OMAHA, Neb. (KMTV) — Gov. Pillen proposes ending credit that helped renovate Omaha's Cottonwood Hotel and hundreds of other historic buildings.
- Gov. Jim Pillen has proposed eliminating the state's historic preservation tax credit to help close a nearly $400 million budget deficit
- A tax credit has helped fund renovations of significant Omaha buildings, including the Cottonwood Hotel and Dundee Bank's Blackstone branch, by making preservation projects financially viable
- Preservation advocates argue the credit is essential for maintaining the city's unique architecture and attracting visitors
BROADCAST TRANSCRIPT:
A Nebraska tax credit that helps preserve historic buildings like Omaha's Cottonwood Hotel and Dundee Bank could be eliminated as state lawmakers look for ways to close a budget gap of about $400 million.
Gov. Jim Pillen is asking the Legislature to end the Nebraska Historic Tax Credit, which gives developers a tax break of up to 25% for saving old buildings and turning them into revenue-generating spaces like stores, offices, or apartments.
Sen. Dave Murman introduced the bill supporting the governor's proposal.
"I believe our current path is not sustainable," Murman said during a hearing at the Legislature on Wed., Feb. 4.
The Cottonwood Hotel completed its renovations in 2020 using the credit.
Kim Isherwood leads Preserve Omaha, which works to protect the city's historic buildings. She said the credit is essential for making preservation projects financially viable.
"That tax credit steps in and make those projects financially viable," Isherwood said.
Opponents to the legislation argue the funding helps maintain Omaha's architectural character and attracts visitors.
"It would be a travesty for any of that to be lost to someone just saying, 'Oh it would be so much cheaper to just build a rectangular box,'" Isherwood said. "They don't come to see boring rectangular buildings and parking lots. They come to see gorgeous architecture and history."
The proposal is one of multiple measures being considered to address Nebraska's budget shortfall.
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