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See St. Louis Business Journal Article! The "Historic Tax Credit Program" is the most  effective economic development program in  the State of Missouri. It is nationally recognized as the most effective state program in the nation. Click here to learn more about Historic Tax Credits. Click here to read details about the benefits of the Historic Tax Credits in Missouri. This is a link to Lookup and Contact your State and Federal Legislators.

Missouri Historic Preservation Alliance, Missouri Downtoan  Association, Missouri Association of Realtors, Metropolitan  Congregations United, St. Louis RCGA, BOMA Missouri,  Missouri Growth Association, St. Louis AIA, Landmarks,  Mayors of the cities of St. Louis, Springfield, Kansas City,  and St. Louis County Executive.

    Why Capping the Historic Preservation Tax Credit 
    Would be Catastrophic for the State’s Economy

• The Historic Tax Credit provides a direct cash infusion into state and local budgets. 

Would you take $1.50 for a $1.00? That’s exactly what the Missouri Historic Tax Credit does.
The cost of credits in FY2000 was $20 million (according to Department of Economic 
Development figures). The direct increase in state and local taxes for that same year was 
$30 million (according to a Department of Economic Development-sponsored study).
The credits generated, in direct dollars, 1 ½ times their cost. Capping the credit would 
increase the deficit and create an even bigger budget crisis. DED says the state benefit is 
$1.78 per $1.00 of credit.

• The total benefits of the credit far exceed the direct infusion of dollars, boosting 

Missouri’s economy by over $1 billion each year (according to a 2001 study conducted 
by Rutgers University).

• In 2000, historic preservation projects created:

o   $249 million in income
o   $332 million in gross state product
o   $292 million in in-state wealth
o   $70 million in taxes, $30 million of that in state and local taxes, and
o   8,060 jobs.

• Historic preservation also generates $660 million annually in heritage 

tourism spending, creating:

o   $325 million in income
o   $574 million in gross state product
o   $506 million in in-state wealth
o   $147 million in taxes, $79 million of that in state and local taxes, and
o   20,077 jobs.

• A cap on Historic Preservation Tax Credits will bring a halt to redevelopment. 

Developers and homeowners will not buy a building, pay carrying costs, insurances, 
taxes and architect fees without knowing if a credit is available. 
The Federal government recognizes that its historic tax credit must be uncapped in 
order to work, and has thus remained so.

• This credit is the only widespread economic development tool working in Missouri

–and working for small towns as well as big cities.

• The Historic Preservation Tax Credits help revive economically unproductive 

downtowns in both rural and urban communities–thus increasing the state tax base. 
In fact, 85% of eligible buildings are located in depressed areas, both urban and rural.

• This tax credit aids development in older areas, saving state and municipal infrastructure costs 

for outlying development, such as highways.

• Missouri’s law has become a national model, and numerous states, such as Iowa, Tennessee, 

Wisconsin and Maryland, have tried to duplicate out success.

Click " here to view the above text - "Why Capping the Historic Preservation Tax Credit
would be catastrophic for the State Economy" in a printable format (Acrobat Reader required)  "

Click " here to read about "Why Removing Residential Projects from Historic Tax 
Credit Eligibility is Bad for Missouri" (Acrobat Reader required)  "

Click " here to read about "Historic Tax Credits Talking Points" (Acrobat Reader required)  "

Friedman Group, Ltd. & Friedman Development, Ltd. 245 Union Boulevard, St. Louis, MO 63108
Phone:  314.367.2800   Fax: 314.367.3671     Erics@FriedmanGroup.com
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