Iowa lawmakers back historic rehab tax credit

DES MOINES (AP) ? A proposal to increase funding for tax credits that go to the restoration of historic buildings won final approval in the state legislature Wednesday.

The bill won unanimous Senate backing and will now move to Gov. Terry Branstad. The program, started in 2000, offers property owners or developers tax credits for 25 percent of qualifying rehabilitation costs in eligible historic buildings. Several types of properties are eligible, including those on the National Register of Historic Places and buildings in historic districts.

Currently the state approves up to $45 million in credits in a fiscal year. Under this legislation, that number would increase to $60 million annually for the next three years, before dropping to $50 million annually. Supporters of the legislation say it would help boost downtown development and residential housing in Iowa cities, like the new condos and shops in the East Village. section of Des Moines.

These tax credits have gone toward major restoration projects around the state. In Dubuque the credits aided the renovation of an historic downtown department store building and the revitalization of a former industrial site.

Branstad spokesman Tim Albrecht said in a statement that the governor would review the legislation before deciding whether to sign it into law.