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You did it! California Historic Rehabilitation Tax Credit!
November/December 2019
 The San Diego Police Headquarters. Courtesy San Diego Police Historical Association |
Governor Gavin Newsom recently signed into law the California Historic Rehabilitation Tax Credit!
These credits will attract private investment to restore historic properties rather than demolish them. California finally joins the list of more than 35 states that have passed such incentives.
SOHO thanks the California Preservation Foundation (CPF) and the American Institute of Architects (AIA) California Council for co-sponsoring this crucial legislation, while we worked closely with Senator Toni Atkins, who introduced and brought the bill to the governor's desk with unanimous bipartisan support.
From January 1, 2021 to January 1, 2026, the state will allocate $50 million annually for these tax credits.
"We could not be more pleased with this outcome and thank all who worked so hard to make this happen. We especially thank Senator Toni Atkins; Deanna Spehn, Senator Atkins' Policy Director; the leadership of CPF and the AIACC; and to each of you who wrote letters, emailed, and called throughout this multi-year effort. We appreciate that you kept up the effort, and let Governor Newsom know how important San Diego's historic resources are to you," stated Bruce Coons, SOHO's executive director.
"The California State Historic Tax Credit is an important tool that we can use to revitalize communities throughout California. This is a major victory for every Californian who believes that our architectural and cultural heritage is worth protecting," said Cindy Heitzman, CPF's executive director.
The new 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. The law will:
- Create a 20% state 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
This important legislation took years of advocacy efforts and coalition building. Thank you again for your commitment to preservation and for your continued support of SOHO.
If you would like to write Senator Atkins and thank her personally please do so HERE.
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