at the state’s program awarding tax credits for historic preservation.
In an audit released Tuesday, Schweich said the state has spent $1.1 billion over ten years on the credits — to little effect.
“The state’s HPTC program is an inefficient use of state resources,” he said. “Only 49 cents to 85 cents of every tax credit dollar issued actually goes toward rehabilitation costs. The remainder goes to investors, tax credit brokers or syndicators, and the federal and state government in the form of income taxes.”
Under the historic preservation tax credit program, eligible developers are awarded credits against their state tax liability. They can then sell those credits and use the cash for their projects.
The buyers — who obtain the credits at a discount from their face value — use them to offset state tax liability, costing the state revenue.
Schweich also said the state could cut the HPTC program almost in half and still have the largest such program in the nation.