Proposed Ohio Historic Tax Credit legislation was the subject of hearings yesterday before the Ohio General Assembly – with testimony taken on both versions of the proposal (House and Senate).

Like the Federal Rehabilitation Tax Credit, state historic tax credits are designed to stimulate economic development in areas with existing infrastructure and resources, to leverage private investment in older buildings, and also to create jobs. Now in place in at least 24 of the 50 states, these tax credits often represent a “make or break” consideration for investors considering projects in traditional downtowns and communities. In Missouri the credits have produced $1.50 in state tax revenue for every $1.00 of tax credit, as well as $2.00 in other benefits – meaning that the Missouri program not only pays for itself, but actually generates revenue for state government (according to Missouri Preservation).

According to a news release from the Ohio Chapter of the American Institute of Architects, testimony presented at the hearing came from an official with the Ohio Department of Development, a successful preservation architect from Cleveland, and information provided by a sponsoring legislator.

Last year, a version of the tax credit passed the Ohio House but never made it to a vote in the Ohio Senate. The House and Senate versions differ in key respects, however they both center on the provision of a credit for owners of income-producing properties (similar to their Federal counterpart).

To read a copy of the two currently proposed versions, click here and here.

Photo: Central Hotel, Galion, renovated with use of Federal Rehabilitation Tax Credit/Preservation Ohio File Photo