Committee hears bill to create 25% tax credit for mill and factory rehabilitations

Representative Freeman presented House Bill 1575, a proposal to create a targeted tax credit of 25% of rehabilitation or reconstruction costs for certified mills and factory complexes to encourage adaptive reuse and redevelopment.

“...this bill would establish a tax credit of 25% for the rehabilitation, or reconstruction costs of a certified factory or mill complex to promote its redevelopment,” Representative Freeman told the committee. He said the proposal would include a $15 million program cap and a per-project maximum of $1.5 million, mirroring the per-project cap discussed in a parallel historic-preservation proposal.

Freeman and other members cited local examples of successful mill and factory reuses. Freeman invoked the Thirteenth Street Silk Mill in Easton as an example of a rehabilitated factory that now houses restaurants, retail and apartments and serves as an economic anchor. Supporters said a targeted mill-and-factory credit would relieve pressure on the broader historic-preservation program and direct resources to large industrial projects that require high capital outlays.

Committee members expressed general support for the policy goal but flagged budget concerns in a tight fiscal year. Chair Griner said he was uncertain how he would vote because of the state budget but praised the concept of adaptive reuse. Members asked whether the credit would follow the same pay-out and certification process as the historic program; witnesses confirmed credits are typically issued after work is complete and the building is placed into service.

The committee did not vote on the measure at this meeting. The chair said he plans to bring both the historic-preservation and mills-and-factories bills up for committee votes next week during the next session days.