DES MOINES – Governor TerryBranstad on May 27 signed legislation that strengthens and brings more predictability to the State Historic Preservation and Cultural & Entertainment District Tax Credit Program overseen by the Department of Cultural Affairs (DCA).
“This program plays a major role in revitalizing Iowa’s communities, generating economic opportunities and creating jobs for Iowans,” said Branstad. “Future generations of Iowans will have historic buildings available to connect with earlier generations that made Iowa a great place to live. I thank the Iowa Legislature for passing this bill and it is my great pleasure to sign it. By signing this bill, I fully support the joint efforts of the Iowa Department of Cultural Affairs and the Iowa Legislature to improve the State Historic Preservation Tax Credit Program, which to date boasts more than one billion dollars of investments in Iowa’s communities.”
The Iowa Legislature originally enacted the program to provide a state income tax credit of 25 percent of qualified costs for the rehabilitation of historic buildings. The goal was to encourage the private sector to protect historic properties, preserve the cultural heritage of Iowa communities and increase investment in local communities.
Since 2001, the state has invested $177 million in historic preservation tax credits, which have been the catalyst behind the rehabilitation of 283 historic buildings and the revitalization of 64 communities across Iowa. That investment has leveraged and attracted $890 million in investments, including $800 million for rehabilitation activities and an additional $90 million in related new construction.
Additionally, owners of historic properties, developers and community stakeholders have leveraged the program to reinvigorate mixed-used neighborhoods that attract entrepreneurs, small businesses and creative workforce seeking authentic and unique places to live and work.
Under the legislation signed Tuesday, Iowans will see a number of changes in the program:
- Elimination of a lottery-based tax credit reservation system in favor of a more predictable readiness-application process.
- Elevated emphasis on project pre-planning, financing and timeline.
- A transition from a three-year tax credit reservation system to a “use-when-you’re-ready” system that offers more predictability for establishing project completion dates and submission of tax credit.
- Retools the review process to be more predictable for the applicant and the state.
- Uses an approach similar to other state tax incentive programs to promote consistency for tax preparers and for ease of administration.
The State Historic Preservation and Cultural & Entertainment District Tax Credit Program is overseen by the Department of Cultural Affairs State Historic Preservation Office (SHPO), a bureau of the State Historical Society of Iowa (SHSI).
