Possible cut to 'Historic Tax Credit' has some property developers delaying plans

Possible cut to 'Historic Tax Credit' has some property developers delaying plans

Real estate developer Arun Agarwal described plans to renovate the historic creamery building in Old Market, but he said it all depends on what happens with a proposed cut to the "Historic Tax Credit."

"All of these would have to be open back up, all of these would be turned into windows or store front entries for stores," said Agarwal, of White Lotus Group.

The "Historic Tax Credit" is on the chopping block in tax reform bill introduced in the House.

If it happens, Agarwal said he may be forced to abandon his plans to convert an Old Market building into commercial space.

"To be a part of this program, we have to maintain those historical characteristics and features which are very difficult and less efficient than today, and there's an additional cost to that," said Agarwal.

The tax credit is meant to off-set that cost. It accounts for up to a 20% tax deduction for eligible renovation expenses.

The group Restoration Exchange Omaha says Dundee Bank in Blackstone used the credit.

While some say cuts on the federal level need to be made somewhere, others say this particular credit should be off the table.

"People tend to go to those places that are unique and those places that have character and that's what those old buildings and old homes provide," said Kristine Gerber of Restoration Exchange Omaha.

She said developers are now waiting to see what happens.

"I think we as a community have to make that decision," said Agarwal. "We have to decide whether or these buildings and that history is really important to us."

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