Establishing a federal homeowners tax credit

Abstract

After years of disinvestment in urban neighborhoods the federal government needs to create policies to encourage revitalization of these areas that have been neglected for decades. The benefits of such policies include economic growth and sustainable development. A federal historic homeowners’ tax credit can be used to help spur urban revitalization in the United States by making reinvestment in urban areas more affordable for middle class residents. Although never passed, the National Trust for Historic Preservation and Preservation Action proposed the Historic Homeowners’ Assistance Act (from 1993-2001) that would create a federal homeowners’ tax credit. This paper explores the benefits of reintroducing the Historic Homeowners’ Assistance Act, and how it can be improved to make the tax credit more usable for middle income homeowners.