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Republican efforts in Congress to overhaul the tax code could deal a big blow to historic preservation efforts across the nation. Though a weaker form of the federal Historic Tax Credit (HTC) would remain in the Senate version of proposed legislation, it would be completely eliminated in the House version.

鈥淲e think it will have a huge negative effect if it is eliminated in its entirety,鈥� said Peter Meijer, founder of Peter Meijer Architect PC, which specializes in preserving historic structures. 鈥淚 am basing that on the fact that older properties are tougher on development and construction side. The tax credit has been crucial.鈥�

The HTC provides a 20 percent tax credit for developers who rehabilitate income-producing buildings deemed 鈥渃ertified historic structures鈥� by the U.S. Interior Secretary, through the National Park Service. There is a 10 percent tax credit for non-historic buildings brought into service before 1936.

The HTC has helped developers transform aging structures into housing or mixed-use spaces rather than demolishing them. Locally, the credit helped pay for revitalization of the White Stag Block, the Wells Fargo Building, the Erickson Fritz Apartments and others.

鈥�(The Erickson Fritz Apartments) was a $15 million project and we had $2.2 million worth of HTC,鈥� said Julie Garver, housing development director for Innovative Housing Inc. 鈥淚t was a critical funding source. It covered the cost of the seismic retrofit and a lot of the historic elements.鈥�

The HTC can be combined with other incentives to move forward projects that wouldn’t otherwise. Critics say the credit doesn’t do enough to warrant its cost.

鈥淚t is a very small percentage of development,鈥� Meijer acknowledged. 鈥淭here are far more (projects) that don’t take the tax credits.鈥�

Part of that is due to program restrictions. In order to qualify for the HTC, developers must spend at least as much as the structure’s assessed value. While only a few developers may use the credit, proponents argue it’s essential for certain projects.

鈥淚t isn’t a huge program, but it packs a huge punch,鈥� said Peggy Moretti, executive director of Restore Oregon.

The HTC has been used by Oregon developers on projects totaling nearly $640 million since 2001, according to Restore Oregon. Nationwide, the credit has leveraged more than $84 billion of improvements and helped preserve 42,293 structures since its inception in 1976, according to the National Park Service.

鈥淭he value of the projects is quite significant,鈥� Moretti said. 鈥淚t has benefited Portland greatly. Portland has gotten the lion’s share. It makes more sense from a sustainability standpoint to refurbish buildings that are already there. It has helped retain the sense of place.鈥�

Moretti also pointed to a 2015 Rutgers study that found the program produced an estimated $1.20 in tax revenue for every $1 spent.

鈥淭here is no downside to this from an economic or public policy standpoint,鈥� she said.

The Senate passed a bill that would keep the HTC at 20 percent, but at 4 percent per year over five years. That version is before a conference committee as it seeks to work out differences from the House version. So, the HTC’s fate essentially hasn’t been decided yet.

鈥淚 just think it defies logic to do away with something that turns a profit,鈥� Moretti said. 鈥淪ome of these tax breaks are pork, but that is not the case with this one. We’re hoping reason will prevail.鈥�

If legislation eliminates or significantly weakens the tax credit, many preservationists would likely look elsewhere for financial assistance.

鈥淭here has been the discussion at the state level to craft a state version (of the HTC),鈥� Garver said. 鈥淭he state credit could step in and help save some of those projects.鈥�

The preservation community is hoping that won’t be necessary. Developers, architects and preservationists are lobbying members of Congress in an attempt to save the HTC. One of their biggest allies has been U.S. Rep. Earl Blumenauer, D-Ore.

鈥淲hy would House Republicans take away a tool that has been used in more than 100 projects around Oregon and created millions of jobs across the country,鈥� Blumenauer stated via email. 鈥淚t’s ridiculous.鈥�