Iowa’s Historic Preservation Tax Credit Program: Revitalizing Communities

The Iowa Economic Development Authority (IEDA) is investing over $23 million in the revitalization of 11 historic properties across the state through its Historic Preservation Tax Credit program. This initiative aims to breathe new life into significant buildings, fostering economic growth and preserving Iowa’s heritage.

Understanding the Historic preservation tax Credit Program

The Historic Preservation Tax Credit program is a state-level incentive designed to encourage the rehabilitation and restoration of historic buildings.These credits help offset the costs associated with these projects, making them financially viable for developers and property owners. The program recognizes that historic buildings are valuable community assets and contribute to a sense of place.

How the Program Works

The program operates through a competitive submission process.Property owners submit proposals detailing thier rehabilitation plans.IEDA evaluates these projects based on several key criteria:

• Readiness: How prepared is the project to begin construction?
• Financing: Is the project financially sound and sustainable?
• Local Support: does the project have backing from the local community?

Prosperous applicants receive a tax credit, which can be used to reduce their state tax liability. The amount of the credit is typically a percentage of the qualified rehabilitation expenses.

Recent Award Recipients (2023 Application Round)

The most recent application round,which opened in July,had $42.75 million available. IEDA received 23 applications requesting over $49 million in tax credits, demonstrating strong interest in the program. The following projects were awarded funding:

• Des Moines: Two projects were awarded in Des Moines. the rehabilitation of the historic Coffin House, a single-family home, received a $318,290 tax credit. The second project, the renovation of the historic Franklin Apartments, received a significant award.
• Cedar Rapids: The historic mayflower Apartments is undergoing a substantial renovation, receiving a tax credit award.
• Davenport: Several projects in Davenport are benefiting from the program, focusing on revitalizing buildings in the city’s historic downtown.
• Dubuque: Investments are being made in Dubuque’s historic Millwork District, with tax credits supporting the restoration of industrial buildings.
• Other Locations: Projects were also awarded in several other Iowa communities, including Council Bluffs, Iowa City, and Ottumwa.

Specific Project Examples (as of November 20, 2023)

• Coffin House (Des Moines): $318,290 awarded for repairs to this significant single-family home.
• Franklin Apartments (Des Moines): Awarded a substantial tax credit for comprehensive renovations.

The Impact of Historic Preservation

The Historic Preservation Tax Credit program delivers multiple benefits to Iowa communities:

• Economic Development: Rehabilitation projects create jobs in construction and related industries.
• Community Revitalization: Restored buildings attract businesses and residents, boosting local economies.
• Preservation of Heritage: the program safeguards Iowa’s architectural and cultural legacy.
• Increased Property Values: Rehabilitated historic properties often experience increased property values.

Looking Ahead

The Iowa Economic Development Authority continues to prioritize historic preservation as a key component of its economic development strategy. Future application rounds will provide further opportunities for property owners to access these valuable tax credits. The program’s success demonstrates the power of public-private partnerships in preserving Iowa’s unique character and fostering vibrant communities.

Key takeaways

• Iowa’s Historic Preservation Tax Credit program provides financial incentives for rehabilitating historic buildings.
• Projects are evaluated based on readiness, financing, and local support.
• The program stimulates economic development, revitalizes communities, and preserves Iowa’s heritage.
• recent awards total over $23 million for 11 projects across the state.