RESOLUTION NO. _____, SERIES 2018
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A RESOLUTION URGING THE GENERAL ASSEMBLY AND THE GOVERNOR OF THE COMMONWEALTH OF KENTUCKY TO INCREASE THE HISTORIC TAX CREDIT CAP FROM FIVE MILLION DOLLARS TO TEN MILLION DOLLARS.
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SPONSORED BY: COUNCIL MEMBERS LEET, PARKER, AND KRAMER
WHEREAS, the Federal Historic Tax Credit program (HTC) as we know it today was put in place by Congress and the Reagan Administration to encourage historic rehabilitation projects that help to stimulate local economies; and
WHEREAS, since the inception of the HTC, it has created over 2.4 million jobs, rehabilitated more than 42,000 buildings, and leveraged $131.8 billion in private investment; and
WHEREAS, recognizing the importance of this successful economic development program, more than 35 states have enacted complementary state historic tax credit programs to help revitalize the commercial communities; and
WHEREAS, Federal HTC projects have a 99 percent success rate, and are able to leverage four private dollars for every one dollar of federal support, and are catalyst for building neighborhood confidence and generating follow-on projects in a multi-blocks radius; and
WHEREAS, over the life of this program, the HTC has generated $29.8 billion in Federal tax revenues compared to $25.2 billion in credits allocated-more than paying for itself; and
WHEREAS, Kentucky is the sixth-biggest user of the Federal HTC program; and
WHEREAS, with a $5 million annual aggregate cap and $400,000 per-project cap, Kentucky’s state credit is one of the most limited in the country; and
WHEREAS, the Federal and State HTC programs have a long history of encouraging reinvestment in suburban and urban areas all while stimulating economic development, creating jobs and creating smart neighborhood growth and sustainability; and
WHEREAS, the Commonwealth’s HTC Program paired with the federal HTC program has made it possible the rehabilitation of many historic buildings in our community.
NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATIVE COUNCIL OF THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT (THE COUNCIL) AS FOLLOWS:
SECTION I: The Louisville Metro Council recognizes and supports increasing Historic Tax Credit program and urges the General Assembly and Governor of the Commonwealth of Kentucky to increase the Historic Tax Credit cap from five million dollars to ten million dollars.
SECTION II: A copy of this Resolution will be sent to the members of the General Assembly and the Governor of the Commonwealth.
SECTION III: This Resolution shall take effect upon passage and approval.
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_______________________________ H. Stephen Ott Metro Council Clerk |
_____________________________ David James President of the Council |
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_______________________________ Greg Fischer Mayor |
_____________________________ Approval Date |
APPROVED AS TO FORM AND LEGALITY:
Michael J. O’Connell
Jefferson County Attorney
BY: ____________________________
R-013-18 CW Leet Resolution Historic Tax Credit 1-22-18.docx