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Join a network of more than 15,000 members and supporters who are invested in preserving California’s unique architectural and cultural heritage. Click here to learn more.
We did it!
On October 9th, Governor Gavin Newsom signed SB 451, the California Historic Rehabilitation Tax Credit, adding California to the list of more than 35 states that have passed such incentives. The bill, which passed both the Senate and the Assembly with unanimous approval, will enable the renewal of aging structures and communities throughout the state, and promote the development of affordable housing.
While SB 451 was introduced in February by Senate President pro Tempore Toni G. Atkins, it built on work we did in 2014, with the collaboration of the American Institute of Architects, California Council (AIACC). The California Preservation Foundation and the AIACC are co-sponsors of this crucial legislation. Passing the tax credit cost CPF more than $80,000 in direct and indirect costs to get through the legislature, and will require annual lobbying to ensure it continued allocation. Join us in this fight by making a donation to the Advocacy Fund today. Your donation will be matched dollar for dollar (up to $50,000) and will help us move this important bill forward.
Bill Summary and Highlights
Download a one page Case Statement here.
State historic rehabilitation tax credits allow a property owner to claim a percentage of their project expenses against state income taxes and are designed to complement the Federal Rehabilitation Tax Credit. These revenue-enhancing programs more than pay for the economic cost of the rehabilitation credit. SB 451 will:
- Create a state 20% tax credit for the rehabilitation of historic structures.
- Include a 5% bonus for certain projects, such as affordable housing.
- Create construction and building industry jobs.
- Enhance state tax revenues through increased economic activity, employment, and wages.
- Increase local revenues through increased property values, sales tax, and heritage tourism.
- Stimulate the economy and sustainable development.
- Combine these credits with other tax credits for greater leverage.
- Revitalize economically depressed areas and reduce blight.
- Preserve the rich legacies of California communities.
Learn more about the impact of Historic Tax Credits, including case examples of success, here.
Previous Updates
9/10/19 | SB451 is on the Governor’s Desk!
After nearly 8 months of continued advocacy, SB 451 has made it to the Governor Gavin Newsom’s desk, and we need your help to get it across the finish line! Please write a letter of support to the Governor so that we can join the 35 other states that have passed state tax credit bills to augment the Federal Tax Credit.
All letters should be cc’d to Senate President Pro Tem Toni Atkins and CPF. Letters need to be received by Monday, September 16th to have the biggest impact. A sample letter is available below or at the link here. You can send a printed letter to the addresses here.
Mailing Addresses
The Honorable Gavin Newsom
Governor of the State of California
Governor’s Office, State Capitol
Sacramento, CA 95814
The Honorable Toni Atkins
Senate Pro Tem
State Capitol, Room 205
Sacramento, CA 95814
California Preservation Foundation
101 The Embarcadero, Suite 120
San Francisco, CA 94105
Prefer Email?
Email Governor Newsom
Send a copy to Senate Pro Tem Atkins
Sent a copy to CPF
Letters need to be on the Governor’s desk by next Monday, September 16th.
8/30/19 | SB451 is moving into the full Assembly
The State Historic Tax Credit (SB 451) is currently moving into the full Assembly, and we need your support! While many Assembly Members are supportive, every Member needs to hear from their constituents about why they support historic preservation. Please write to your local Assembly Members in support of SB 451.
What can you do to help?
- Write a letter of support. A sample letter is available below.
- Send your letter to your local Assembly Member (click here to locate their information if you’re not sure).
- Ask your City Council or City Staff to state their support by writing a letter.
- If you work in a preservation related field, ask your firm to send a letter of support.
8/20/19 | SB451 is at the Assembly Appropriations Committee
The State Historic Tax Credit (SB 451) is currently being reviewed by the Assembly Appropriations Committee, and we need your help to get it through! Please write to the Assembly Appropriations Chair Lorena Gonzalez (San Diego) and the members of the Assembly Appropriation Committee to support SB 451.
What can you do to help?
- Write a letter of support. A sample letter is available below.
- Send your letter to Assembly Member Gonzalez if you are in her district.
- Send your letter to Assembly Speaker Anthony Rendon.
- Send your letter to your local Assembly Member if they are on the Appropriations Committee. Click here for a list of committee members and contact information.
- Ask your City Council or City Staff to state their support by writing a letter.
7/8/19 | SB451 Passes in the Assembly Committee Revenue and Taxation
SB451 has cleared another hurdle, as it has passed with unanimous support through its first committee hearing in the Assembly. Further updates will come shortly, but it is never too soon to contact your Assembly Member and let them know that you support the State Historic Tax Credit. Click here to find contact information for your local elected representatives.
6/28/19 | Why Tax Credits Matter
We shared tax credit success stories to show how this legislation will have a beneficial impact in communities across the state. Read more here: https://californiapreservation.org/why-tax-credits-matter/
5/28/19 | SB451 Moves to the Assembly
Following a unanimous vote in the Senate, the bill is now with the State Assembly, where it was read for the first time on May 28th.
5/21/19 | 6-0 Vote in the Senate Appropriates Committee
On May 20th, the bill, cleared yet another hurdle with unanimous support from the Appropriations Committee. From here, the bill will go up for a vote by the full Senate, then on to the State Assembly. We will continue to keep you informed about the progress of this crucial legislation, and how you can help us put it over the finish line.
4/3/19 | 5-0 Vote in the Senate Governance and Finance Committee
On Wednesday, April 3rd, the Senate Governance and Finance Committee voted 5 to 0 to move SB 451 forward! The next step on the path to the governor’s desk is the Appropriations committee, where we expect it to be heard shortly (the hearing date is still to be announced).
Cindy Heitzman along Senate President pro Tem Toni Atkins, State Treasurer Fiona Ma, and Mark Christian from AIA California.
Image Description: Cindy Heitzman with Senate President pro Tem Toni Atkins, State Treasurer Fiona Ma, and Mark Christian from AIA California at the Capitol in Sacramento, after a successful committee hearing.
4/1/19 | The State Historic Tax Credit bill is gaining momentum
On Wednesday, April 3rd, the Senate Governance and Finance Committee will hold a hearing on the bill. Speaking in support of the bill are Senate Pro Tem Toni Atkins, State Treasurer Fiona Ma, CPF Executive Director Cindy Heitzman, and Mark Christian, AIA CA.
If enacted, SB 451 will encourage economic development of properties on or eligible for the State or National Register of Historic Places through a 20% investment tax credit, placing California alongside 35 other states who have adopted a state historic tax credit program. Click here for more information about SB 451.
We encourage our members to send letters of support to your representatives.
- Send letters of support to the Senate Governance and Finance Committee through their web portal at: https://sgf.senate.ca.gov/
- Send a letter of support to your state representative at http://findyourrep.legislature.ca.gov/
- Please send copies of any letters to CPF at Advocacy@californiapreservation.org
Social Media Kit - Help Spread the Word!
Want to help spread us spread the word and show #WhyTaxCreditsMatter? Use the text and images below to share tax credit success stories, and statistics that highlight the impact of this crucial legislation. When posting, please tag us on Facebook, Twitter, and Instagram.
Tax Credit Statistics
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Since its inception, the Federal Historic Tax Credit has stimulated nearly $100 billion in rehabilitation investment. #WhyTaxCreditsMatter https://californiapreservation.org/why-tax-credits-matter/
The Federal Historic Tax Credit has spurred the creation of more than 300,000 new housing units, and the rehabilitation of more than 285,000 units. #WhyTaxCreditsMatter https://californiapreservation.org/why-tax-credits-matter/
The Federal Historic Tax credit has enabled the creation or rehabilitation of more than 166,000 low- and moderate-income housing units. #WhyTaxCreditsMatter https://californiapreservation.org/why-tax-credits-matter/
In California, between 2002-2016, 169 Federal Historic Tax Credit projects have resulted in nearly 40,000 jobs, and $2.8 billion in rehabilitation expenditures. #SB451 will make even more projects possible. https://californiapreservation.org/why-tax-credits-matter/
California is one of only 15 states without a State Historic Tax Credit in addition to the Federal. @CPF_SF is working with @AIACALIF and @SenToniAtkins on #SB451 which will help leverage private investment to reuse and preserve historic buildings. https://californiapreservation.org/why-tax-credits-matter/
Read about three projects that highlight important work that tax credits make possible at https://californiapreservation.org/why-tax-credits-matter/.
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Since its inception, the Federal Historic Tax Credit has stimulated nearly $100 billion in rehabilitation investment. It has spurred the creation of more than 300,000 new housing units, and the rehabilitation of more than 285,000 units, including more than 166,000 low- and moderate-income housing units.
In California, between 2002-2016, 169 Federal Historic Tax Credit projects have resulted in nearly 40,000 jobs, and $2.8 billion in rehabilitation expenditures. California is one of only 15 states that do not have a State Historic Tax Credit in addition to the Federal. The California Preservation Foundation is working with AIA California and Toni G. Atkins on #SB451 which will help leverage private investment to reuse and preserve historic buildings.
Read about three projects that highlight important work that tax credits make possible at https://californiapreservation.org/why-tax-credits-matter/.
Tax Credit Success Stories
Click on each image below to download a higher resolution version to share on social media.
The California Hotel
#HistoricPreservation and Low-Income Tax Credits enabled rehabilitation of the 1930 California Hotel into apartments for low-income Oakland residents. This project is one of hundreds of recent projects that would have benefited from #SB451, the State Historic Tax Credit bill that will increase the supply of affordable housing, support growth through infill development, and encourage property rehabilitation and maintenance in economically depressed areas. Read more at https://californiapreservation.org/why-tax-credits-matter.
Photo © Mark Luthringer
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Renovation of the California Hotel turned a historic hotel into apartments for low income #Oakland residents, one of hundreds of recent projects that would have benefited from #SB451. Read more at https://californiapreservation.org/why-tax-credits-matter.
Hollenbeck Terrace
Federal incentives enabled the adaptive reuse of the Santa Fe Coast Lines Hospital and Nurses’ Dormitory into low income housing for senior citizens. This project is one of hundreds of recent projects that would have benefited from #SB451, the State Historic Tax Credit bill that will increase the supply of affordable housing, support growth through infill development, and encourage property rehabilitation and maintenance in economically depressed areas. Read more at https://californiapreservation.org/why-tax-credits-matter.
Photo © AMCAL Multi-Housing, Inc.
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Adaptive Reuse at Hollenbeck Terrace turned a former hospital and dormitory into low income housing for seniors in #LosAngeles, one of hundreds of recent projects that would have benefited from #SB451. Read more at https://californiapreservation.org/why-tax-credits-matter.
San Francisco YMCA
The adaptive reuse of San Francisco’s Central YMCA restored the dignity of a beloved landmark and created an innovative integration of homes for the homeless, health and supportive services, a community gym, and an auditorium. This project is one of hundreds of recent projects that would have benefited from #SB451, the State Historic Tax Credit bill that will increase the supply of affordable housing, support growth through infill development, and encourage property rehabilitation and maintenance in economically depressed areas. Read more at https://californiapreservation.org/why-tax-credits-matter.
Photo © Mark Luthringer
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Adaptive reuse of the Central YMCA in #SanFrancisco integrated new homes for the homeless with health and supportive services, a community gym, and more. This is one of hundreds of recent projects that would have benefited from #SB451. Read more at https://californiapreservation.org/why-tax-credits-matter/
Federal stats via https://www.nps.gov/tps/tax-incentives/taxdocs/tax-incentives-2018annual.pdf
Sample Letter
We need to show Governor Newsom that historic tax credits have broad support. Click here to download a sample support letter, or copy the text below.
Re: SB 451 (Atkins), Historic Buildings Rehabilitation Tax Credit – SUPPORT
Dear Governor Newsom,
[Name of Your Organization is/I am] writing to request that you sign SB 451 (Atkins), a bill that will authorize a 20 percent state income tax credit for the rehabilitation of certified historic structures. This bill passed the Assembly and Senate with unanimous, bipartisan support.
Preserving the integrity of local historic structures serves not only as an important acknowledgement to our state’s rich past, but as a way for entire communities to benefit from the economic development of such properties. This bill is an investment in California’s communities and is worthy of your support.
The tax credits provided by SB 451 will incentivize the restoration of neglected and underused buildings in communities across California. From 2002 to 2016, $468.1 million in federal tax credits catalyzed 169 projects in California, totaling $2.8 billion in qualifying rehabilitation expenditures. This activity generated 39,279 jobs, $2.8 billion in Gross State Product, $160 million in state and local taxes, and $493.3 million in federal taxes.
The federal historic tax credit, coupled with the new California state historic preservation tax credit promises to stimulate millions of dollars in private investment, create new jobs, restore iconic landmarks and everyday neighborhoods throughout California.
Most importantly, this bill will help address the critical need for affordable housing in underutilized historic buildings by providing an important financial incentive. Between 2007 and 2017 over 38% of all federal historic tax credit projects in California created new housing units or improved existing units. Of that amount over half were affordable housing projects.
[If you have specific examples of the impact of this bill on your city/town, especially housing projects, please include here.]
State Historic Tax Credits make historic rehabilitation financially feasible, leverage significant private investment, and are a consistently strong return on state investment. We look forward to joining the 35 other states that have successful state historic tax credit programs and seek your support.
I strongly encourage you to sign SB 451 into law.
Sincerely,
Your Name and Title
CC: Senate President Pro Tem Toni Atkins
California Preservation Foundation
Click here to read more about CPF’s advocacy work.
Header Image © Tom Myers