Exhibit B~3.pdf

Annual Report on the Economic Impact of the Federal Historic Tax

Credits for Fiscal Year 2020

National Park Service U.S. Department of the Interior Technical Preservation Services

A Message from the National Park Service

Beyond the National Park System, the National Park Service (NPS) through its Cultural Resources, Partnerships, and Science programs is part of a national preservation partnership working to promote the preservation of historic resources in communities small and large throughout the country. For the past 43 years the NPS, in partnership with the State Historic Preservation Offices, has administered the Federal Historic Preservation Tax Incentives Program. The program provides a 20% Federal tax credit to property owners who undertake a substantial rehabilitation of a historic building in a business or income-producing use while maintaining its historic character.

Commonly referred to as the Historic Tax Credit (HTC), the HTC is designed to not only preserve and rehabilitate historic buildings, but to also promote the economic revitalization of older communities in the nation’s cities and towns, along Main Streets, and in rural areas. Since the program’s inception in 1976, the NPS has certified the rehabilitation of more than 46,000 historic properties throughout the United States, with the HTC leveraging over $181.0 billion in private investment in historic rehabilitation and generating over 2.9 million jobs.

In Fiscal Year (FY) 2020, the NPS certified 989 completed historic rehabilitation projects, representing $6.5 billion in estimated rehabilitation costs that qualify for the 20% Federal tax credit. Another 1,282 proposed projects were also approved in FY 2020. Many of these projects involved buildings that were abandoned or underutilized and in need of substantial rehabilitation to return them to, or for their continued, economic viability. The HTC program also is an important tool in helping to revitalize older, economically depressed communities. Based on project data provided by the NPS, PolicyMap determined that 51% of the certified rehabilitation projects in FY 2020 were located in low- and moderate- income census tracks and 75% were located in economically distressed areas.

A common misconception about the HTC program is that it only supports large projects and projects in large cities. Almost half (46%) of all projects in FY 2020 were under $1 million, and 19% were under $250,000.

PolicyMap determined that 29% of all certified rehabilitation projects in FY 2020 were located in communities with under 50,000 in population and 17% in communities with under 25,000 in population.

The NPS issues annual reports on the HTC program quantifying the number of historic rehabilitations certified each year, their reported costs, and other statistical information on the program. The annual report is available on the NPS Technical Preservation Services website at http://www.nps.gov/tps/tax-incentives.htm, along with information on the HTC program in general.

For FY 2020, the NPS also turned to the Rutgers University Center for Urban Policy Research, through a cooperative agreement, to undertake and report on the economic impacts of the HTC for the fiscal year ending September 30, 2020. This report highlights its main findings. An economic model originally developed by the Center under a series of grants from the NPS was utilized in the preparation of this report. The economic model was utilized by the Center for their prior reports on the Federal HTC, as well as for a number of other economic reports for state governments and others.

As the Center’s report identifies, the level and breadth of the positive economic impacts resulting from the Federal HTCs in FY 2020 are quite significant. The report also includes information on the cumulative economic impact of the Federal HTCs for the past 43 years, starting in 1977–78 with the first completed rehabilitation project to be certified by the NPS under the program. Lastly, the report includes several case studies of HTC projects certified in FY 2020. The program remains the Federal government’s largest and most effective program supporting historic preservation and community revitalization.

Technical Preservation Services, National Park Service November 2021

Executive Summary

Overview of the Rutgers Economic Analysis The Federal Historic Tax Credit (HTC) is a Federal income tax credit that promotes the rehabilitation of income-producing historic properties. This study examines the economic impacts of the HTC (a 20% credit since 1986) by analyzing the economic consequences of the projects it supports. This analysis focuses on the economic effects of these projects during construction, quantifying the total economic impacts (i.e., direct as well as multiplier, or secondary, economic consequences) for the Fiscal Year 2020, beginning October 1, 2019, and ending September 30, 2020, and for the period since the program’s inception (beginning in FY 1978, with the certification of the first completed rehabilitation project under the program). The study utilizes the Preservation Economic Impact Model (PEIM), a comprehensive economic model developed by Rutgers University Center for Urban Policy Research for the National Park Service.

The current analysis applies the PEIM to both cumulative (FY 1978 through FY 2020) HTC-related historic rehabilitation investment (about $181.0 billion in inflation-adjusted 2020 dollars) and single-year (FY 2020) HTC-related rehabilitation investment (about $7.3 billion). It considers the effects of the cumulative $181.0 billion rehabilitation investment as if it applied to one year (2020), rather than backdating the PEIM for each of the 43 years in the study period. It also considers the full rehabilitation investment associated with the HTC (e.g., $7.3 billion in FY 2020), and not the somewhat lower amount reported by the National Park Service based on estimated qualified rehabilitation costs indicated by property owners requesting certification of rehabilitation for purposes of the tax credit (e.g., $6.5 billion in FY 2020).1

PEIM results include many fields of data. The fields most relevant to this study include:

JOBS Employment, both part- and full-time, by place of work, estimated using the typical job characteristics of each industry.

INCOME “Earned” or labor income; specifically, wages, salaries, and proprietor income.

WEALTH Value-added—the sub-national equivalent of gross domestic product (GDP).

OUTPUT The value of shipments, as reported in the Economic Census.

TAXES Tax revenues generated by the activity, which include taxes to the Federal government and to state and local governments.

1 The HTC has a multi-step application process, encompassing Part 1 (evaluation of the historic significance of the property), Part

2 (description of the proposed rehabilitation work), and Part 3 (request for certification of completed work). Both Part 2 and

Part 3 rehabilitation statistics include only costs considered “eligible” or “qualified” for the tax credit under the Internal Revenue

Code (Qualified Rehabilitation Expenditures, or QREs), as opposed to “ineligible” or “nonqualified” costs. While the ineligible/ nonqualified expenses do not count for tax credit purposes, they are a component of the total rehabilitation investment or cost borne by the HTC property owner. In practical terms, the total rehabilitation investment, including ineligible/nonqualified costs, helps pump prime the economy. For example, in FY 2020, the certified rehabilitation (Part 3) qualified rehabilitation expenditures amounted to about $6.5 billion, while the total rehabilitation outlay associated with the HTC was an estimated $7.3 billion.

West Pullman Elementary School after rehabilitation. Left: Corridor looking toward open stairwell. Right: Historic school cabinets in a new apartment.

Photos: Lee Bey

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2020 1

National Economic Impacts The following table summarizes the impacts of the HTC in inflation-adjusted 2020 dollars for each of these economic measures for the cumulative period FY 1978-2020 and for FY 2020.

FEDERAL HTC-ASSISTED REHABILITATION

National Total Impacts 2020 $ billion

$181.0 billion

CUMULATIVE (FY 1978–2020)2

historic rehabilitation expenditures results in:

$7.3 billion

ANNUAL FY 2020

historic rehabilitation expenditures results in:

Jobs (person-years, in thousands) 2,908 122

Income ($ billion) $143.6 $5.2

Output ($ billion) $391.5 $13.8

GDP ($ billion) $195.2 $7.0

Taxes ($ billion) $55.6 $1.8

Federal ($ billion) $39.4 $1.2

State ($ billion) $8.0 $0.3

Local ($ billion) $8.2 $0.3

The benefits of investment in HTC-related historic rehabilitation projects are extensive, increasing payrolls and production in nearly all sectors of the nation’s economy. The cumulative effects for the period of FY 1978 through FY

2020 are illustrative. During that period, $181.0 billion in HTC-related rehabilitation investment created 2,908,000 jobs and

$195.2 billion in GDP, about 30% of which (892,000 jobs and $57.9 billion in GDP) was in the construction sector. This is as one would expect, given the share of such projects that require the employment of building contractors and trades. Other major beneficiaries were the service sector (527,000 jobs, $25.9 billion in GDP), the manufacturing sector (612,000 jobs, $51.6 billion in GDP), and the retail trade sector (411,000 jobs, $13.8 billion in GDP). As a result of both direct and multiplier effects, and due to the interconnectedness of the national economy, sectors not immediately associated with historic rehabilitation, such as agriculture, mining, transportation, and public utilities, benefit as well. (see Exhibit 3.1).

The most recent economic benefits of the federal HTC are also most impressive. In FY 2020, HTC-related investments generated approximately 122,000 jobs, including 42,000 in construction and 27,000 in manufacturing, and were responsible for $7.0 billion in GDP, including $2.3 billion in construction and $2.0 billion in manufacturing. HTC-related activity in FY 2020 generated $5.2 billion in income, with construction ($1.9 billion) and manufacturing ($1.2 billion) reaping major shares. (See Exhibit 3.2)

2 Changes in the official annual reported rates of inflation caused the Rutgers research team to make various changes in the calculations concerning the economic impacts of the HTC over time. The changes are particularly notable over the past few years when job counts ensuing from the HTC had to be adjusted.

2 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY

The HTC National and State Economic Impacts

A breakdown by state of the national economic benefits, both for FY 2020 and cumulatively for the last five fiscal years

(FY 2016–2020), shows the benefits of the program on the national economy. (See Exhibits 2.1 and 2.2)

HTC-related historic rehabilitation investment benefits state economies as well as the national economy. For example, in

Minnesota in FY 2020, Federal HTC-related rehabilitation activity totaled about $58.7 million. The national impacts of that investment included 924 jobs, an additional $109.6 million in output, $41.2 million in income, $55.5 million in GDP, $9.5 million in Federal taxes, and $13.9 million in total taxes. In Minnesota alone, the same $58.7 million in HTC-related spending resulted in 526 jobs, $58.7 million in output, $26.1 million in income, $32.1 million in gross state product (GSP), and $7.1 million in total taxes.

HTC Impacts Compared with those of Non-Preservation Investments

How does HTC-related historic rehabilitation perform as an economic pump primer compared with other, non-preservation investments? In short, quite well. Numerous studies conducted by Rutgers University have shown that in many parts of the country, a $1 million investment in historic rehabilitation yields markedly better effects on employment, income, GDP, and state and local taxes than an equal investment in new construction or many other economic activities (e.g., manufacturing or services). These findings demonstrate that historic rehabilitation, combined holistically with the many activities of the broader economy, delivers a commendably strong “bang for the buck.”

The Cost of the HTC The HTC is a tax expenditure and has a public cost. In the simplest terms, the Federal cost of the HTC is equal to the credit percent (20% since 1986) applied to the Part 3 qualified rehabilitation expenditures.3 Applying that calculation, the federal HTC costs the U.S. Treasury approximately $34.3 billion (in inflation-adjusted 2020 dollars) over the period of FY 1978 through FY

2020, while the cost for projects certified by the National Park Service in FY 2020 alone was about $1.308 billion.4 Weighing against these costs are the significant economic impacts (i.e., jobs, income, GDP, and output) and tax revenue (Federal, state, and local) generated by HTC-aided rehabilitations and documented in this study. An important finding is that the HTC yields a net benefit to the U.S. Treasury, generating $39.4 billion in federal tax receipts over the life of the program, compared with

$34.3 billion in credits allocated. (See Exhibit 1)

Residents and community members relax in the lounge of the West Pullman School Senior Community. Photo: Lee Bey

3 See footnote 1, on page 1.

4 These estimates are based on the full utilization of the credits in cases of certified rehabilitations. For various reasons, not all completed projects certified by the National Park Service may ultimately utilize the credit. Their economic impact, nevertheless, remains.

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2020 3

Fiscal Year 2020 Highlights

$ 7.3 billion Total in rehabilitation investment

2020 POSITIVE IMPACTS

on the national economy:

$13.8 billion in output, $7.0 billion in GDP, $5.2 billion in income, and $1.8 billion in taxes, including $1.2 billion in Federal tax receipts.

51% Projects in low- and moderate-income census tracts*

75% Projects in economically distressed areas*

29% Projects in communities of less than 50,000 people*

Projects by Community Size (Population)*

17% Less than 25,000

12% 25,000 to 49,999

11% 50,000 to 99,999

21% 100,000 to 249,999

24% 250,000 to 500,000

15% Over 500,000

122,000 New jobs created and billions of dollars in total (direct and secondary) economic gains

* Courtesy of PolicyMap (Estimated Population, 2015–2019. United States Census Bureau, American Community Survey 5-year estimates. New Markets Tax Credit (NMTC) Eligibility Status for 2019 using 2011–2015 eligibility data. United States Department of the Treasury, CDFI Fund)

Fiscal Year 1978 — Fiscal Year 2020 Cumulative HTC Impacts

$181.0 billion in cumulative rehabilitation investment

An inflation-adjusted (2020 dollars) $34.3 billion HTC cost encouraged a five times greater amount of historic rehabilitation, $181.0 billion

2.9 million New jobs created and billions of dollars in total (direct and secondary) economic gains

CUMULATIVE POSITIVE IMPACTS

on the national economy:

$391.5 billion in output, $195.2 billion in GDP, $143.6 billion in income, and $55.6 billion in taxes, including $39.4 billion in Federal tax receipts.

These leverage and multiplier effects support the economic argument that the Federal HTC is a strategic investment that works.

4 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY

Projects by Community Size (Population)*

Exhibit 1

Summary of Federal Historic Tax Credit Statistics

Dollar amounts are expressed in billions

FY 1978–2020

Investment/Tax Credit Component a Nominal $ d Real $ e

Total Annual Average Total Annual Average

Approved proposed (for tax credit) rehabilitation (Part 2)

$133.0 $3.09 $215.0 $5.00

Certified (for tax credit) rehabilitation (Part 3)

$98.6 $2.29 $162.9 $3.79

Total rehabilitation cost b $109.5 $2.55 $180.9 $4.21

Federal tax credit c $20.2 $0.47 $34.3 $0.80

Dollar amounts are expressed in billions

Economic Impacts (See Exhibit 3.1 for details)

FY 1978–2020

Total Annual Average

Jobs (in thousands) 2,908 68

Income $143.6 $3.34

Gross Domestic Product $195.2 $4.54

Output $391.5 $9.10

Taxes-All Government $55.6 $1.29

Taxes-Federal Government $39.4 $0.92

Taxes-State Government $8.0 $0.19

Taxes-Local Government $8.2 $0.19

Technical Background: The HTC has a multi-step application process encompassing Part 1 (evaluation of the historic significance of the property), Part 2 (description of the rehabilitation work), and Part 3 (request for certification of completed work). With respect to the HTC’s dollar magnitude, the most complete data is for the approved proposed (for tax credit) rehabilitation investment (Part 2). We do not have as good data on the year-by-year certified (for tax credit) rehabilitation (Part 3) volume over the full FY 1978–2020 period. (Only a portion of the Part 2 rehabilitation is ultimately certified as Part 3.) Further, we do not have specific data on the total rehabilitation investment associated with the HTC. By way of background, both Part 2 and Part 3 rehabilitation statistics include only what are termed “eligible” or “qualified” items (or Qualified Rehabilitation

Expenditures—QRE) for the tax credit as opposed to what are called “ineligible” or “non-qualified” costs. Examples of eligible/qualified costs include outlays for renovation (walls, floors, and ceilings, etc.), construction-period interest and taxes, and architect fees; examples of ineligible/ non-qualified costs include landscaping, financing and leasing fees, and various other outlays (for fencing, paving, sidewalks and parking lots).

While the ineligible/non-qualified expenses do not count for tax credit purposes, they are a component of the total rehabilitation investment borne by the HTC developer and in fact, the total rehabilitation investment (including ineligible/non-qualified costs) help pump prime the economy.

Based on the best published data and through additional case studies conducted specifically for the purposes of the current investigation, Rutgers

University estimates some of the “missing information” noted above regarding the cumulative HTC investment over FY 1978–2020.

a Data estimated from best available information.

b Equals all rehabilitation outlays—both eligible/qualified expenses and ineligible/non-qualified costs. The total rehabilitation cost is estimated by dividing the Part 3 investment by 0.9. Case study investigation suggests that the Part 3 amount is closer to 85% of the total rehabilitation cost.

However, we elected to apply the 0.9 factor to be conservative, that is, to derive a lower rather than a higher estimate of the total rehabilitation expense.

c Assumes a 25% HTC in FY 1978–FY 1986 and a 20% HTC in FY 1987–FY 2020. These percents are applied to the certified rehabilitation (Part 3 ) qualified rehabilitation expenditures.

d In indicated year dollars—not adjusted for inflation.

e In inflation-adjusted 2020 dollars.

SOURCES: Technical Preservation Services, National Park Service. Calculations by Rutgers University.

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2020 5

Exhibit 2.1 Fiscal Year 2020 National Economic and Tax Impacts of Federal HTC-Related Investment by State

State

Total Rehabilitation Costs (in 2020 $ millions)

National Economic Impacts Tax Impacts

(in 2020 $ millions) Employment (jobs)

(in 2020 $ millions)

Income GDP Output Local State Federal Total

Alabama $21.50 397 $13.60 $25.60 $35.30 $0.40 $0.60 $3.30 $4.20

Alaska 0.00 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Arizona 14.10 243 8.30 10.70 27.10 13.30 8.60 2.40 24.30

Arkansas 98.20 2,034 68.30 102.00 181.50 1.90 3.60 16.40 21.90

California 43.30 645 31.40 41.00 84.70 1.10 1.70 7.90 10.80

Colorado 45.00 2,886 31.70 44.00 84.70 1.10 1.50 7.50 10.10

Connecticut 98.10 1,404 68.30 94.90 179.40 5.20 4.40 15.70 25.30

Delaware 13.30 210 9.40 12.80 24.80 0.60 0.60 2.10 3.30

District of Columbia 73.20 1,064 49.40 66.80 128.90 4.90 2.00 10.00 16.90

Florida 3.20 56 2.30 3.10 6.00 0.20 0.10 0.50 0.80

Georgia 128.20 2,532 89.00 130.90 234.70 6.00 5.90 21.70 33.60

Hawaii 0.00 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Idaho 11.40 217 7.70 11.10 20.50 0.30 0.30 1.70 2.20

Illinois 1,204.70 17,760 877.00 1,131.80 2,352.70 38.20 34.70 211.00 283.80

Indiana 68.60 1,202 49.00 66.00 130.90 22.60 15.10 11.70 49.30

Iowa 131.10 2,368 88.80 132.50 230.60 4.40 3.90 20.60 28.90

Kansas 63.00 1,145 44.10 61.00 116.80 14.90 10.30 10.10 35.40

Kentucky 60.30 1,155 41.80 59.00 110.50 6.00 4.80 9.60 20.50

Louisiana 182.50 3,225 130.10 170.40 345.80 6.40 6.60 29.90 42.90

Maine 24.50 371 14.40 21.60 46.90 1.10 1.00 3.90 6.00

Maryland 223.90 3,458 157.20 211.40 415.40 7.30 6.60 35.80 49.70

Massachusetts 295.90 3,846 207.70 278.60 551.10 7.90 9.50 47.80 65.20

Michigan 164.80 2,619 116.80 156.40 310.90 4.90 5.90 27.20 38.10

Minnesota 58.70 924 41.20 55.50 109.60 2.10 2.30 9.50 13.90

Mississippi 43.20 900 30.10 42.70 79.60 3.30 2.60 7.00 12.90

Missouri 573.20 9,821 408.80 541.60 1,089.90 15.80 18.10 94.90 128.90

Montana 10.70 207 7.40 10.50 19.60 0.40 0.40 1.70 2.40

Nebraska 7.20 138 4.90 7.10 12.90 1.50 1.00 1.10 3.60

Nevada 0.00 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00

New Hampshire 19.20 295 13.40 18.60 35.60 0.80 0.30 3.10 4.10

New Jersey 61.00 875 43.30 56.90 115.80 1.20 1.80 10.00 13.00

New Mexico 0.00 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00

New York 1,005.70 16,638 716.60 957.10 1,892.50 65.20 55.20 172.90 293.30

North Carolina 197.80 3,706 139.30 198.20 370.60 4.80 6.90 33.80 45.50

North Dakota 8.10 143 5.70 7.50 15.00 0.30 0.20 1.20 1.70

Ohio 436.50 7,842 310.80 430.10 829.00 19.00 16.00 75.70 110.60

Oklahoma 76.90 1,516 54.80 76.80 146.80 1.90 2.70 13.20 17.70

Oregon 24.20 429 17.60 23.10 47.20 0.60 0.80 4.20 5.70

Pennsylvania 321.10 5,219 233.10 309.00 626.10 10.70 9.10 56.50 76.30

Rhode Island 156.50 2,387 106.70 160.20 281.40 35.10 5.70 4.90 13.20

South Carolina 26.40 493 18.30 26.70 48.20 0.80 0.80 4.40 6.00

South Dakota 11.00 221 7.80 10.10 20.50 0.40 0.20 1.70 2.20

Tennessee 17.60 311 12.30 17.10 32.80 0.50 0.40 2.90 3.70

Texas 449.70 7,264 325.80 426.00 880.70 15.50 8.90 80.30 104.70

Utah 30.90 573 21.70 30.40 57.40 0.80 1.00 5.10 6.90

Vermont 8.70 154 6.30 8.20 16.60 0.30 0.40 1.40 2.20

Virginia 293.50 4,940 210.00 283.90 559.20 7.60 9.90 50.30 67.70

Washington 210.40 3,373 150.90 204.50 404.40 9.70 7.60 36.30 53.70

West Virginia 2.30 44 1.60 2.30 4.20 0.10 0.10 0.40 0.50

Wisconsin 244.50 4,255 173.20 238.10 459.30 8.60 9.80 41.20 59.70

Wyoming 0.00 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Totals $7,263.8 121,505 $5,167.7 $6,973.8 $13,774.1 $355.4 $290 $1,210.5 $1,823.4

SOURCE: Technical Preservation Services, National Park Service. Calculations by Rutgers University.

6 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY

Exhibit 2.2 Cumulative Fiscal Years 2016–2020 National Economic and Tax Impacts of Federal HTC-Related Investment by State

State

Total Rehabilitation Costs (in 2020 $ millions)

National Economic Impacts Tax Impacts

(in 2020 $ millions) Employment (jobs)

(in 2020 $ millions)

Income GDP Output Local State Federal Total

Alabama $261.4 4,544 $165.7 $311.7 $429.1 $4.6 $7.0 $39.9 $51.4

Alaska 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Arizona 132.7 2,145 78.5 101.1 255.4 125.6 81.1 22.3 228.8

Arkansas 294.6 5,862 204.9 305.9 544.4 5.8 10.7 49.3 65.8

California 621.3 8,859 450.3 588.2 1,215.3 15.7 25.1 114.1 154.9

Colorado 104.4 6,518 73.5 102.1 196.5 2.6 3.4 17.4 23.5

Connecticut 540.2 7,258 376.1 522.7 988.1 28.4 24.2 86.6 139.2

Delaware 68.7 1,029 48.6 66.1 128.1 3.1 3.2 10.8 17.2

District of Columbia 584.5 8,078 394.2 533.1 1,029.0 39.3 15.9 79.9 134.9

Florida 86.3 1,425 61.0 82.6 161.7 4.5 2.8 14.5 21.7

Georgia 534.2 10,148 370.7 545.1 977.5 25.1 24.5 90.4 139.9

Hawaii 8.0 106 5.4 7.6 13.9 39.2 46.3 169.9 255.3

Idaho 26.1 479 17.6 25.3 46.8 0.6 0.6 3.9 5.1

Illinois 2,328.4 33,181 1,694.9 2,187.5 4,547.2 73.8 67.1 407.8 548.7

Indiana 309.6 5,196 221.1 297.5 590.4 101.9 67.9 52.6 222.4

Iowa 884.6 15,155 599.1 894.2 1,556.2 29.6 26.3 138.9 194.8

Kansas 316.7 5,467 221.7 306.9 587.4 74.9 52.0 50.9 177.9

Kentucky 440.0 7,972 304.6 430.4 805.9 44.0 35.0 70.1 149.2

Louisiana 1,640.6 27,457 1,169.4 1,531.9 3,107.8 57.3 59.6 269.1 385.9

Maine 217.4 3,102 127.9 192.1 416.8 9.9 9.2 34.4 53.5

Maryland 769.3 11,301 540.2 726.5 1,427.5 25.0 22.7 123.1 170.7

Massachusetts 1,783.6 21,986 1,251.7 1,679.2 3,321.4 47.6 57.4 287.9 392.9

Michigan 1,140.2 17,354 808.0 1,082.2 2,151.0 33.8 41.0 188.4 263.2

Minnesota 967.7 14,282 679.5 915.4 1,807.2 34.0 38.5 156.0 228.5

Mississippi 121.9 2,438 84.9 120.3 224.5 9.2 7.3 19.8 36.4

Missouri 2,143.3 39,435 1,724.0 2,283.9 4,596.1 66.7 76.3 400.3 543.4

Montana 27.1 495 18.8 26.6 49.6 1.0 0.9 4.3 6.1

Nebraska 178.3 3,198 121.8 176.2 318.8 36.8 25.1 27.5 89.5

Nevada 1.4 19 1.0 1.3 2.6 0.0 0.0 0.2 0.3

New Hampshire 91.4 1,384 63.6 88.5 169.2 3.5 1.3 14.6 19.4

New Jersey 708.9 9,494 503.0 662.0 1,346.8 13.9 21.0 115.9 150.9

New Mexico 6.1 112 4.4 6.0 11.6 0.3 0.3 1.0 1.5

New York 4,716.5 74,220 3,360.7 4,488.6 8,875.5 305.7 259.0 810.8 1,375.4

North Carolina 1,327.1 23,667 934.8 1,329.4 2,486.1 32.0 46.3 227.0 305.5

North Dakota 21.2 363 14.9 19.6 39.2 0.7 0.5 3.1 4.4

Ohio 2,783.4 47,753 1,982.0 2,742.5 5,285.8 120.9 101.8 482.7 705.4

Oklahoma 411.4 7,694 293.1 411.1 785.8 9.9 14.3 70.6 94.7

Oregon 245.9 4,223 178.6 234.1 478.7 6.4 8.6 42.8 58.0

Pennsylvania 2,079.6 32,453 1,509.6 2,001.2 4,055.0 69.3 58.8 366.0 494.2

Rhode Island 608.0 8,853 414.7 622.5 1,093.5 51.4 19.9 75.5 114.4

South Carolina 297.4 8,330 324.5 474.3 854.8 13.5 15.0 77.8 106.2

South Dakota 21.4 377 13.6 17.6 35.8 0.6 0.3 2.9 3.9

Tennessee 486.6 8,189 341.3 472.0 906.9 13.8 10.5 79.3 103.5

Texas 1,775.7 27,560 1,286.3 1,682.2 3,477.9 61.3 35.1 317.0 413.4

Utah 54.4 980 38.2 53.5 101.2 1.4 1.7 9.0 12.2

Vermont 61.9 1,040 44.6 58.6 118.4 1.7 3.0 10.1 15.5

Virginia 1,751.5 28,103 1,253.4 1,694.0 3,337.2 45.4 58.9 299.9 404.1

Washington 548.2 8,474 393.1 532.7 1,053.3 25.4 19.9 94.6 139.8

West Virginia 73.5 1,343 50.9 73.8 134.2 2.2 2.5 11.8 16.7

Wisconsin 936.4 15,705 663.5 912.1 1,759.2 33.0 37.6 157.9 228.7

Wyoming 3.3 67 2.6 3.8 6.7 0.2 0.1 0.7 1.1

Totals $35,542.3 574,876 $25,486.3 $34,623.7 $67,909 $1,752.2 $1,547.6 $6,201.3 $9,470.1

SOURCE: Technical Preservation Services, National Park Service. Calculations by Rutgers University.

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2020 7

Exhibit 3.1

National Economic and Tax Impacts of Federal HTC-Related Activity FY 1978 through FY 2020 (HTC Investment: $181.0 billion)

Gross Domestic Product by Sector from Federal Historic Preservation Investment $195,199 million cumulative, FY 1978-2020

Agriculture 607

Agri. Serv., Forestry, & Fish 1,110

Mining 3,043

Construction 57,879

Manufacturing 51,547

Transport. & Public Utilities 10,919

Wholesale 6,862

Retail Trade 13,831

Finance, Ins., & Real Estate 22,491

Services 25,904

Government 906

Income Created by Sector from Federal Historic Preservation Investment. $143,640 million cumulative, FY 1978–2020

Agriculture 258

Agri. Serv., Forestry, & Fish 679

Mining 1,738

Construction 47,598

Manufacturing 32,907

Transport. & Public Utilities 6,351

Wholesale 6,540

Retail Trade 8,762

Finance, Ins., & Real Estate 12,884

Services 25,346

Government 577

Jobs Created by Sector from Federal Historic Preservation Investment. 2,907,438 jobs cumulative, FY 1978–2020

Agriculture 8,878

Agri. Serv., Forestry, & Fish 15,480

Mining 24,035

Construction 892,332

Manufacturing 612,121

Transport. & Public Utilities 112,574

Wholesale 100,046

Retail Trade 411,240

Finance, Ins., & Real Estate 192,062

Services 526,591

Government 12,078 millions of 2020 $

20,00010,000 60,00030,000 40,000 50,0000

1,110

3,043

57,879

51,547

10,919

6,862

13,831

22,491

25,904

Agriculture

Agri. Serv., Forestry, & Fish

Mining

Construction

Manufacturing

Transport. & Public Utilities

Wholesale

Retail Trade

Finance, Ins., & Real Estate

Services

Government

Gross Domestic Product by Sector from Federal Historic Preservation Investment $195,199 million cumulative, FY 1978–2020 millions of 2020 $

10,000 50,00020,000 30,000 40,0000

1,738

47,598

32,907

6,351

6,540

8,762

12,884

25,346

Income Created by Sector from Federal Historic Preservation Investment $143,640 million cumulative, FY 1978–2020

Agriculture

Agri. Serv., Forestry, & Fish

Mining

Construction

Manufacturing

Transport. & Public Utilities

Wholesale

Retail Trade

Finance, Ins., & Real Estate

Services

Government jobs

400,000200,000 1,000,000600,000 800,0000

8,878

15,480

24,035

892,332

612,121

112,574

100,046

411,240

192,062

526,591

12,078

Jobs Created by Sector from Federal Historic Preservation Investment 2,907,438 jobs cumulative, FY 1978–2020

Agriculture

Agri. Serv., Forestry, & Fish

Mining

Construction

Manufacturing

Transport. & Public Utilities

Wholesale

Retail Trade

Finance, Ins., & Real Estate

Services

Government

8 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY

Exhibit 3.2

National Economic and Tax Impacts of Federal HTC-Related Activity FY 2020 (HTC Investment: $7.3 billion)

Gross Domestic Product by Sector from Federal Historic Preservation Investment. $6,973 million, FY 2020

Agriculture 21

Agri. Serv., Forestry, & Fish 39

Mining 100

Construction 2,276

Manufacturing 1,950

Transport. & Public Utilities 362

Wholesale 243

Retail Trade 435

Finance, Ins., & Real Estate 568

Services 951

Government 29

Income Created by Sector from Federal Historic Preservation Investment $5,168 million, FY 2020

Agriculture 7

Agri. Serv., Forestry, & Fish 22

Mining 57

Construction 1,898

Manufacturing 1,205

Transport. & Public Utilities 199

Wholesale 232

Retail Trade 278

Finance, Ins., & Real Estate 324

Services 928

Government 18

Jobs Created by Sector from Federal Historic Preservation Investment. 121,505 jobs, FY 2020

Agriculture 320

Agri. Serv., Forestry, & Fish 590

Mining 1,111

Construction 42,084

Manufacturing 27,094

Transport. & Public Utilities 4,713

Wholesale 4,022

Retail Trade 14,426

Finance, Ins., & Real Estate 4,895

Services 21,820

Government 408 millions of 2020 $

500 2,5001,000 1,500 2,0000

2,276

1,950

Gross Domestic Product by Sector from Federal Historic Preservation Investment $6,973 million, FY 2020

Agriculture

Agri. Serv., Forestry, & Fish

Mining

Construction

Manufacturing

Transport. & Public Utilities

Wholesale

Retail Trade

Finance, Ins., & Real Estate

Services

Government millions of 2020 $

400 2,000800 1200 1,6000

1,898

1,205

Income Created by Sector from Federal Historic Preservation Investment $5,168 million, FY 2020

Agriculture

Agri. Serv., Forestry, & Fish

Mining

Construction

Manufacturing

Transport. & Public Utilities

Wholesale

Retail Trade

Finance, Ins., & Real Estate

Services

Government jobs

45,00015,0005,000 25,000 35,0000

1,111

42,084

27,094

4,713

4,022

14,426

4,895

21,820

Jobs Created by Sector from Federal Historic Preservation Investment 121,505 jobs, FY 2020

Agriculture

Agri. Serv., Forestry, & Fish

Mining

Construction

Manufacturing

Transport. & Public Utilities

Wholesale

Retail Trade

Finance, Ins., & Real Estate

Services

Government

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2020 9

CASE STUDY #1

Forty-Four & Sixty-Six Service Station Boise, Idaho

History As post-war Americans hit the highways at the zenith of the nation’s infatuation with car culture, automotive service stations proliferated across the country. Corporate branding became increasingly important as American oil companies vied to attract the attention of the motoring public. In 1956, Clarence Reinhardt, the corporate architect for Phillips Petroleum, began to experiment with dramatic

V-shaped canopies at the company’s branded filling stations. By 1960, a harlequin paint scheme and

Reinhardt’s “bat wing” canopy were launched as the “New Look” of the Phillips architectural brand.

Boise’s only example of this design was constructed on State Highway 44 in 1964. This numerical highway identifier and the Phillips 66 brand of gasoline resulted in the gas station’s first recorded name, the Forty-Four & Sixty-Six Service Station. By 1975, the building no longer functioned as a gas station and instead began to house a variety of auto service and sales companies. Milan and Blazena Kral, defectors from Soviet Czechoslovakia, purchased the building in 1977 and for 20 years operated the

German Car Service auto repair shop.

Following Milan’s death in 2016, the building was bequeathed to his son and daughter-in-law, Thames and Stacy Kral, who were determined to preserve and rehabilitate this vestige of mid-century Boise.

PROJECT PROFILE

Historic Name: Forty-Four & Sixty-Six

Service Station

Current Name: Design Vim

Year Built: 1964

Rehabilitation Completed: 2020

Original Use: Gas and service station

New Use: Offices

Estimated Qualified Rehabilitation Expenditures: $157,004

Estimated Total Project Cost:

$166,364

10 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY

Boise, Idaho

Rehabilitation Instead of demolition and sale of the land to the highest bidder, the Krals sought a tenant who would appreciate the quirky characteristics of the space and sensitively adapt it to a new use. Design Vim, a women-veteran-owned interior design firm approached the Krals with an intent to renovate the gas station for their offices. The Krals insisted that the original elements of the building be respected and retained.

The Krals had the building listed in the National Register of Historic Places in 2019, the first of its style and property type to be listed in Idaho. They also submitted an application to the Idaho State Historic

Preservation Office and the National Park Service to qualify for the historic tax credits. The Krals worked with Design Vim to retain key spaces and fixtures in the former garage and in the office area where original cabinetry, flooring, and windows have been retained or replaced in kind. Design Vim’s current workspace reflects the historic uses of the interior, with a lobby in the customer service area and open-floor offices in the garage bays.

The Krals rehabilitation project was rewarded with a 2020 Orchid Award for Excellence in Historic

Preservation from Preservation Idaho.

Courtesy: Dan Everhart, Idaho State Historic Preservation Office

Forty-Four & Sixty-Six Service Station Photos: Dan Everhart

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2020 11

CASE STUDY #2

Niagara Machine and Tools Works Buffalo, New York

BEFORE

AFTER

12 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY

Buffalo, New York

BEFORE AFTER

Photos: Joseph M. Cascio

History The Niagara Machine and Tool Works is an intact example of a large-scale tool and machine factory designed and built during the first half of the twentieth century. The company played an important role in defense contracting for World War I and World War II, as well as in the development of the East Side of Buffalo along the Belt Line railroad. Noted Buffalo architectural firm Green & Wicks designed the original buildings, with additions from local civil engineers. The complex includes an exposed reinforced-concrete-framed four-story office building and manufacturing spaces constructed of concrete, brick, and steel with steel-framed sawtooth and monitor skylights. Most of the company’s manufacturing activities ceased at the site by 1999. A City of Buffalo development agency purchased the property from a private owner in 2015.

Rehabilitation Although the buildings had been deteriorating for decades, they were mostly intact. The skylights and sawtooth monitors were reglazed, and new aluminum windows designed to match the original steel windows were installed throughout the complex. New partitions in the interior included windows along the walls between laboratory spaces to provide a visual continuation reminiscent of the former factory floor. To comply with current energy codes, interior insulation was added to some uninsulated exterior masonry walls, and existing walls were exposed where possible. The factory building was structurally sound but required some retrofits to meet current snow load requirements. An original entrance along the front elevation was restored as the main lobby public entrance.

In addition to the Federal Historic Tax Credit, several other incentives were critical to the project’s financing, including the New York State Historic Tax Credit, the Federal New Markets Tax Credit, the

Brownfield Tax Credit, and New York Power Authority grants. The project also received funding from

Governor Andrew Cuomo’s “Buffalo Billion” investment in the city of Buffalo.

The former manufacturing complex is now a training center focused on the Western New York workforce and specializing in training for the advanced manufacturing and energy sectors. It is supported by a public/private partnership of employers, educational institutions, community and faith-based organizations, and state and local governments.

The Northland Workforce Training Center represents a revival in an industrial neighborhood that was once considered forgotten by its residents. Its reuse as an energy and manufacturing educational center maintains the industrial significance and aesthetics of the complex. The rehabilitation was the first step in the revitalization and reuse of one of Buffalo’s great historic factory districts, and it served as a catalyst for the rehabilitation of two other factory buildings and planning for infill housing in the area.

Courtesy: Barbara A. Campagna/Architecture + Planning

PROJECT PROFILE

Historic Name: Niagara Machine and Tool Works

Current Name: Northland Workforce

Training Center

Year Built: 1910–1967

Rehabilitation Completed: 2020

Original Use: Company headquarters and manufacturing

New Use: Workforce training center and related light industrial space

Estimated Qualified Rehabilitation Expenditures: $92,958,078

Estimated Total Project Cost:

$111,702,975

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2020 13

CASE STUDY #2—Continued

Niagara Machine and Tools Works Buffalo, New York

BEFORE AFTER

Niagara Machine and Tool Works, photos: Joseph M. Cascio

14 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY

Buffalo, New York

AFTER

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2020 15

CASE STUDY #3

West Pullman Elementary School Chicago, Illinois

History The West Pullman Elementary School is a former public school located on Chicago’s

Far South Side. Designed by Chicago Board of Education architects, the school was constructed in three stages between 1894 and 1923. The Romanesque Revival- and

Classical Revival-style building maintained its original use as a school until 2013, when it was closed along with dozens of other Chicago schools to address the school district’s mounting budget problems. The building sat vacant until 2017 when a developer proposed to rehabilitate it into affordable senior housing, which was much needed in the neighborhood. The rehabilitation process began with listing the school in the National Register of Historic Places and submitting applications for the Federal and State historic tax credits.

Rehabilitation The rehabilitation maintained the building’s exterior appearance while improving the envelope, accessibility, and landscaping. The interior changes retained the building’s primary spaces including the 1923 auditorium and gymnasium, which now offer opportunities for resident wellness and for events that draw the wider community back to the historic building. All four historic stairs and the wide corridors were also preserved. While the classrooms were subdivided for apartments, the development team was able to preserve the historic trim, built-in cabinets, and chalkboards.

The successful rehabilitation not only met the Secretary of the Interior’s

Standards for Rehabilitation but filled an important community need.

Landmark Illinois recognized the rehabilitation of the West Pullman

Elementary School with a 2021 Richard H. Driehaus Foundation

Preservation Award for Adaptive Reuse.

Courtesy: Darius Bryjka, Illinois State

Historic Preservation Office

PROJECT PROFILE

Historic Name: West Pullman

Elementary School

Current Name: West Pullman School

Senior Community

Year Built: 1894–1923

Rehabilitation Completed: 2020

Original Use: Public elementary school

New Use: Senior apartments

Estimated Qualified Rehabilitation Expenditures: $17,760,120

Estimated Total Project Cost:

$21,171,765

West Pullman School exterior after rehabilitation

Photo: Lee Bey

16 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY

Chicago, Illinois

A resident of the new West Pullman School Senior Community sits in the entrance to the former school. Photo: Lee Bey

“It is well established that reusing an existing structure, particularly ones as solidly constructed as the West Pullman

School, is the most sustainable response to new development. The embodied energy contained within these buildings remains, and landfills that might have been filled with the building’s debris remain unused.”

Project developer Scott Henry, Celadon Holdings, receiving a 2021 Landmarks Illinois Preservation Award

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2020 17

This report is based on the findings of a National Park Service-funded study undertaken through a cooperative agreement with Rutgers University’s Center for Urban Policy

Research. Rutgers University is responsible for the content of the study. Some additional demographic analysis was provided courtesy of PolicyMap.

Front and Back Cover Images:

Forty-Four & Sixty-Six Service

Station, Boise, Idaho

Photos: Dan Everhart

Edward J. Bloustein School of Planning and Public Policy

Rutgers, The State University of New Jersey

Civic Square Building, 33 Livingston Avenue

New Brunswick, NJ 08901

848-932-5475 https://bloustein.rutgers.edu/ ejb@ejb.rutgers.edu

Technical Preservation Services

National Park Service

U. S. Department of the Interior

1849 C Street NW

Washington, DC 20240 https://www.nps.gov/tps/

November 2021

18 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY

https://bloustein.rutgers.edu/ https://bloustein.rutgers.edu/ mailto:ejb%40ejb.rutgers.edu?subject= https://www.nps.gov/tps/ https://www.nps.gov/tps/