By Anna Huntsman/Broadcast version by Mary Kuhlman
Reporting for the Kent State-Ohio News Connection Collaboration.

Over the loud protests of preservation groups, Congress has repealed one tax credit for historic building restoration and changed the terms of another, sparking uncertainty about the future of historic rehabilitation projects in Ohio and across the nation.

Ohio ranked first in the nation for completed federal historic tax credit projects in 2016, with 103 approved across the state. In the GOP effort to simplify the tax code, the first draft of the Tax Cuts and Job Act eliminated federal historic tax credits entirely, despite the significant economic development they encouraged each year.

“We were living kind of a waking nightmare,” said Mariangela Pfister, the deputy state historic preservation officer for Ohio. “As Ohioans, I think we really see the benefit of the historic tax credit.”

Since 1976, individuals could receive 20 percent federal tax credit for restoring buildings listed on the National Register of Historic Places or in a designated historic district. If the building was constructed before 1936 but not on the Register, the individual could apply to receive a 10 percent federal tax credit.

The Tax Cuts and Jobs Act, however, now requires individuals to receive portions of the 20 percent credit over a five-year period, rather than in one lump sum. Congress also removed the 10 percent credit altogether.

The federal historic tax credit is used to help offset the enormous cost of rehabilitating an old building.

“A lot of projects that we’ve worked on would not even be feasible financially if it weren’t for that sort of tax credit being available,” said Eric Pros, project design manager at D.S. Architecture, which recently has helped renovate several buildings in Portage County. “The cheapest thing to do would to be to not reinvest in these old buildings, or the people that do have them would not be able to do as good of a job restoring them.”

Pros helped design two projects that used the federal historic tax credit in Portage County: Ravenna’s Phoenix Block, which was renovated in 2016, and the L.N. Gross Building in Kent, which was finished last year and now houses his company.

“With historic buildings...it was interesting going and seeing the existing conditions and how bad some of those conditions were, and then seeing the details on how to fix it,” Pros said. “Seeing the final result was a really incredible experience.”

Modern upgrades often are necessary to keep the structure up to code, but tax credits can only be used for restoring the historical aspects of the building. Pros said this is another reason federal aid is so crucial in completing the projects.

“The big goal of having these rules is to maintain the character of the building,” he said. “You can clearly respect the new aspects and understand the old as well.”

The Phoenix Block received funding from state grants, historical societies and loans from a local bank. The federal HTC was the second-highest amount of funding for the project -- second only to the state tax credit, which was roughly $100 more. The project was approved for $366,132 in federal tax credit, accounting for nearly 20 percent of the $1,986,682 used to help fund the project.

Under the rules that took effect Jan. 1, this project would have received $72,226 each year for five years, rather than receiving the lump sum at first.

Nationwide, the National Park Service certified 1,039 historic-preservation projects in 2016. The NPS estimates the average investment of these completed projects was $5.8 billion, creating more than 100,000 local jobs.

Advocacy groups including Heritage Ohio sprang into action when word spread that the credit was on the chopping block last fall. Executive Director Joyce Barrett helped lead this statewide effort.

“We knew it was coming; (then) we had to get to work,” Barrett said. “We reached out to our friends across the state.”

As the tax bill was rewritten multiple times from one legislative body to the next, advocates called Ohio lawmakers, wrote editorials in newspapers, lobbied Congress members and accumulated thousands of signatures on a Change.org petition. Barrett said they met on a conference call every Monday to touch base and figure out the next plan of action for the new week.

“(Barrett) was able to join these forces together in this...‘Ohio movement’ to support the federal historic tax credit,” said Pfister.

Congress members sought to overhaul the U.S. tax code to provide tax cuts to Americans and simplify its rules. Pfister added that the 10 percent HTC was not used as often, which could explain why it was repealed under the new bill.

If both the 20 percent and 10 percent federal historic tax credits had been eliminated, Ohio projects could still attempt to get credit through the state’s program, which is managed by the Ohio Development Services Agency. Ohio’s state tax credit is independent from the federal program and undergoes a separate review process. In addition, individuals receive a higher tax credit - 25 percent - through the state than the federal program. A person can receive both federal and state tax credit for renovating a structure.

Some states, however, do not have their own tax credit program, which is why Barrett said keeping the federal credit was crucial.

“Thirty-six states have state historic tax credits,” Barrett added. “What if the federal went away? Would there be enough for the state?”

What happens now?

To receive credit according to the old rules, you must have had possession of the property by Dec. 31, 2017, and work must commence within 180 days after the tax law was passed. No further information has been released on what the transition rules entail.

Tom Boccia, a Cleveland-based tax accountant, specializes in the historic tax credits and has worked alongside numerous Northeast Ohio projects. He said the changes to the tax credit could affect investors’ and developers’ interest in pursuing new historic rehabilitation projects.

“[The change] just means that the investor can’t get that credit all up front,” Boccia said, “so they’re not going to invest the same dollars to get credit over five years versus one year.”

Boccia said this has real economic cost to a developer, and could prevent future projects from completion.

“That delta between what they were getting before and what they’re getting now, it’s got to come from somewhere,” he said. “That could cause projects to not go forward.”

This collaboration is produced in association with Media in the Public Interest and funded in part by the George Gund Foundation.




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A plan to use public money to fund vouchers for students to attend private schools is drawing pushback from Louisiana teachers, who say the plan could devastate the public school system.

The program making its way through the Louisiana Legislature would be first available to low-income students and by the 2027-2028 school year, it would be available to all students.

Larry Carter, president of the Louisiana Federation of Teachers, predicts the plan could cause significant budget cuts for public schools.

"These universal voucher bills are a step in the wrong direction," Carter argued. "We've seen in other states around the country, like Arizona and Ohio, where these bills have been passed, they're now facing a budget crisis, and we're hoping that we cannot go down that same road."

Carter pointed out the education savings account program known by the acronym LA GATOR would allow as much as $7,500 per student from families below 250% of the Federal Poverty Line, and $5,000 for those who make more.

The plan, House Bill 745 and companion Senate Bill 313, has been approved by the state House. The Senate is expected to vote on it by Friday or Monday.

Carter explained teachers are concerned classroom standards currently mandated for public schools would not be upheld in private or parochial schools.

"We want to make sure it has some accountability," Carter emphasized. "We think that's at least giving all education stakeholders and parents an opportunity to talk about whether this program is successful or not. And through accountability practices, we think that will help."

There is concern the plan would force public schools to eliminate many positions and needed programs. Carter fears the loss of funds could deprive students of the benefits of a public school education.

"If we're cutting that funding stream, Louisiana students will have fewer nurses and counselors, less options for after school program, and certainly limited access to field trips and AP courses that help prepare them for their next step in life," Carter outlined.

New York City advocates are excited yet concerned about the 2025 budget.

In recent weeks, funding was restored to certain education programs such as shelter-based community coordinators. They helped more than 40,000 city students living in temporary housing. Funding for school psychologists and social workers was also restored.

Randi Levine, policy director at Advocates for Children of New York, said other programs need to be saved.

"Funding is running out for the Mental Health Continuum, which is a program that provides students in 50 schools with access to expedited mental health care, and is very important especially when we have a youth mental health crisis," Levine asserted.

Other programs facing cuts include restorative-justice practices which help schools reduce suspension. The budget's feedback has been mixed considering many programs will stay, although some could still be cut. Although the programs began using short-term funding, Levine feels their lasting effects in a post-pandemic world make them a permanent necessity.

Immigrant education programs are on the chopping block too. Promise NYC provides child care for kids regardless of their immigration status, and the immigrant family communication and outreach initiative helps parents who do not speak English learn about their kids' school.

Murad Awawdeh, president and CEO of the New York Immigration Coalition, said it would be a mistake to cut funds for things such as the language access program.

"That program, which would expand language access across the city of New York, which would build an interpreter bank as well as build translation cooperatives across the city and could save the city millions of dollars, was defunded and not restored," Awawdeh pointed out.

He added the recently passed state budget does give New York City enough funding to restore certain initiatives, but not enough to bolster others. Awawdeh argued with housing unaffordability continuing and people struggling to make ends meet, the city has to step up to aid everyday New Yorkers.


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It might not be surprising that North Dakota ranks low for electric vehicle adoption, but existing owners say they are frustrated elected officials here resist the movement, making it hard for this consumer activity to flourish in a rural state.

Gov. Doug Burgum and the state's two U.S. senators have recently spoken out against regional and federal efforts to aid in the transition to EVs.

Shannon Mohn, a member of the North Dakota EV Owners group and automotive instructor at Minnesota State Community and Technical College, said there is too much politics surrounding the issue, leaving states such as his behind in adding fast charging stations. He wants officials to know there are people in the region not worried about being left in the cold by EVs.

"I don't worry about driving anywhere with my electric car, I really don't," Mohn emphasized. "I can make it there and back without a problem."

He noted a big factor is that he can charge it at home and park it in his garage on cold nights. Mohn acknowledged it takes additional planning to cross North Dakota, given the current infrastructure landscape. North Dakota is using federal money awarded to states to enhance its charging network, but Sen. Kevin Cramer, R-N.D., has contended incentives are a waste, arguing there is not a strong market.

Mohn pointed out while EVs might see their range affected by the cold, gas-powered cars are less efficient in the winter, too. He feels dotting the state with more charging stations will naturally attract more EV owners. He also contended there is an economic benefit for rural areas because tourists are likely to make a pit stop in smaller towns if they can charge up.

"I won't go and visit a town that doesn't have a charger if I'm traveling," Mohn explained. "I will bypass their towns and go to a town that does have a charger."

The Bureau of Labor Statistics said even with political forces and other factors at play, many forecasts still expect a strong acceleration in EV adoption. Mohn is glad the Biden administration has been aggressive in gaining momentum but feels some mandates invite opponents to ramp up attacks deemed political. He recommends more outreach for the public to learn about the cars as the industry monitors growth trends.


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