The best part? HTC is a tax program that pays for itself. Nearly $30 billion in federal tax revenue has been generated as a result of the program. That accounts for at least $1.18 back to the federal government for every dollar in tax credits; or, a minimum 18 percent return on investment, according to the most recent annual historic tax credit economic impact report published by the Center for Urban Policy Research at Rutgers, the State University of New Jersey.
This program works, particularly in cities like Cleveland, by closing the gap between private dollars and bank financing. It creates equity in the buildings, making them economically viable projects and sound investments for developers.