Executive Summary
Ohio’s Historic Preservation Tax Credit (OHPTC) is one of the state’s most effective economic development tools. Demand for the program consistently exceeds available credits, demonstrating strong market response and verified return on investment. While recent program enhancements acknowledge this demand, the program’s fixed annual cap continues to introduce financing risk, particularly for rural and legacy-market projects. Aligning the credit with demonstrated demand would allow Ohio to scale a proven incentive, unlock stalled private investment, and reinforce the state’s position as a national leader in business-friendly, forward-thinking economic development.
The Challenge
- Annual demand for OHPTC routinely exceeds available credits.
- The fixed cap creates timing risk for otherwise viable, ready-to-proceed projects.
- Carry-forward mitigates, but does not eliminate, multi-year delays that destabilize financing.
- Rural and Appalachian markets are disproportionately affected due to thinner margins and fewer alternative incentives.
Why This Matters to Ohio
The OHPTC consistently delivers measurable public value:
- Strong leverage: Multiple dollars of private and federal investment for every $1 of state credit.
- Job creation: Thousands of construction and long-term operational jobs supported statewide.
- Performance-based: Credits issued only after work is completed and verified.
- Statewide impact: Supports downtown revitalization, housing supply, small businesses, and local tax bases across both metropolitan and rural communities.
The program aligns directly with Ohio’s economic development priorities: predictability, competitiveness, and efficient deployment of capital.
Policy Options for a Demand-Responsive Model
Ohio could scale the program while maintaining fiscal discipline through one or more of the following approaches:
Uncapped, Qualification-Based Model
Fund all projects that meet established scoring and readiness thresholds.
Automatic Cap Adjustment Mechanism
Index the annual allocation to verified application demand or scoring cutoffs.
Biennial Budget True-Up
Allow post-award adjustments during the budget cycle to accommodate excess demand without reopening scoring criteria.
Each option preserves program integrity while reducing uncertainty for private investment.
Budget Considerations
- Credits are claimed post-completion, limiting upfront exposure.
- Scaling is tied to verified projects, not speculative projections.
- Increased private investment expands tax base and economic activity, offsetting program cost.
Conclusion
Ohio’s Historic Preservation Tax Credit is working as intended. Aligning the program’s scale with market demand represents a leadership opportunity, one that would amplify economic returns, support communities statewide, and reinforce Ohio’s reputation as a top place to invest and do business.
Prepared by:
Cally J. Lange, AIA, NCARB
Principal, Revival Design | Celina, Ohio
567-644-4672
clange@revivaldesign.co