Project managers have sought the use of New York’s rehabilitation commercial tax credit in 150 projects in four upstate New York regions since 2011. That includes 43 projects that cost more than $401 million in Central New York, 21 projects costing nearly $49 million in the Mohawk Valley, 38 projects costing more than $121 million in the […]
Project managers have sought the use of New York’s rehabilitation commercial tax credit in 150 projects in four upstate New York regions since 2011.
That includes 43 projects that cost more than $401 million in Central New York, 21 projects costing nearly $49 million in the Mohawk Valley, 38 projects costing more than $121 million in the North Country, and 48 projects with investment of more than $251 million in the Southern Tier, per a Feb. 12 news release from the office of Gov. Andrew Cuomo.
The regional details were part of Cuomo’s broader announcement that New York has approved use of the rehabilitation commercial tax credit for more than 1,000 historic properties, “catalyzing” more than $12 billion in private investment since 2011.
In addition to the completed projects, 403 additional commercial projects remain in active development, with a projected investment of $4.4 billion in private funding.
That includes 26 in Central New York with a projected investment of more than $169 million, 10 in the Mohawk Valley with projected costs totaling more than $58 million, three projects in the North Country with a projected investment of more than $36 million, and 26 in the Southern Tier with costs totaling more than $46 million, per Cuomo’s office.
A study by the National Park Service details the impact of the tax credit on jobs and tax revenue in New York state. For the five-year period covering the years from 2015 through 2019, historic tax-credit program activity in New York generated 67,578 jobs nationally and more than $195 million in local, state and federal taxes.
Qualifying investments in commercial properties have been approved in 60 counties across New York since Gov. Andrew Cuomo signed legislation to “bolster” the state’s rehabilitation tax credits. Federal and state tax credits each offer a 20 percent tax credit for qualified rehabilitation expenditures for the owners of income-producing properties listed — or in the process of listing — on the National Register of Historic Places.
Cuomo signed legislation in 2013 to improve the commercial credit by enabling property owners to partner with investors who do not have New York State tax liability and take the credit as a refund. The ability to take a refund helped expand the pool of investors willing to participate in New York State projects.
In 2019, the governor signed legislation to extend the state credit through 2024 and protect the value of the state credit from changes made in federal tax code. Since then, investors have completed 678 projects, totaling $7.7 billion in historic-resource investment, Cuomo’s office said.