Assemblywoman Donna Lupardo (D-Endwell) announced today that Governor David Paterson signed into law legislation she co-sponsored to improve the State’s Historic Preservation Tax Credit. This will expand New York's first-ever rehabilitation tax credit (Ch. 547 of 2006) for homeowners and developers to make improvements to existing vacant, underutilized, and deteriorating buildings.

The new law will gradually increase over five years the cap on the commercial credit value from $100,000 to $5 million and the residential credit value from $25,000 to $50,000. Both residential and commercial programs must be properties listed on the National Register of Historic Places and located in distressed areas where the median income is at or below 100 percent of the state’s median family income.

In addition, commercial property owners will be able to claim 20 percent of rehabilitation costs, up from 6 percent under the previous law. Homeowners earning below $60,000 per year have an opportunity to receive their tax credit as a refund.

“Downtown centers in the City of Binghamton and the villages of Endicott and Johnson City could benefit substantially with added incentives to prioritize the redevelopment of historic buildings,” said Assemblywoman Lupardo, who co-sponsored the legislation. “Our historic buildings are a tremendous asset to our communities and this legislation could direct significant resources to making these structures vibrant and essential again. The Historic Rehabilitation Tax Credit is a cost effective program that will provide real incentives to stimulate development, create jobs and increase property values.”

"This legislation offers economic incentives that will spark development, create jobs, increase property values, and restore civic pride," said Mayor Matthew Ryan, City of Binghamton. "Our historic building stock offers great potential for smart growth and adaptive re-use, and over the past few years, an increasing number of our historic buildings have been saved and converted into mixed-use spaces for small businesses, students, young professionals, families and retirees. The improved Historic Rehabilitation Tax Credit will be of great help as we continue revitalizing our neighborhoods and commercial districts."

“The Historic Property Tax Credit is critical for us achieve the necessary funding for The Goodwill Theatre project,” said Naima Kradjian, Executive Director of The Goodwill Theatre. “The new tax credit has the potential to bring $20 million of new investment to The Goodwill Theatre project in Johnson City, as well as significant ongoing annual investment when the Goodwill Theatre Professional Training Academy opens. The ripple effect of this infusion of purchasing power will result in the revitalization of the very center of the Southern Tier and the downtown urban core of the Village of Johnson City.”

Assemblywoman Lupardo added that both City of Binghamton Mayor Matthew Ryan and Naima Kradjian, Executive Director of The Goodwill Theatre, wrote letters to Governor Paterson urging him to sign the legislation and detailing the significance to our communities in the Southern Tier. She also said the new law will apply to taxable years beginning on and after January 1, 2010 and it is scheduled to sunset December 31, 2014.