Senator James Lankford (R-Okla.) published a report in 2015 titled “Federal Fumbles: 100 Ways the Government Dropped the Ball”. In the report, Sen. Lankford takes issue with the Historic Tax Credit, citing the Trump Organization’s Old Post Office hotel project in Washington, DC. As the hotel had a soft opening on September 12th, Congressional Quarterly Magazine revisited the issue in a recent article. The freshman senator from Oklahoma was quoted saying only states and municipalities should be involved in such transactions, not the federal government.
While Sen. Lankford has spoken out against the credit, he has not proposed any legislation to cut the credit. As the issue of tax reform potentially looms after elections, however, it is important to remember that many tax credits could be in jeopardy – as House Republicans have outlined in their tax reform blueprint.
While no specific bill currently exists to cut the Historic Tax Credit, two bills currently exist to expand it. Representative Mike Kelly (R-Pa.) has proposed a bipartisan bill in support of increasing the Historic Tax Credit with a companion measure in the senate proposed by Senator Benjamin Cardin (D-Md.). For more information on Rep. Kelly’s bill, see a previous NH&RA article.
Those interested in improving or preserving the Historic Tax Credit should advocate on its behalf – especially if tax reform is addressed in the near future. Industry members are encouraged to contact their representatives in the House and Senate – scheduling a tour of a project with a member of Congress has proven a successful method for educating members on the benefits of the Historic Tax Credit. The Historic Tax Credit Coalition is also able to provide resources towards this end.
Sen. Lankford replaced Senator Tom Coburn (R-Okla.) in 2014 upon Sen. Coburn’s retirement. It should be noted that Sen. Coburn was also critical of the Historic Tax Credit, deeming it wasteful in his own report covering various tax expenditures.
