The following "White Paper" was produced by Preservation Iowa to promote passage of the Historic Homeowner Tax Credit bill in 2010:

The federal government has long had a robust tax credit program designed to encourage the restoration of historic commercial properties. Currently, those who own qualifying historic properties for investment purposes may qualify for a tax credit of up to 20% of their qualified rehabilitation costs. Those who own a historic home for use as their residence, however, do not
currently qualify for this tax credit. The Historic Homeowner Act of 2009 (Act) will remedy this inequity by expanding the federal historic rehabilitation tax credit program in two important ways.

First, the Act allows a homeowner whose primary residence qualifies as a historic structure to also take advantage of a 20% federal rehabilitation tax credit, up to a maximum credit of $60,000.1 Second, the Act makes improvements in the existing credit provision with respect to residential investor-owned properties, by:

1. Providing additional incentive for rehabilitation of historic homes in economically depressed and high cost areas by allowing a larger percentage of total rehabilitation costs (130% instead of 100%) to count toward the tax credit;

2. allowing unused tax credits for residential properties to be transferred to other parties; and
3. allowing the credit to apply to “for sale” rehabilitated residential properties.

The Act will thereby establish an incentive for thousands of owners of historic homes and other properties across the U. S. to restore these properties in a way appropriate to their history. This revitalization will help stem the tide of dilapidation of many historic communities across the U.S., and reinvigorate these communities with a sense of pride, history, and place. And during these difficult economic times, this Act will create much needed construction jobs, increase property values, rejuvenate run-down city-centers, increase profitable heritage tourism, and incite the expansion of small businesses that are fundamental to the stabilization and long-term growth of local economies. This Act also fulfills President Obama’s vision of moving toward a sustainable, renewable future. By restoring historic homes and areas that are already connected to the local existing infrastructure, rather than draining precious land and water resources for residential building projects at the margins of towns and cities, local governments will be better able to manage the finite resources of their individual communities.