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Tax Credits & Loans: Commercial: State:
Economic and Fiscal Impact Analysis SUMMARY

IMPACTS of the RI Historical Preservation Investment Tax Credit, 2001-2004
(Based on a study (pdf), performed by the real estate consulting and investment firm of Lipman, Frizzell and Mitchell, of 111 projects enrolled in the program through September 23, 2004.)

Projects:
>$484.91 million in private investment in 111 projects statewide

Wages/Jobs:
>$289 million wages for 8,728 construction period jobs
>(5,334 construction jobs paying $184.9 million)
>(3,394 indirect employment jobs paying $103.6 million)
>$154 million annual wages for over 3,000 permanent jobs

Housing:
>1,699 residential units rehabilitated
>409 (24%) low/moderate-income units

Economic Growth:
>$795.25 million economic output

Leverage:
>$1 in tax credit created $5.47 economic output

Neighborhoods:
>75% of the projects and 83% of the total investment occurred in census tracts where family income levels were below the RI statewide median of $52,781.

Tax Cost:
$145.47 in tax credits spread over 2003-2007 (average $29.5 million per year)

Tax Gain:
>$29.1 million new tax revenue during construction period (before credits issued)
>$42.14 million present value of future taxes paid by new jobs and households
>$179.4 present value of increase in local property tax revenue

The RI Economic Policy Council calls it "one of Rhode Island's most effective tax incentives.... There is no question the tax credit program has spurred mill renovation activity at levels that no one thought possible in the 1990s." (EDC 2004-2005 Economic Performance Scorecard)

Grow Smart Rhode Island, which sponsored the LFM study, stated: "At a time when Rhode Island's open space and farmland are still under tremendous development pressure and our cities and towns are struggling to expand their tax base, the Historic Preservation Investment Tax Credit is helping to address both of these challenges. This is the single best economic development and neighborhood revitalization tool the state has seen in decades. This is about new jobs, new residents and new vitality."

Click here for the complete study (pdf).

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