Governor Doyle Signs State Budget:
New Budget incorporates change in tax credit law for historic preservation
Oregon, July 2, 2009
Governor Jim Doyle signed into law Monday a budget that includes reforming the tax credit law for historic preservation. The new law allows separate investors to utilize either the state or federal tax credits and removes the previous mandate that one investor alone must use both credits.
“In many states, the investor who uses the federal credit is different from the investor who uses the state credit. This new law will give developers a chance to attract additional investors, thus maximizing use of the credit provision by achieving a larger pool of investors,” said Michael Stevens, State Historic Preservation Officer and Administrator of the Division of Historic Preservation and Public History at the Wisconsin Historical Society.
In Wisconsin each partner in a project gets a portion of the state tax credit based on that partner’s investment. Under the previous law, if the out-of-state investor did not have a Wisconsin tax liability, that credit would go unused. As a result, out-of-state investors had a disincentive to invest capital in the restoration of a historic Wisconsin property, and the state lost out on potential revenue opportunities that could contribute to Wisconsin’s economy.
Under the new law Wisconsin investors can utilize the Wisconsin historic credit even if the federal credit is utilized by an out-of-state investor. “This brings additional capital to historic projects so that more projects will be financially feasible,” said Gary Gorman, President of Gorman & Company, Inc. and long time advocate for the historic preservation tax credit legislation. Gorman & Company, Inc. has completed more historic preservation projects in Wisconsin than any other firm in the last fifteen years.
“In many cases, historic projects are located in downtown areas and are abandoned or underutilized prior to renovation. The investment made in these projects supports local leader’s efforts to revitalize their downtown or decaying neighborhoods. Local leaders support these projects because they create jobs for many local skilled and well paid construction trades, increase property taxes paid to the community and the school system, and draw people to live and work in otherwise stressed areas. Beyond the primary economic benefits, the renovation of historic buildings adds charm to the community, strengthens the appeal of the community to tourism, and honors the origins and founders of the community,” said Gorman.
Though Gorman has been a long time supporter of the legislation that was included in Governor Doyle’s budget bill and is now law, he recognizes the efforts of a coalition of local officials that brought this new law to fruition.
Partners who helped makes this possible were legislative leaders Senator Julie Lassa, Rep.Brett
Davis, Rep. Jennifer Shilling and Governor Jim Doyle. Other supporters were…
Rep. Al Ott
Rep. Kelda Roys
Rep. Pat Strachota
Rep. Lou Molepske
Rep. Joan Ballweg
Rep. Roger Roth
Rep. Peter Barca
Rep. Jerry Petrowksi
Senator John Lehman
Senator Randy Hopper
Senator Fred Risser
Senator Spencer Coggs
Senator Jon Erpenbach
Senator Dave Hanson
Senator Neil Kedzie
Senator Jeff Plale
Gorman & Company, Inc., headquartered in Oregon, Wisconsin, was created in 1984 with a mission to create high-quality housing opportunities. Through its use of public and private partnerships, Gorman & Company specializes in the renovation of historic buildings and renaissance of traditional urban neighborhoods. For more information or to view our portfolio, please visit www.GormanUSA.net