, much of which went directly into Montgomery County’s economy in the form of maintenance to and rehabilitation of historic properties designated in the County’s Master Plan for Historic Preservation.  And the credits put $98,344 back in the pockets of county property owners.

A study of the Maryland rehab tax credit program, prepared by the Abell Foundation in 2009, called historic preservation tax credits a “community revitalization engine.”  The Abell report found that the state program stimulated investment, created jobs, and improved economies.  In looking at residential projects (most Montgomery County rehab tax credits are for residential projects), the Abell report found that over the (then) 12 years of the program, the projects generated more than $354 million in economic activity, created jobs for nearly 3500 people, and generated (during construction alone) more than $23.5 million in state and local taxes.  Moreover, a recently completed study of Connecticut’s tax credit program found that historic preservation projects created, on a per-dollar-invented basis, more jobs than new construction.

Many Montgomery County property owners benefit from both the county’s and the state’s tax credits.  Montgomery County is second behind only Baltimore City in the number of state rehab tax credits for residential properties.  Between 1996 and 2009, Montgomery County property owners received $6.3 million in Maryland rehab tax credits and invested more than $30 million in the rehabilitation of historic properties across the county.

A snow-covered scene with a small white house, a pagoda-style building on the left, and a large building on the right. Bare trees and a clear blue sky complete the winter setting.

And who doesn’t love a before and after? This is the Pagoda, Sorority House and Amend Hall at the National Seminary–before tax credit rehab

An old wooden house with a deteriorating roof and peeling paint on the walls stands surrounded by lush green trees. The front has a covered porch with a slanted roof and weathered picket fence. The overall appearance is worn and rustic.

Looking a bit scruffy

As we wrap up another year of tax credit applications and celebrate the preservation benefit realized through these projects (thank you, historic property-owners!), let’s not overlook the important positive economic impact these historic rehab projects have on the county through the jobs they created and the increased employment, sales, and real estate taxes generated for the county.

A sloped walkway leads to a two-story house with green siding, white trim, and a covered porch. The front features decorative windows and an overhanging roof. A tree provides partial shade. A stone foundation is visible below.

After rehab–neat, trim, and structurally sound

A two-story house with a unique design, featuring a mix of green wood siding and stone base. It has multiple diamond-patterned windows, a sloping roof, and a side staircase entrance. A large tree and a streetlamp are on the left.

restored to former glory

A green and white Craftsman-style house with a sloping roof and diamond-patterned windows. The front door is white with steps leading up to it. The house is surrounded by grass and a few small bushes. Nearby, there are cars and additional buildings.

thank you tax credits