Public Comments for 02/19/2024 Finance
SB298 - Conservation tillage and precision agricultural application equipment; tax credit for purchase.
SB483 - Tangible personal property tax; exemption for indoor agriculture equipment and machinery.
SB556 - Historic rehabilitation; maximum amount of tax credit.
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I represent the accredited Main Street America organization in Harrisonburg, Va. We work to revitalize the historic downtown district and approach our work as a community-based economic development organization. I am writing today to show our support for this bill but to ask that it not conform to the House version . HB960 put a cap of $75M on this program, which would harm the economic development potential for developers and property owners throughout Virginia working to reinvest in their communities. This cap will force our communities to compete with each other instead of allowing all ships to rise. The state historic tax credit is a highly effective economic development tool that has benefited so many communities in Virginia. In Harrisonburg, since our revitalization started 20 years ago, we have had 27 certified rehabilitation tax credit projects with a total investment of over $61 M. Our total private investment shows during the last 20 years that we have had $139.4M in private reinvestment in our 40-block historic downtown. That illustrates how just over half of our private investment was made possible by the historic tax credit. If there was a cap on the state historic tax credit program, we would not have had that much reinvestment in our built environment and our success story would likely be years behind where we are today. We have a single-digit vacancy rate, a waitlist for apartments in our gorgeous historic rehabs, and a vibrant retail and restaurant scene. Our success has a direct line to the tax credit incentive. In fact, we have two multi-million dollar tax credit projects pending approval with two more large-scale projects starting this year. The developers of the two new projects are relying on this tax credit - it is the reason why they bought those historic buildings and could make the numbers work. We have more to do in Harrisonburg and my peers around the Commonwealth have a lot of potential that they should be able to realize. Support for our Virginia historic tax credit is support for the financial well-being and economic strength for our communities. It makes reinvestment projects happen, makes our communities more attractive to business activity, and increases the appeal for tourism. A cap will hurt this activity and the effectiveness of this tool. The pro rata amendment in HB960 also limits the viability of this tool. It would make the incentive variable and not unpredictable. Developers, investors and banks making loans do not like variable and unpredictable incentives. It will make projects risky because developers will not know if the credit will be available to them once the project is complete, which is when they finally can apply for the tax credit. And they will not know how much the credit will be worth because it will be pro rata once the cap is met. This means the amount of the credit will vary based on the number of applicants in that fiscal year. Since 2016, Virginia has exceeded $75M in tax credit projects five times. Please don't limit the economic development potential in Virginia's older and historic communities.
The City of Portsmouth strongly supports SB 556 as it passed the Senate without a cap being placed on the entire program. This bill will increase tax credit financing to Portsmouth revitalization projects. Please support this measure. Thank you.
SB297 - Agricultural best management practices; extends sunset date.