Valesky Legislation Expanding Historic Rehabilitation Tax Credit Signed into Law

David J. Valesky

September 01, 2010

SYRACUSE, N.Y. – Legislation sponsored by State Senator David J. Valesky (D-Oneida) that expands the Historic Preservation Tax Credit (S.7556) was signed into law. The expansion allows banks and insurance companies to claim the tax credit, which will have a positive effect on commercial development efforts of historic structures across the state.

“Continued economic development is integral to the growth and expansion of our Upstate communities,” said Senator Valesky. “By allowing banks and insurance companies to utilize the HRTC, we are creating more incentive for companies to invest in larger projects in Upstate New York, which will spur economic growth and development.”

The new law opens the eligibility pool for the tax credit, providing more incentive to invest funds in rehabilitation projects across the state. The amendments allow banks and insurance companies to claim the tax credit, giving greater access to those wanting to restore and rehabilitate historic commercial structures.

Several projects in Central New York will receive a boost by allowing banks and insurance companies to apply for the tax credit, such as the Pike Block, Hurbson Office Building and Kirk Hotel projects in Syracuse.

Senator Valesky was the prime sponsor of the Historic Rehabilitation Tax Credit legislation signed into law in 2009 that provided tax incentives for investors of both commercial and residential development of historic structures across New York State. Since the law took effect on January 1, 2010, the residential component of the original bill – which covers owner-occupied structures listed on the State and National Registers of Historic Places – has already seen a rise in applications.

The commercial aspect will be strengthened by the passage of the new amendments.

“This is a major victory for economic development in Buffalo and Upstate New York,” said Assemblymember Sam Hoyt (D-Buffalo, Grand Island). “The amendments will create a ripple effect of private sector investment that includes the creation of hundreds of new jobs and historic structures in communities across upstate will be saved and restored.”

“This legislation is an important step forward in our efforts to fix this critical program and put New Yorkers back to work,” said Robert Simpson, president of CenterState CEO. “Thanks to Senator Valesky’s leadership on this issue, Syracuse and urban areas across upstate are poised to see hundreds of millions of dollars of re-investment from this program.” 

“Senator Valesky has always believed in the economic and community redevelopment potential of the New York State Rehabilitation Tax Credit program,” said Jay DiLorenzo, President of the Preservation League of New York State. “His leadership in the Senate has secured a significant improvement for this program, which will lead to construction starts, job growth, and increased tax revenues for local municipalities and New York State.”