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LEVERAGING FUNDS TO
STIMULATE DEVELOPMENT
AND ECONOMY
Massachusetts State Historic Rehabilitation Tax Credit Program
Chapter 141, Section 22 of MGL
Introduction
Since April, 2004, the Massachusetts Historic Rehabilitation Tax Credit program
has been catalyzing the rehabilitation, reuse and revitalization of historic properties
across the Commonwealth. These historic structures have been rehabilitated to
create quality affordable and market rate housing, community centers, commercial
and office space, performing arts venues and restaurants and more, benefiting our
communities in numerous ways.
The program has grown steadily in popularity over five years, from 14 first round
As the lead organization in the conception, lobbying and expansion of the credit,
Preservation Massachusetts felt it imperative to quantify the direct benefits of the
historic tax credit back to the Commonwealth. It is not hard to see the impact of
the credit by viewing construction sites and seeing the before and after pictures of
historic structures restored. Yet it is the dollars spent as a result of redevelopment,
tax revenues, and jobs created and sustained, that paint the true picture of the
credit’s success and illuminate its potential for the future.
11 M - 20 M
21 M - 50 M
51 M - 100 M
* 101 M - 150 M
BARNSTABLE COUNTY n
CURRENT DEMAND
$ 83.8 M POTENTIAL INVESTMENT
$ 16.3 M TAX CREDIT DEMAND $ 10.2 M TAX CREDIT DEMAND
5 CREDIT IMPACT
BY COUNTY
LEVERAGING FEDERAL $$$
The Massachusetts State Historic Tax Credit has widely revived the use of the Federal
Historic Tax Credit across the Commonwealth. The combination of both state and federal tax
credits has proved enticing to developers and allowed many challenging programs to become a
CREDIT IMPACT
reality.
In FY 2008, the National Park Service reports that Massachusetts ranks number 2 in the
country with a total of $324,940,381 in certified expenses from 58 projects trailing just
slightly behind Missouri’s $376,705,762 in certified expenses from 134 projects.
(Source: Federal Tax Incentives for Rehabilitation Historic Buildings: Statistical Report and Analysis for Fiscal Year 2008,
The National Park Service, February 2009.)
*In 2003 Preservation Massachusetts created a model for calculating financial impact of the Massachusetts Historic Rehabilitation Tax
Credit. The multipliers were calculated using a customized input-output model, the Preservation Economic Impact Model. Source:
Lahr, Mike L. & Listokin, David; Economic Impact of Historic Preservation in Massachusetts; Center for Urban Policy Research, Rutgers
University.
CREDIT IMPACT 3
4 MASSACHUSETTS HISTORIC REHABILITATION TAX CREDIT
CREATING JOBS
• Massachusetts closed 2008 with an unemployment rate of 6.9%
• Over the past five years, tax credit investment has created
851 new housing units with 422 of those units being
affordable housing units
LOOKING FORWARD
CREDIT IMPACT 10
8 MASSACHUSETTS HISTORIC REHABILITATION TAX CREDIT
REVITALIZING COMMUNITIES
In downtown Lawrence, mills stood vacant L
O
for many years after textile companies O
closed their operations. With the loss of K
the industry, former factories no longer I
stimulated the economy and instead N
G
drained Lawrence.
F
O
Washington Mills’ rehabilitation into
R
155 housing units which would not have W
been possible without State Tax Credits, A
brought $ 40 million worth of investment R
D
to downtown Lawrence. Now the home of
over 200 new residents, Washington Mills is
Built in 1929, Greenfield’s First National Bank’s Art
acting as a catalyst for future development Deco features stand out against the predominantly
Greek and Federal revival style of downtown. The
in Lawrence. strong forms of the building, reinforced concrete
and steel beams used in construction were meant to
inspire confidence in local banking. Years of neglect
Throughout Massachusetts, the State may have deteriorated some elements, but not plans
for creating retail and restaurant space in this local
Rehabilitation Tax Credit is filling the landmark. This project needs $.7 M in tax
funding gap to help revitalize communities credit allocation to strengthen their own
investment of $ 4.1 M.
and draw investment to cities like
Lawrence.
CREDIT IMPACT 12
Union Crossing is a major
redevelopment located
between downtown
Lawrence and a new
intermodal transportation
center. The project will
include 125 housing units
of mixed income housing,
including affordable housing
for working families,
approximately 125,000 sf of
commercial space, a 12,000
square foot daycare center,
and two acres of public
Promenade open space including a
streamlined pedestrian
thoroughfare, new park
Raised
space, and playground. This
Lawn Panel
project embodies so much
more than just preservation;
Shade
Trellis it answers a critical
and
Entry
Pavilion
need for housing, helps
bring new jobs to Lawrence,
promotes transit oriented
development and puts life
back into a complex that was
Playground in danger of becoming vacant
and blighted.
South
10 MASSACHUSETTS HISTORIC REHABILITATION TAX CREDIT
North Canal
OTHER BENEFITS OF PRESERVATION
Urban Revitalization
Downtown cores become re-populated thus
improving the market for retail services, bringing
eyes on the streets and turning on lights in the
windows. Local economies are stimulated from
the increased demand resulting from infusion of
new building users.
Conservation
Building preservation preserves open space and
reduces waste. There is less new construction in
greenfields and less waste in our landfills.
Sense of Place
Preserving places with deep historical and
LOOKING FORWARD cultural significance improves our quality of
life.
CREDIT IMPACT 14
WHAT IS THE MA REHABILITATION TAX CREDIT DOING IN YOUR COMMUNITY?
BERKSHIRE COUNTY
RED LION INN, STOCKBRIDGE
THE COLONIAL THEATRE, PITTSFIELD
BRISTOL COUNTY
UNION STREET LOFTS, NEW BEDFORD
ESSEX COUNTY SUFFOLK COUNTY
BROWN SCHOOL, PEABODY 311 SUMMER STREET, BOSTON
CORDOVAN, HAVERHILL BAKER SQUARE II, DORCHESTER
WASHINGTON MILLS, LAWRENCE
WORCESTER COUNTY
FRANKLIN COUNTY HANOVER THEATRE, WORCESTER
RISTORANTE DIPAOLO, TURNERS FALLS PARKHILL MILL, FITCHBURG
HAMPDEN COUNTY
WORTHINGTON COMMONS, SPRINGFIELD
ORIGINAL USE: HOTEL
RED LION INN, STOCKBRIDGE
DEVELOPER: THE FITZGERALD FAMILY REUSE: HOTEL
Since the Colonial Theatre opened its doors in 2006, values of a typical home within
the city of Pittsfield have risen an average of 20%. More and more people are coming
downtown to the 40 plus new condo units, dozen-or-so restaurants, half dozen shops,
and a handful of small businesses that have been established since the reopening.
Mayor James M. Ruberto
TOTAL PROJECT
COST:
$17 M TOTAL TAX
CREDIT:
$1 M
TAX CREDIT PROJECTS 20
UNION STREET LOFTS, NEW BEDFORD
DEVELOPER: HALLKEEN AND THE WATERFRONT
AREA HISTORIC LEAGUE (WHALE)
21
35 HOUSING
UNITS
WITH 9
AFFORDABLE
UNITS
CONVERTED TO MIXED
INCOME HOUSING/
COMMERCIAL SPACE
41 NEW HOUSING
UNITS; 20 ELDERLY
AFFORDABLE UNITS
REUSE: HOUSING
TOTAL PROJECT
COST:
$42.1 M
TOTAL TAX
CREDITS:
$5.40 M
In a region dotted with historic mills, Washington Mills stands out—not only for
the quality of its recent renovation but also for the impact of its rebirth on the town
of Lawrence. This project has demonstrated in remarkable fashion how historic
preservation can be a real catalyst for downtown revitalization.
Richard Moe, President, National Trust for Historic Preservation
10% OF
UNITS ARE
AFFORDABLE
HOUSING
ORIGINAL USE:
DOWNTOWN
COMMERCIAL SPACE
REUSE: RESTAURANT
TOTAL
PROJECT
COST:
$19 M
TOTAL TAX
CREDIT:
$2 M
REUSE:
HOUSING
100%
AFFORDABLE
HOUSING UNITS
B
E
F
O
R
E
80 NEW HOUSING
UNITS CREATED WITH 8
AFFORDABLE HOUSING
UNITS
Preservation Massachusetts
45 School Street
Boston, MA 02108
617.723.3383
www.preservationmass.org
This project has been funded in part by a grant from the National
Trust for Historic Preservation’s Eastern Massachusetts Preservation
Fund