ADVOCACY GUIDE & BRIEFING PACKET PRESENTED BY: Preservation Action National Conference of 202-463-0970 State Historic Preservation Officers [email protected] 202-624-5465 Welcome to HISTORIC PRESERVATION ADVOCACY WEEK 2021 This Briefing Packet provides information on the key issues preservation advocates will be talking to their Members of Congress. This year’s issues focus on the Historic Preservation Fund, the Historic Tax Credit, and the Historic Preservation Caucus. While all of them are important, we encourage you to carefully consider which issues are most appropriate to bring before your legislators. For Each Issue You Will Find: Additional Resources: • Whom to Talk To • Where to Go for More Information • Lists of Relevant Committee Members • Talking Points • What to Ask For • References to Relevant One-Pagers While Historic Preservation Advocacy Week will look a little different from previous years with the new virtual format, this is a critical year for advocacy. We have a new administration and the 117th Congress is just getting underway, including 70 new members of House and Senate. Education is critical. Democrats now control the Presidency, and the House and Senate, but with slim majorities. The good news for preservationists is that our message is one that enjoys strong bi-partisan support: protect and preserve our American heritage, while generating economic development, leveraging private investment, and creating jobs. Despite challenging budgets, members of Congress on both sides of the aisle have demonstrated strong support for the Historic Preservation Fund. For the last four years, we have successfully advocated for significant increases to the HPF, including a record level $144.3 million for Fiscal Year 2021. While these recent successes are cause for celebration, more work needs to be done. The need for funds has surged as SHPO duties have increased, new THPO offices established, and competitive grant programs created and expanded. We are asking advocates to thank members for their support of the HPF, while reminding legislators that more is needed to make up for years of chronic underfunding and to carry out the important work the HPF makes possible: recognizing, saving, and protecting America’s shared heritage. The Federal Historic Tax Credit (HTC) is a 20% credit applied to qualified rehabilitation costs for certified historic structures, distributed over 5 years (4% per year). The HTC represents the largest federal investment in historic preservation, with a proven track record of rehabilitating historic structures, encouraging private investment and creating jobs, while returning more to the Treasury than the cost of the program. The historic rehabilitation community, like so many others, has been significantly impacted by the COVID-19 pandemic and resulting economic decline. We are urging members of Congress to temporarily increase the HTC from 20% to 30% to address pandemic-related challenges. We are also asking for much needed improvements and enhancements to the credit, including increasing the credit from 20% to 30% for projects less than $2.5 million and lowering the substantial rehabilitation threshold to make more projects eligible. We encourage you to talk with your colleagues, ask questions, and exchange ideas. There are many different perspectives to advocacy, and we become more effective when we become aware of the various positions articulated on an issue. After your Hill visits, please fill out a “Hill Report Form” for each visit and return it to Preservation Action. Hill Report forms can be completed online at https://forms.gle/CY4hMYwXgVqqp2tv9. HISTORIC PRESERVATION FUND WHO TO TALK TO: HOUSE APPROPRIATIONS Subcommittee on Interior, Your Senators and Representative and members of the Appropriations Environment and Related Agencies Committees, especially the House and Senate Interior Appropriations Subcommittees. Chellie Pingree (D-ME) Chair, Betty McCollum (D-MN) WHAT TO REQUEST: Derek Kilmer (D-WA) Josh Harder (D-CA) Appropriators: Thank appropriators for their support of the Historic Preservation Susie Lee (D-NV) Fund, while reminding them that more is needed to make up for years of chronic Marcy Kaptur (D-OH) underfunding and carry out the essential functions of the HPF. Matt Cartwright (D-PA) FY22 Request: $60 million for State Historic Preservation Officers, $24 million for Ranking, David Joyce (R-OH) Tribal Historic Preservation Officers, $19 million for the African American Civil Mike Simpson (R-ID) Rights Initiative Competitive Grants, $7 million for the History of Equal Rights Chris Stewart (R-UT) Grants, $10 million for Historically Black Colleges and Universities, $20 million for Mark Amodei (R-NV) Save America’s Treasures, $9 million for the Paul Bruhn Historic Revitalization Grants, and $1 million for underrepresented communities. Non-Appropriators: If your member is not on the Appropriations Committee, ask SENATE APPROPRIATIONS them to voice support for the HPF request listed above to the Chairman and Subcommittee on Interior, Ranking Member of the Interior appropriations subcommittee. (see side bar). Environment, and Related Agencies Ask all House offices to sign onto the Dear Colleague HPF appropriations letter. The House letter is being circulated by Representatives Blumenauer (D- Chair, Jeff Merkley (D-OR) OR) and Turner (R-OH). Dianne Feinstein (D-CA) Patrick Leahy (D-VT) TALKING POINTS: Jack Reed (D-RI) 1. With America’s history disappearing all around us, it is vital to invest in the Jon Tester (D-MT) HPF so state and local entities will have the resources and tools they need to Chris Van Hollen (D-MD) save America’s historic places. Martin Heinrich (D-NM) 2. In addition to facilitating the preservation of our historic places, since 1976, the Ranking, Lisa Murkowski (R-AK) HPF has facilitated more than 95,000 listings on the National Register, the survey Roy Blunt (R-MO) of millions of acres for cultural resources, and $162 billion in private investment Mitch McConnell (R-KY) through the Historic Tax Credit. Bill Hagerty (R-TN) 3. Identify projects and programs of interest to your member that will languish Shelly Moore Capito (R-WV) without proper funding. Also, reference the Certified Local Government (CLG) Cindy Hyde-Smith (R-MS) program which assists local communities and preservation commissions with Marco Rubio (R-FL) training and survey grants funded in part by the HPF. 4. The HPF is not used for land acquisition but instead provides state and local entities with the resources they need to enable both public and private SUGGESTION: preservation efforts. Identify an HPF supported activity or 5. HPF does not use tax-payer dollars. Mention that the source of funding for project (i.e. preservation training, SHPOs and THPOs, and grant programs is not tax revenue but rather from the grant, tax credit project) in your district Historic Preservation Fund (HPF), funded by Outer Continental Shelf Oil Lease that has had a positive economic revenues. Every year $150 million in lease revenue is deposited into the HPF. impact on your community. Ask that these revenues be used for their intended purpose and not sacrificed as a budget-balancing tool. 6. Increases in SHPO apportionments have not kept pace with the overall increase in the HPF. In FY 2016, SHPO apportionments accounted for 72% of the total HPF. In FY 2021, SHPO apportionments account for 39% of the HPF. 7. Funding for THPOs has not kept pace with the number of new THPOs added each year, therefore the average award is reduced each year. FEDERAL TAX INCENTIVES FOR HISTORIC PRESERVATION WHO TO TALK TO: HOUSE WAYS AND MEANS Chair, Richard Neal (D-MA) Mike Thompson (D-CA)* Your member of Congress but importantly members of the House Ways and Lloyd Doggett (D-TX)* Means Committee and its Subcommittee on Select Revenue Measures, and the John B. Larson (D-CT)* Senate Finance Committee. Earl Blumenauer (D-OR) Ron Kind (D-WI) Bill Pascrell Jr. (D-NJ) WHAT TO REQUEST: Danny Davis (D-IL) Linda Sanchez (D-CA)* Brian Higgins (D-NY) Continue to educate legislators about the amazing economic development and Terri Sewell (D-AL)* community revitalization power of the Historic Tax Credit. Encourage members to Suzan DelBene (D-WA)* support efforts to strengthen and increase the HTC. Judy Chu (D-CA) Gwen Moore (D-WI)* Dan Kildee (D-MI) TALKING POINTS: Brendan Boyle (D-PA)* Don Beyer (D-VA)* 1. The credit generates new economic activity. Since inception, the HTC has Dwight Evans (D-PA) Brad Schneider (D-IL) rehabilitated more than 45,000 buildings, created nearly $3 million jobs, attracted Tom Suozzi (D-NY)* approximately $173 billion in private investment nationwide and has produced Jimmy Panetta (D-CA) Stephanie Murphy (D-FL) over 172,000 low- and moderate-income affordable housing units. Jimmy Gomez (D-CA) Steven Horsford (D-NV) 2. A 2019 study concluded that the HTC returns more to the Treasury than it Stacey Plaskett (D-VI)* costs. The HTC has generated $38.1 billion in federal tax revenue from the $32.9 Ranking Member, Kevin Brady (R-TX) Devin Nunes (R-CA) billion in federal tax credits. Vern Buchanan (R-FL) Adrian M. Smith (R-NE)* 3. From 2013 to 2017, 40% of all HTC projects were in predominantly minority Tom Reed (R-NY) Mike Kelly (R-PA) census tracts and 74% of HTC projects were in economically distressed areas. Jason Smith (R-MO) Tom Rice (R-SC)* 4. The credit is used in both larger urban areas and smaller towns. In 2019, 34% David Schweikert (R-AZ)* Jackie Walorski (R-IN) of projects were in communities with populations under 100,000. Darin LaHood (R-IL)* Brad Wenstrup (R-OH) 5. Thirty-nine states recognize the economic development potential of historic Jodey Arrington (R-TX)* Drew Ferguson (R-GA)* rehabilitation and have enacted individual state HTC programs that work in Ron Estes (R-KS)* tandem with the federal program. Lloyd Smucker (R-PA) Kevin Hern (R-OK)* Carol Miller (R-WV) Encourage your members to support efforts to strengthen and increase the Historic Tax Credit SENATE FINANCE COMMITTEE Chair, Ron Wyden (D-OR) Debbie Stabenow (D-MI)* • Temporarily increase for the HTC from 20% to 30% to address pandemic Maria Cantwell (D-WA) related challenges.