Both the Assembly and State Senate have passed legislation that would increase the tax credit for developers restoring historic structures in the state.
The preservation tax code tax credit, which has been law for more than a decade, would increase from $5 million to $12 million. Only 20 percent of the cost of renovation can be claimed for the tax credit.
Long Island tends to have larger and more expensive projects, said Assemb. Fred Thiele Jr. (I-Sag Harbor).
“Increasing the tax credit for builders and developers who want to do business on the East End may give them the added incentive they need to move forward on these projects and create jobs,“ he said in a statement.
The idea of the tax credit is to encourage builders to renovate sites for adaptive reuse instead of tearing them down to construct something new. In Southampton Town, for instance, Rechler Equity is planning to restore the old Canoe Place Inn in Hampton Bays for use as an inn, catering hall and public tap room instead of tearing it down and building town houses -- the original plan. The proposed plan would instead build town homes on property owned by the company across the Shinnecock Canal.
The governor’s office said the legislation is being reviewed; Thiele said it is likely to be signed into law.
Photo: Canoe Place Inn in Hampton Bays. (April 20, 2011)