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The Daily Tar Heel

McCrory looks to reinstate tax program

Nearly 5,000 people in North Carolina have come together by signing a petition backing Gov. Pat McCrory’s goal to reinstate the Historic Tax Credit program.

The previous Historic Tax Credit Program ended Dec. 31, and the governor is looking to usher in a new program.

Susan Kluttz, secretary of the Department of Public Resources, said that this date is a “sunset date.” She said the date was put into place to give state officials a chance to reexamine the legislation and see if it continues to be economically or socially beneficial.

“I do not believe that the discussion is former historic tax credits versus new legislation, but the discussion of keeping historic tax credits in general,” said Cary Cox, spokeswoman for the department.

The Historic Tax Credit Program gives tax incentives to homeowners and businesses if they restore historic homes and buildings — accounted for on the National Register of Historic Places — following set guidelines. 

Some of the places that fall under this designation in Chapel Hill include Beta Theta Pi Fraternity House, Old Chapel Hill Cemetery and Chapel of the Cross.

The new tax credit program is different from the previous one because the tax incentives offered are smaller. 

Petitioners are worried that if McCrory’s legislation does not pull through, North Carolina will be completely without incentives to restore and maintain historic buildings.

The previous Historic Tax Credits has pumped $1.6 billion from private investments into the local North Carolina economy since 1998.

Of North Carolina’s 100 counties, 90 have used the Historic Tax Credit system in the restoration of historic buildings.

The state's Department of Cultural Resources said these tax credits not only increase the aesthetic appeal of an area but also stimulate job growth and reduce crime rates.

The petition is a combined effort by the North Carolina Metro Mayors Coalition and North Carolina Department of Cultural Resources to ensure that North Carolina continues to have these tax credits. 

Though the new program proposed by the governor proposes fewer tax exemptions for the restorations of historic buildings, the coalition still believes that the legislation will encourage restoration.

Cox said the state acknowledges citizens' concerns that the tax credits are unnecessary, and supporters of the incentives are trying to find the best compromise to bring to legislators in the hopes of having the legislation passed.

“We are faced with some people wanting to do away with tax credits,” said Kluttz. "We have the petition to tell the legislators we want a program and we are supporting his program. Without his program, we would have nothing."

state@dailytarheel.com

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