University of Illinois Urbana-Champaign

A Project-Based Analysis of the Effects of Federal Tax Credits on Historic Rehabilitation

Westphal, Catherine Margaret

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https://hdl.handle.net/2142/71409

Description

Title
A Project-Based Analysis of the Effects of Federal Tax Credits on Historic Rehabilitation
Author(s)
Westphal, Catherine Margaret
Issue Date
1987
Department of Study
Accountancy
Discipline
Accountancy
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
  • Business Administration, Accounting
  • Economics, History
Abstract
  • The purpose of this study is to provide evidence on the effects of the federal historic rehabilitation tax credit (HRTC) on historic rehabilitation. A project-based database, mainly from the National Trust for Historic Preservation, is used to examine historic rehabilitation projects which date from 1977 to 1985. Some projects received no HRTC, others received the 10% HRTC, and others received the 25% HRTC. The requirements for the HRTC, including the requirements of historic significance and the tax law, are reviewed. The theories of externalities, excise subsidies, and elasticity are discussed with reference to the HRTC.
  • There are two related aspects to the data analysis. First, the historic rehabilitation projects are examined for their descriptive information which includes the economic factors of subsidies used and market conditions and the composition factors of size and exterior characteristics of the building, condition of the building, and neighborhood and area characteristics. Second, regression analysis is performed on the effects of the factors on the spending on historic rehabilitation projects.
  • Some of the descriptive statistics indicate that the number of projects, aggregate total spending, and average total spending per square foot increased over the HRTC periods. The average project size decreased with the 25% HRTC period. The average age of the buildings and the completion time decreased over the HRTC periods. In all periods, the majority of projects did not use government funding, were of nonwood construction, were rehabilitated for residential use, and were located in a historic district.
  • The regression results found that the 10% HRTC and 25% HRTC did not significantly affect spending per square foot on the projects. Significant factors in explaining spending are the size and age of the building, type of construction, use on completion, and location.
  • This study's contribution to the literature is the use of a project-based approach which includes noneconomic factors.
Graduation Semester
1987
Type of Resource
text
Permalink
http://hdl.handle.net/2142/71409

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Dissertations and Theses - Accountancy