ProJo.com: Taking Credit - The renaissance is being financed with historic preservation tax credits
Huge front page article in today's Providence Sunday Journal about how new (2002) tax credits offered by the state have been more successful than anticipated, leading to maybe $50 million dollars in investment in RI brought in by the new credits.
There's a lot of praise for the state credits, which, when coupled with federal historic building credits make some normally unfinancable projects feasible. The best example of this is the Masonic Temple renovation (can it be a renovation if it was never finished in the first place?) which is finally, honest-to-god going forward. Providence gets a much needed hotel and a beautiful building that would never be built nowadays. Even if the state lost money on those credits it would be worth it. Here's a building, owned by the state, often perilously close to the wrecking ball, that was paying no taxes anyway. If the tax credits gave away any income the state would get from the hotel itself, the city would still win with increased tourism and investment momentum, not to mention the intangible benefits of FINALLY fixing up a landmark of futility.
Cost-benefit analyses are in the works to make sure that the state doesn't lose too much revenue, but I'd argue a program like this, especially now, would be a success as a money loser (though breaking even or better is obviously preferred). There's no push to dismantle the program, of course, just scale it back. We'll be watching, but for now, kudos to the RI Lege.
RELATED: The Providence City Council gets in on the tax break action - Foundry wins tax break from council.
