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A RESOLUTION RECOGNIZING THE IMPORTANCE OF THE
REHABILITATION TAX CREDIT TO PRESERVATION ACTIVITY IN
KENTUCKY AND SUPPORTING REPORTS TO RETAIN AND IMPROVE THE
~ EFFECTIVENESS OF THE TAX CREDIT
WHEREAS, the Federal Rehabilitation Tax Credit has ~~~
played a critical role in promoting reinvestment in deterior-
ated historic structures throughout the Commonwealth of
Kentucky; and
WHEREAS, the quality of the Commonwealth's his-
toric buildings and the number of certified rehabilitations
has caused the State to be recognized nationally as a center
of respectful rehabilitation activity and responsible preser-
vation planning; and
WHEREAS, Kentucky has been ranked 8th in the
nation over 700 projects reflecting an investment of well
over $315 million in the. rehabilitation of historic struc-
tures; and
WHEREAS, the City of Paducah has benefitted from ~.il,:;l~'
10 historic rehabilitation prajects representing an invest-
ment of $720,563; and
WHEREAS, the 1986 federal tax reform legislation,
through retaining the rehabilitation credit, imposed rules
on its use that have severely limited its usefulness to many
investors in historic projects; and
WHEREAS, this limitation has resulted in an approxi-
mately 70% reduction statewide in historic rehabilitation
projects; and
WHEREAS, the Community revitalization Tax Act of
1989 has been introduced in the United States Senate by Jack
Danforth and Wendell Ford and in the House of Represents-
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tives by Barbara Kennelly and Romano Mazzoli to remedy the
problem by removing some of the rules and limitations that
have curtailed its use by investors; and
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WHEREAS, communities across the Commonwealth have
encouraged and supported public and private historic preser-
vation projects, and are deeply concerned about the dras-
tically reduced investment following 1986 tax reform.
NOW, THEREFORE, BE IT RESOLVED that the Board of
IV Commissioners of the Cit of Paducah Kentuck recommends.
Y Y.
and endorses efforts to retain and improve the effectiveness
of the rehabilitation tax credit and hereby urges the United
States Congress to act favorably upon the Community
Revitalization Tax Act of 1989.
GERRY B. MONTGOMERY
Mayor
Adopted by the Board of Commissioners June 1, 1989
Recorded by Lenita Smith, City Clerk, June 1, 1989
\misc/rehab.tax
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