U.S. Reps. Mike Carey (R-OH) and Earl Blumenauer (D-OR) are calling on the Internal Revenue Service (IRS) to provide additional guidance on historic preservation easements so they can be more accessible to rural, suburban, and urban communities.
Currently, the federal historic preservation easement program is mostly used to protect historic commercial buildings in large urban areas. This is largely because there is lots of red tape to cut through along with a lack of transparency on how taxpayers can comply with IRS guidelines, making it costly or inaccessible to many.
Due to a lack of clear guidance from Treasury and the IRS, historic building owners are virtually guaranteed multi-year audits that require hiring attorneys and accountants, making the cost of compliance prohibitive, particularly on smaller projects. Also, the lawmakers said the IRS routinely challenges whether changes to historic buildings are consistent with protecting their historic character.
“Ohio is home to countless historic buildings and cultural areas that make our communities unique,” Carey said. “The IRS should act quickly to update its guidance on the historic preservation easement program to help those doing the hard work of preserving our nation’s history.”
Carey and Blumenauer are calling on IRS Commissioner Daniel Werfel to provide clear guidance, including model deeds and easement agreements. They also want the IRS to resolve any outstanding jurisdictional issues. Their goal is to ensure that all taxpayers and property owners who wish to protect historic buildings can have confidence in utilizing the historic preservation easement program.
“Historic preservation allows the continued use and celebration of the key buildings that contribute to our communities’ heritage,” Blumenauer said. “From housing to cultural sites—like Portland’s own Jim Pepper House—these buildings remind us where we come from. The IRS must provide better guidance to support those working to maintain these buildings.”
Along with Carey and Blumenauer, U.S. Reps. Brian Fitzpatrick (R-PA), Linda Sanchez (D-CA), Darin LaHood (R-IL), and U.S. Sen. J.D. Vance (R-OH) sent a letter to the IRS commissioners recently on this matter.