History at work: Illinois leads nation again
Study ranks Illinois first in encouraging job creation, private investment through historic renovation
 

[October 05, 2015]  SPRINGFIELD – Illinois easily led the nation last year in creating jobs and encouraging private investment through historic preservation efforts, according to a new report by the National Park Service and Rutgers University.

A tax credit program administered by the Illinois Historic Preservation Agency yielded $807.4 million in private spending on historic rehabilitation projects and created 11,903 jobs, the study found.

Pennsylvania was a distant No. 2 at $478.5 million in spending and 7,777 jobs.

Illinois also saw $190 million in state, local and federal tax receipts from the rehab projects. New York was No. 2 at $124 million.

The report is available at: http://www.nps.gov/ tps/tax-incentives/taxdocs/economic-impact-2014.pdf

Illinois projects that went forward last year with help from the agency’s Preservation Services Division included overhauling Chicago’s Wrigley Building, renovating Peoria’s Hotel Pere Marquette, revitalizing Rockford’s Peacock Brewery and opening the new Virgin Hotel Chicago.

“Illinois has an amazing history that should be celebrated and used to help people. One way to do that is by encouraging the private sector to inject new life into historic buildings,” said Amy Martin, executive director of the Illinois Historic Preservation Agency. “We’re thrilled that Illinois leads the nation in this important category.”

The investment and job creation is made possible by a 20 percent federal income tax credit on certain expenditures for rehabilitation of historic properties. Expenses that qualify for tax credits include architectural and structural renovation, life-safety improvements and energy-saving upgrades such as window repairs.

The Illinois Historic Preservation Agency reviews projects and advises developers on how to qualify for the federal tax credits.

The federal tax credit does not cost the state of Illinois anything, but it produces significant state and local benefits. Developers generally buy materials close to the project site and hire local workers, according to the National Trust, and rehabilitation of historic buildings often requires more workers at higher wages than new construction does.

Staff from the IHPA’s Preservation Services Division made 233 visits to project sites in 2014 to review rehabilitation proposals and offer guidance to developers.

“This tax-credit program simultaneously creates jobs and preserves historic buildings. It’s great for the state of Illinois, and we’re proud to be part of its success,” said Rachel Leibowitz, manager of the Preservation Services Division.

Historic renovation projects are a growing part of the Illinois economy. Projects completed over the past 10 years had more than $2.1 billion in expenditures qualify for federal tax credits. This year’s mark was more than five times higher than a decade ago.

The Illinois Historic Preservation Agency also administers a small pilot state tax credit program and a homeowners’ property tax assessment freeze program, which generated $59 million and $15 million in investment last year, respectively.

[Shanta Thoele, Illinois Historic Preservation Agency]