The Historic Tax Credit and Mississippi Small Business Investment Act, as originally proposed, would provide $100 million for historic buildings that are being renovated for commercial and residential purposes. The original bill, which was sponsored by Joey Fillingane (R-Sumrall), would limit the amount of funds that could be allocated to projects for any given year to $8 million. The House version increased the total cap to $120million, but eliminated the annual limit. Fillingane stated to Mississippi Today that he hadn’t had the chance to review the House’s modifications to the measure. The House version awaits action by a joint conference committee. Members of that committee are not known. After Hurricane Katrina, the Legislature established the program to boost the state’s economy. Developers can apply for a 25% credit on eligible costs. They will receive a 75c per dollar cash refund if they are approved. Nonprofit organizations are not eligible for this program, but landmarks in Mississippi and buildings on the National Register of Historic Places are eligible. The original $60 million that the Legislature had allocated was no longer available. This left many projects without the ability to benefit from the tax credits. The King Edward Hotel is just across the street from downtown Jackson’s revitalization project. HRI Properties in New Orleans, which has redeveloped King Edward and the nearby Standard Life, plans on renovating the buildings into lofts. The Capitol Art Lofts will include 31 units, common areas and gallery space. Artists and health-care workers will have preference for leasing. Josh Collen, a vice president of HRI, stated that once credits are approved for the $10.4million project HRI could close the deal in 60 days. The state historic tax credits will be used by the arts lofts, as well as federal tax credits and low income housing tax credits. Collen said that the proposed annual limit would prove problematic as developers cannot forecast exact costs and thus cannot factor in the credits to project financing. He stated that a cap would “functionally kill many good projects.” According to Elevation, a publication by the Mississippi Heritage Trust, there are still 25 projects that need to be reauthorized under the historic tax credit program. These include the rehabilitation and expansion of 18 vacant storefronts within Water Valley and the Centennial Plaza project, which includes 10 buildings on 57 acres in Gulfport as well as a former Sears shop in Greenville. At the request of Speaker Philip Gunn (R-Clinton), a Mississippi State University research team prepared an economic analysis of the program’s economic benefits in August 2015. The study concluded that tax credit-related development contributed $200 million to the state’s gross product over nine years. It also generated $16.4 million in tax revenues locally and state. The report’s authors stated that historic tax credits are more beneficial for the state’s long-term economy than other types of incentives such as credit for large-scale manufacturing plants. Researchers wrote that all states have experienced the joy of recruiting large industries only to see them close down or reduce their workforce in a matter of years. “Investments in rehabilitation of historic buildings show less mobility than other investments that receive tax incentives; historic renovations increase the value of the structure after completion of construction and make an ongoing contribution to historical aesthetics of the community regardless its use once it is placed in service.” The fate of an amendment Sen. David Blount (D-Jackson), successfully introduced to the Senate before it was sent to the House, will be decided by committee members. Blount’s amendment would remove a tax credit for cultural retail attraction that the Legislature approved in 2013. It was applicable to any project that is not completed by summer 2016. The Mississippi Development Authority states that projects worth $100 million can be eligible for the credit. This credit allows 50 tenants to apply and gives back a percentage of the sales tax. Blount stated last week that the state of Mississippi and taxpayers should not be subsidizing shopping centers in times of budget crisis. Blount’s amendment was rescinded by the House. Fillingane stated that although he supports the reduction of retail credit, he hopes conferees will be able to reach an agreement that doesn’t stop the renewal of the tax credit program. Blount is also a supporter. Chris Gouras is a consultant for Ramco Developments in D’Iberville, which plans to construct a $350M Gulf Coast Galleria north of Biloxi. He said that the credit was essential to finance large-scale retail development. Gouras stated that he believes legislative efforts to reverse the approval of these projects are bad public policy._x000D