Mississippi Historic Tax Credit Program
Reauthorized During the 2020 Legislative Session
Thank You Mississippi Legislature
Hallelujah! During the 2020 legislative session, Mississippi’s lawmakers reauthorized the highly successful Mississippi Historic Tax Credit Program by allocating an additional $60 million dollars and extending the program deadline to 2030. The legislation also removed the $1 million-dollar threshold to allow smaller projects to take advantage of the 75% tax rebate. The Mississippi Heritage Trust worked collaboratively with many partners, including Downtown Jackson Partners, Historic Natchez Foundation, McLaughlin PC, Mississippi Main Street Association, Mississippi Municipal League and many dedicated developers, to educate lawmakers about the incredible projects happening all across our state to rehabilitate Mississippi’s historic schools, churches, commercial and industrial buildings to become community resources such as retail shops, offices, apartments and event venues.
With original wood paneling, law library bookcases, marble walls and terrazzo floors intact, the U.S. Courthouse and Post Office in Jackson is set to make its debut as a mixed-use development with 103 apartments, fitness center, food court and a sky bridge to the pool deck in Jackson of its sister development Walthall Lofts by the end of November.
House Bill 1729, which was passed by overwhelming majorities in both the House and Senate, was introduced by Representative Trey Lamar, who hails from the historic town of Senatobia. “Mississippi’s Historic Tax Credit Program has encouraged millions of private investment dollars into our downtown historic districts that would not have been realized otherwise,” says Lamar, who serves as chair of the House Ways and Means Committee. “These projects have breathed new life into the old souls of many towns across Mississippi, encouraging a greater sense of community pride and stimulating the economic benefits that naturally follow private investment. I am proud to have helped reauthorize Mississippi’s Historic Tax Credit and will continue to support its success.”
Administered by the Mississippi Department of Archives and History, Mississippi’s 25% Historic Tax Credit Program has helped to save over 329 historic places in 50 cities, spur the investment of approximately $297 million dollars in local, qualified, non-acquisition related historic construction expenditures, create approximately 3,119 construction jobs and 3,236 permanent jobs, generate over $169 million dollars in household income and $141 million dollars in business income and earn approximately $9 million dollars in local taxes, $9 million dollars in state taxes and $49 million dollars in federal taxes since it was first enacted in 2006. The economic benefits of the historic tax credit program are undeniable. Every $1 invested in state historic tax credits generates $6 of construction expenditures, leverages $5.71 of economic activity, contributes $3.31 to gross state product, enhances in-state wealth by $2.98, leverages $2.90 in private investment, adds $2.48 in labor income and attracts $.80 of federal historic tax credits.
For Chris Chain, who was the first developer in Mississippi to embrace the concept of converting historic commercial buildings into apartments in his hometown of Columbus, these numbers only tell part of the story. “I am working on 34 projects in Mississippi and the credits are instrumental in making these projects successful,” says Chain. “They provide income and jobs but even more importantly, they help to save the places that tell Mississippi’s story. The rehabilitation of one historic building creates a snowball effect, encouraging other property owners to take on projects. Our heritage is so important, we must keep restoring these historic places to benefit generations to come. Mississippi has so many historic buildings that need to be saved and tax credits help tremendously in the effort to do this. Save our heritage!”
The Federal Building in Tupelo is being converted into an 18-unit apartment complex, with owner and developer Bev Crossen claiming the penthouse suite as her own. Helping to make this $4.5 million-dollar restoration a reality is Bancorp South, Pryor-Morrow Architects and contractor Chris Chain with RMI. Photo Credit: Thomas Wells, Northeast Mississippi Daily Journal
The c. 1907 America Building in downtown Hattiesburg was restored in 2013 using state and federal historic tax credits to become apartments with shops on the ground floor.
Topped by a lovely witch on her crescent moon, the second floor of the Ellzey Building in downtown Biloxi was restored in 2006 utilizing state and federal historic tax credits to become offices.
With the help of state and federal historic tax credits and the craftsmanship of Jamie Carpenter and Rusty Roberson with Moss-Carpenter Construction, Mollie and John Spencer have transformed this 135-year old building in downtown Senatobia to become the new home of Community Pharmacy and Mac & Charlie’s Soda Shoppe on the ground floor, with apartments on the second floor.
Data analysis prepared by the Mississippi Heritage Trust with data provided by Economic and Fiscal Effects of the Mississippi Historic Preservation Tax Incentives Program prepared by the John C. Stennis Institute of Government at the request of Speaker of the House Philip Gunn, 2016 and Mississippi Department of Archives and History.