By Stephen Smoot
Some of the most remarkable adornments for West Virginia’s brilliant natural scenery come
from the historic structures that dot the landscape and enrich the aesthetic and community pride
of towns and cities across the Mountain State.
Passage of a bipartisan bill in the United States Congress backed by Senators Shelley Moore
Capito and Mark Warner of Virginia will provide more support for “rural home owners and
small developers.” According to a release from Capito’s office, the goal lies in trying to “reduce
cost-burdens” to those working to “preserve our communities’ history and revitalize local
Economies.”
The act is also expected to help spur creation of more affordable housing options in rural areas.
Tax credits in rural areas eligible for the increased credit will find that credit hiked from 20 to 30
percent – except for those using it to create affordable housing. Those projects would be eligible
for a 40 percent tax credit.
Another benefit to those using it for affordable housing, it can be used in addition to the Low-
Income Housing Tax Credit.
According to the United States Department of Housing and Urban Development, the tax credit
“is a financial incentive that supports investment in historic buildings. It encourages private
property owners to rehabilitate historic properties for income-producing use, such as rental
housing, office, retain, manufacturing, and entertainment space.”
It goes on to suggest that “HTC projects can be catalytic for community revitalization,”
providing as an example, communities with a “white elephant” building, such as a closed
schoolhouse. Such structures “may qualify for the program.”
A map on the same webpage showed that Pendleton County had one project between 2002 and
2016 that utilized the tax credit.
Those with projects eligible for the Historic Tax Credits can apply through a non-competitive
and open process, according to HUD. Also “the scope of work must meet the requirements of ‘a
certified historic rehabilitation’ and must make a ‘substantial investment on the property.”
Three years ago, the State of West Virginia made a stronger commitment to preserving historic
structures for use. That bill also increased the historic tax credit available, but from the State of
West Virginia. The West Virginia State Historic Preservation Office applications as of 2022
follow the same procedural rules as the National Park Service. Moreover, the federal bill passed
last month further “aims to streamline processes (and) reduce cost-burdens” on such projects.
Federal and state historic tax credits can also be taken at the same time, providing further
incentive for use.
One of the reasons for the bill, as explained in the Capito release, states that “currently, many
historic tax projects are not economically viable in small and rural areas, giving a
disproportionate advantage of the credit to large urban developments.”
“Being a rural state shouldn’t mean losing out on private investment incentives like tax credits to
help us preserve our communities’ history and revitalize local economies,” explained Capito.
