The National Park Service (NPS) recently released a report entitled “Federal Tax Incentives for Rehabilitating Historic Buildings, Annual Report for Fiscal Year 2014.” Featured on the cover is a project we know well, The Arcade, located in Providence, Rhode Island. Clocktower placed the Arcade’s Rhode Island state historic tax credits with two of its investors, raising over $1.5 million for the project.
The developer, Granoff Associates, converted the nation’s first indoor mall, built in 1828, into first floor retail space and 48 rental apartments, 38 of which are considered “micro-apartments”. The Arcade’s micro-apartments are the first of their kind in Providence, following a trend seen in Boston and New York of downsizing units to attract millennials who only require the bare essentials in a living space, at an affordable rent.
The Arcade was one of 762 historic projects certified by NPS last year. Those projects accounted for $4.32 billion in rehabilitation work and created 77,762 jobs. It’s no wonder the Federal Historic Tax Credit is considered one the nation’s best drivers of economic growth.
The report also highlights the benefits of “piggy-backing” state historic tax credits with the federal historic tax credit. State historic credits are now available in over thirty states. They come in many shapes and sizes, but all are useful incentives, and are frequently the difference between a project getting the green light or remaining on the drawing board.
We congratulate the Granoff Associates team on a visionary project, and on the honor of being featured in the NPS Historic Credit Annual Report. The report can be viewed online at http://www.nps.gov/tps/tax-incentives/reports.htm. If you are interested in learning more about how state or federal tax credits can benefit your historic renovation, please contact us for more information.