Congressman Brian Higgins (NY-27) announced he has introduced The New Markets Tax Credit Enhancement Act (H.R. 3224), a bill to extend the New Markets Tax Credit program through 2016.    The Congressman made the announcement as the national spotlight on Western New York’s historic, architectural and cultural treasures are being highlighted during the National Preservation Conference. 

“For older cities like Buffalo, there is great potential to take charge of our own future by reclaiming our past,” said Congressman Higgins.   “Across our community and the nation, New Markets Tax Credits are rebuilding great neighborhoods and business districts and creating jobs in the process.”

The New Markets Tax Credit program was created in 2000 to revitalize communities experiencing economic distress by providing tax credits to investors for equity investments to community development entities that invest in low-income communities.  Since its inception, the program has made tax credit allocations of $29.5 billion, which have leveraged nearly $50 billion in total investments.

In the City of Buffalo, $64 million of New Markets investments have been made since 2005, leveraging projects worth $141 million.  Projects that have received New Markets investment include: the Electric Tower, the Oak School Lofts, Ellicott Commons, the Webb Lofts, Asbury Hall, AM&A’s Warehouse Lofts, 567 Exchange Street, and the Innovation Center at the Buffalo Niagara Medical Campus. All of these projects involved either a restoration of an historic, vacant building, or new construction in an economically distressed area.

Opened in 1912, the Electric Tower was designed by local architects Esenwien & Johnson and modeled after the Tower of Light from the 1901 Pan American Exposition.  When Iskalo Development took ownership of the building in 2004, they began a comprehensive building renovation incorporating input from the State Historic Preservation Office and the National Parks Historic Landmarks Program.  The project was made possible with the help of $14.6 million in New Markets Tax Credits yielding a project equity contribution of $4.3 million, supporting 185 jobs during the construction phase and 400 on-site employees when fully occupied.  The building, which now serves as Class A office space, was completed in 2007 and named “Building of the Year” by the Greater Buffalo Building Owners and Managers Association and received the 2008 Brick By Brick award for “Best Historic Restoration.”

“New Market Tax Credits played an essential and critical role in financing the restoration of the Electric Tower,” Paul Bohdan Iskalo, Founder and CEO, Iskalo Development, said. “Congressman Higgins’ proposed extension provides an economic development opportunity for our community to continue to restore the many wonderful historic properties located in downtown Buffalo.”

“The National Trust for Historic Preservation applauds Congressman Higgins for introducing legislation to extend the New Markets Tax Credit program,” said Tom Cassidy, Vice President of Government Relations for the National Trust for Historic Preservation.  “The New Markets credits have often been twinned with the federal Historic Tax Credit in Western New York and nationwide to finance the rehabilitation of historic commercial properties.  These tax credits are job-creating investments that can revitalize the economies of low-income areas.  In these economic hard times, we can ill afford to cut programs like the NMTCs that have a proven track record of economic stimulus.”

In 2009, Congressman Higgins worked in cooperation with the National Development Council to host a New Markets Tax Credit training at the Larkin at Exchange building in Buffalo to help local real estate developers, government officials, and those from the financial community to learn more about the program. 

The New Markets Tax Credit Coalition estimates that for every $1 in federal investment, $12 in private investment is generated. 

In August, the U.S. Treasury Department reported that demand for New Markets Tax Credits continue to increase rapidly, with 26% more applications received in 2011 than last year.   The Program, which is set to expire this year, was also named one of the Top 25 Innovations in Government by the Harvard Kennedy School’s Ash Center.

Congressman Higgins serves as Co-Chair of the Congressional Revitalizing Older Cities Task Force and a member of the Northeast-Midwest Congressional Coalition.  He has been a vocal advocate on federal efforts to preserve, restore and invest in our national and community treasures including a recent effort to make Historic Tax Credits more user friendly.  Higgins’ Western New York district includes Chautauqua County and portions of Erie County.