In a recent musical retrospective piece, Drake exclaims “[w]e started from the bottom, now we’re here!” He reminds us how important it is to stop and think about how far we have come. In a similar vein, the Alabama, Virginia and West Virginia state legislatures are reviewing their historic rehabilitation tax credits with an eye to the future. Like Drake looks over his life and accomplishments in his song, these states are reviewing the purposes, goals and results of these credit programs as a way to measure their effectiveness and how far they have come.
Generally, historic rehabilitation tax credits provide taxpayers an incentive to purchase, restore and put historic properties to use. The goal of historic rehabilitation credits is often twofold: preserving history and creating jobs. Although the focus of these credits is usually on commercial property, historic rehabilitation credits are often times also available to individuals for personal residences. The federal government and about two-thirds of states offer a historic rehabilitation tax credit.