Since the opening date of the application period on December 1, 2014, I have received many calls and inquiries about the status of Year 2 of Pennsylvania’s Historic Preservation Tax Credit program. By the closure of the application period on February 1, 2015, the Department of Community and Economic Development (DCED) received 30 applications for the second round.
Over a long review period which lasted until mid-April, PHMC reviewed the applications to ensure applicants owned qualified historic buildings and that proposed rehabilitation plans met the Secretary of the Interior’s Standards for Rehabilitation. As the qualified applications far exceed the limited $3 million in available credits, DCED used a fair and balanced selection process based on a first -come, first serve basis with regional distribution to select the first round of projects.
To understand the potential economic impact of these 30 proposed projects, here is a general overview of the applicants:
- The applicants requested a total of $11,945,867 in tax credits for projects with the 30 projects representing an estimated $407,933,776 of construction expenditures, which will generate local and state taxes through payroll, material purchases, real estate taxes and other revenue streams that would offset the $3 million in state tax credits.
- There was broad regional distribution as all five regions submitted enough applications to utilize a full $500,000 allocation (12 in SE PA, 2 in NE PA, 5 in Central PA, 9 in SW PA and 1 in NW PA)
- Ultimately, 15 projects in 8 counties received tax credits with building types including an armory, schools, a Masonic hall, industrial buildings that manufactured US Navy ships and stoves, residential homes and large office buildings.
- The proposed uses for the buildings range from an artist studios and entertainment center (Stokes Millworks in Harrisburg), design studios for an international women’s retail store (Building 18, Philadelphia Naval Shipyard), an early learning center and student housing (James Madison School in Scranton) and a hotel (Oliver Building in Pittsburgh). A few projects such as the Briggs House in Harrisburg and 408 W. North Avenue in Pittsburgh focused on rehabbing historic houses for rental housing.
Here is a list of the historic buildings that received the Fiscal Year 2014-15 Historic Preservation Tax Credits allocation of $3 million by region:
| Southeast Region | |||
|---|---|---|---|
| Historic Building | Municipality | County | Tax Credit |
| Pennsylvania Building, 1501 Chestnut Street | Philadelphia | Philadelphia | $250,000 |
| A.F Bernot Brothers Building, 1642 Fairmount | Philadelphia | Philadelphia | $250,000 |
| Robert and Manders Stove Company | Hatboro | Montgomery | $150,000 |
| Building 18, Philadelphia Naval Shipyard | Philadelphia | Philadelphia | $100,000 |
| Northeast Region | |||
| Historic Building | Municipality | County | Tax Credit |
| James Madison School, 528 Quincy Avenue | Scranton | Lackawanna | $250,000 |
| Governor Wolf School, 45 N. 2nd Street | Easton | Northampton | $250,000 |
| Central Region | |||
| Historic Building | Municipality | County | Tax Credit |
| Bi-Comp Building, 210 York Street | York | York | $300,000 |
| Stokes Millworks, 340 Verbeke Street | Harrisburg | Dauphin | $117,250 |
| Briggs House, 17 N. Front Street | Harrisburg | Dauphin | $82,750 |
| Southwest Region | |||
| Historic Building | Municipality | County | Tax Credit |
| Heinz Service & Auditorium Building | Pittsburgh | Allegheny | $210,235 |
| Oliver Building, 535 Smithfield Street | Pittsburgh | Allegheny | $210,235 |
| Masonic Hall, 16-20 W. North Avenue | Pittsburgh | Allegheny | $150,000 |
| 5800 Bryant Street | Pittsburgh | Allegheny | $100,00 |
| 408 W. North Avenue | Pittsburgh | Allegheny | $79,350 |
| Northwest Region | |||
| Historic Building | Municipality | County | Tax Credit |
| Erie Armory, 350 E. 6th Street | Erie | Erie | $369,015 |
