No question about it, Cleveland is the comeback city – but right now we need to remember exactly how the city came back.
One of the biggest reasons has been the rehabilitation of old buildings in the area, something that wouldn’t have been possible without the Federal Historic Tax Credit – that’s a credit that’s on the chopping block in the tax cut plan in front of Congress right now.
The credit is 20 percent, and it comes from the Federal government…and those rehabbed buildings are all over Cleveland – Playhouse Square, historic hotels, apartment buildings, and pretty much all of East 4th – made possible, at least in part, by the tax credit.
In the 30 years since it went into effect back during the Reagan years, Cuyahoga County has had 295 federal tax credit projects – 2.2 billion dollars’ worth – and the average project creates 78 construction jobs followed by 93 permanent jobs.
Plus, it pays for itself!
For every dollar the Fed puts out, they get back $1.25 to the treasury in taxes.
So why would this ever be on the chopping block?
Make no mistake, it’s a national tax cut, but trust me this will hurt Cleveland and other Northeast and Midwestern cities a whole lot more than it will hurt other places.
Want to cut taxes? Great. But don’t cut out a key factor in our growth.
Don’t gut the comeback just so that people in the warmer places fatten up their wallets at Cleveland’s expense.
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