The following is a reprint of a Letter to the Editor published in the April 28, 2009, Des Moines Register:

To the Editor:

As the Iowa Legislature winds up a controversial session, I want to commend it on increasing the allocation for historic rehabilitation tax credits.

The state's historic rehabilitation tax-credit program is a three-pronged approach to economic development. First, rehabilitation work is typically more labor-intensive than new construction. The higher direct-labor costs result in creation of skilled construction jobs. Second, historic tax credits encourage development of related professional services such as architects, engineers, project managers and accountants to work on qualifying projects. Creating and retaining these types of jobs must be a high priority for Iowa's long-term economic viability.

Third, the state's tax-credit investment is leveraged many times over. The tax credits cannot be claimed until the project is put into service. Accordingly, the owner's capital investment (wages paid and materials purchased) precedes the tax credit.

A full 10 percent of the credits are reserved for small projects under $500,000. Qualifying properties exist throughout the state, in rural and urban areas, small towns and large cities. Though high-profile and high-dollar projects get the most press, an individual homeowner can utilize historic tax credits to help pay for qualifying renovation work.

Sincerely,
Steve Wilke-Shapiro
Des Moines Rehabbers Club organizer