The Pennsylvania House of Representatives recently passed House Bill 2358, which was sponsored by Rep. Jim Prokopiak, D-Bucks. The bill aims to create jobs and boost the state’s economy by increasing the Historic Preservation Tax Credit. If passed, the annual limit of the credit would be raised from $5 million to $20 million starting in 2025. Now, the bill will move to the state Senate for further consideration.
Prokopiak highlighted the significance of Pennsylvania’s Historic Preservation Tax Credit Program in preserving the state’s history. The program not only helps restore and maintain historical structures but also contributes to the economy by converting these structures into income-generating properties. Prokopiak emphasized the positive economic impact of the program, noting that every $1 million invested in historic rehabilitation projects creates 6.4 direct jobs and 5.6 indirect jobs in Pennsylvania, outperforming other industries.
The bill’s co-sponsorship memo highlighted that Pennsylvania has the fourth-lowest cap among the 37 states with a similar tax credit program. Prokopiak emphasized that the current $5 million cap is insufficient to meet the funding needs, as the demand for the tax credit exceeds the available funds. During the 2022-23 fiscal year, 31 projects requested $12.7 million in tax credits, but only 22 projects could be awarded credits due to the annual program cap.
Prokopiak expressed the need to increase the cap to allow more deserving projects to receive the tax credit. He believes that by preserving more of Pennsylvania’s architecture and history, the state can generate more jobs and attract greater economic investment. The passage of House Bill 2358 signals a step towards promoting economic development through historic preservation in Pennsylvania.