A Republican lawmaker proposed a new bill Monday that would increase state funding for buildings purchased by private developers who plan to preserve the historic nature of these structures.
Currently, the state provides a 5 percent tax credit, while the federal government provides a 20 percent credit, according to a statement by Rep. Chad Weininger, R-Green Bay. Weininger authored the bill.
Weininger said the bill would bridge this gap and raise the state tax credit from 5 to 20 percent to match the Federal Historic Preservation tax credit.
“We need to reinvigorate our local main streets, and what better way to do so than by rehabilitating our state’s historic buildings,” Weininger said.
Michael Stevens, the historic preservation and public history manager at the Wisconsin Historical Society, said legislators can achieve the cost-cutting motivation for this bill, if it is set up properly.
“Developers have to make sure the building retains its historic integrity,” Stevens said. “There is more risk and cost in doing it correctly.”
The legislation aims to benefit the community by stimulating economic growth, which will provide jobs, according to Stevens. He said these credits intend to promote developers to reuse historic buildings.
“It makes environmental and economic sense and respects the history of the community to retain its original look and feel,” Stevens said.
Stevens said a reinvestment projects can often provide benefits to a community. After an old Janesville middle school “outlived its usefulness,” it was converted into apartments and a performing arts center that went on to benefit the community, he said.
Another reason for changing the bill is to allow Wisconsin to compete with projects in other Midwestern states, Stevens said. He said Missouri saw a five-fold increase in the investment of historical buildings when the state increased its funding for rehabilitation projects.
The new bill would make Wisconsin competitive with Minnesota and Missouri, or states with similar credits to ensure historic property investors are working under the same conditions, Stevens said.
Rep. Melissa Sargent, D-Madison, said she may co-sponsor the bill because it would encourage urban economic development without expanding into agricultural lands.
“The bill would improve the vitality of downtown and will help with business growth,” she said. “It will also preserve farmlands because we will be doing less building on the outgrowths.”
Sargent added the bill would aid in the city’s green initiative by encouraging people to walk and bike from homes to businesses within their communities because the buildings needing revitalization are often in the heart of the city.
Additionally, the bill includes a provision adding an appeal process for buildings that are not on the registry at the Wisconsin State Historical Society. If they are built before a certain time, they may be eligible to receive the money regardless, Sargent said.
The Wisconsin State Historical Society must approve all projects requesting funding and ensure they meet certain standards.
“It will help ensure that we reuse the historic buildings we have here which is environmentally sound, and it will encourage private investment in historic resources, create jobs and save our heritage,” Stevens said.
