Madison Roadhouse Legacy “The Wonder Bar” Could Still Be Saved

The Wonder Bar Steakhouse at 222 E. Olin Ave, Madison, Wisconsin, is threatened to be demolished as a result of a new development by the McGrath Property Group. The proposed new project is an 18-story, $40 million structure that would offer 291 apartments, 16,000 square feet of commercial space and five floors of parking, according to the report by the Wisconsin State Journal on July 14, 2021. Lance McGrath has shown interest in donating the over $250,000 cost of demolition toward relocation if a suitable site within close proximity could be found. The building, measured approximately 48 by 48 feet, is estimated to weigh between 800,000 to 950,000 pounds.

The Wonder Bar Steakhouse Architecture and History Inventory, Wisconsin Historical Society

The Wonder Bar Steakhouse
Architecture and History Inventory, Wisconsin Historical Society

The Opening of Eddie’s Wonder Bar

The two-story brick structure was financed by Roger Touhy, an infamous prohibition-era gangster who ran the North Side Chicago Mafia and led gambling rings and other illegal activities, including brewing beer and distilling illegal spirits.

Roger’s financial success allowed him to give his brother Eddie Touhy the money to expand the business to Madison and built “Eddie’s Wonder Bar” around 1930. Eddie lived in the apartment upstairs. Three sisters, Mandie Burgin, Mamie Collier, and Ruby Farringer ran the Wonder Bar for Eddie until he sold it to Joe and Marian Kassak in 1948. The bar was then sold to Dick Whalen in 1974. During the 1970s and 1980s, the bar was a favorite watering hole of Badger athletics fans.

After a few name changes, such as “Madison Cigar Bar,” “The M.O.B. Roadhouse,” and “The Bar Next Door,” its name was changed back to “The Wonder Bar Steakhouse” in May 2009 by Dennie Jax. Jim Delaney purchased the Wonder Bar in 2017.

Unfortunately, due to the impact of the COVID-19 pandemic, the restaurant was closed at the end of May this year.

Eddie’s Wonder Bar, 1983 Architecture and History Inventory, Wisconsin Historical Society

Eddie’s Wonder Bar, 1983
Architecture and History Inventory, Wisconsin Historical Society

Preserving Prohibition Era History

The restaurant speaks to the important histories of the Prohibition Era. The Madison City Landmarks Commission commented that the Wonder Bar Steakhouse is a rare remaining example of Prohibition-era roadhouses.

According to restaurant historian Jan Whitaker, before the Civil War, roadside drinking and eating places on the outskirts of cities were popular destinations of people who enjoyed leisure activities outside the cities.

With the development of railroads, more rowdy crowds brought unsavory reputation to these places. For example, Minnesota legislated against roadhouses in 1915, and towns around Chicago fought them and often succeeded in having their liquor licenses taken away.

Few roadhouses survived the Prohibition Era (1920-1933), and Eddie’s Wonder Bar is one of the few that lasts till the present day. Another example is the Kegel’s Inn in Milwaukee, which opened in 1924 and was recently named as one of the Nation’s 25 Historic Small Restaurants.

History in the Network of Roadhouses

Kurt Stege, President of the Madison Trust for Historic Preservation advocacy committee, also indicated that the building was associated with “a network of roadhouses constructed at the edges of cities and operated for the purpose of distribution of illegal alcohol,” and its design conforms with what a bar looked like in the era. The building resembles a fortress castle, which also enhances its association with gang wars.

According to a draft city landmark nomination submitted by the Madison Trust for Historic Preservation in 2008, a body was buried behind a second-floor fireplace; its window glass was bulletproof; and the circular booths set in the building's towers had hidden compartments for weapon storage. Whether these interior details are true or fictional, like many roadhouses at the time, the site was affiliated with gangsters and experienced intense rivalries and police surveillance in the early years of its establishment.

 

Roger Touhy The Wonder Bar Steakhouse Website

Roger Touhy
The Wonder Bar Steakhouse Website

Eddie’s Legal Troubles

The same draft city landmark nomination also mentioned that Roger Touhy was sentenced to 99 years in prison at the Stateville Correctional Center near Joliet, Illinois in 1934 for the kidnapping of John Factor, the brother of cosmetics company founder Max Factor. Insisting that he was being framed, Roger escaped on December 2, 1942. In the book The Stolen Years, published in 1959, Roger shared, “My best source was my brother, Eddie. He owned a roadhouse, Eddie's Wonder Bar, near the state fairgrounds outside of Madison, Wisconsin. But getting a meeting with him was almost as tricky as getting out of Statesville.”

Eddie and his bar were under intense surveillance by the FBI. Eventually, Roger was recaptured on December 29, 1942. After 17 years in prison, he was finally paroled in November 1959, but was shot to death in the following month likely by his gangster rivals.

Modern Preservation Efforts

Unable to found a good solution, community members and preservationists still hope to save this historic bar. An online petition “Save The Wonder Bar – Madison’s Prohibition Roadhouse” to the Citizens of Madison and the City of Madison has been started, expressing opposition to demolition. McGrath’s proposal will be considered by the Plan Commission on July 26, and the City Council on August 3. The construction is intended to start in the fall. Please consider joining the group and the Wisconsin Trust for Historic Preservation to support this petition.


More ways to help!

  1. Register your opposition with the Plan Commission at https://cityofmadison.com/city-hall/committees/plan-commission/7-26-2021 Click "Register for Public Comment" Choose Item 5 and say you "oppose" it.

  2. Speak for up to 3 minutes virtually at the Plan Commission. Say you support preserving the Wonder Bar. Ask Plan not to grant a demolition permit until the Landmark Commission reviews the Wonder Bar for Landmark status.

  3. In addition, you can also send an email allalders@cityofmadison.com.

 

Having any ideas on possible sites for relocation or other related thoughts? Please contact hongyan@wipreservation.org.


 Learn More and reference items

Wisconsin Historical Society, Wisconsin Architecture and History Inventory: Eddie’s Wonder Bar

MOSIMAN, DEAN. "ROADHOUSE LEGACY SHAPED BY AREA'S COLORFUL HEYDAY WONDER BAR | A BRIEF HISTORY." Wisconsin State Journal (Madison, WI), ALL ed., sec. FRONT, 14 July 2021, p. A11.

MOSIMAN, DEAN. "A SLICE OF LORE AWAITS RESCUE OLD STEAKHOUSE OF THE SPEAKEASY DAYS FACING DEMOLITION MADISON HISTORY | WONDER BAR." Wisconsin State Journal (Madison, WI), ALL ed., sec. FRONT, 14 July 2021, p. A1.

HAMER, EMILY. "HISTORIC WONDER BAR BUILDING COULD BE MOVED." Wisconsin State Journal (Madison, WI), ALL ed., sec. LOCAL, 14 May 2021, p. A3.

 MOSIMAN, DEAN. "18-STORY BUILDING PROPOSED PROJECT WOULD RAZE LOCAL BARS TO CREATE HOUSING, OFFICE SPACE SOUTH SIDE | DEVELOPMENT." Wisconsin State Journal (Madison, WI), ALL ed., sec. FRONT, 8 Apr. 2021, p. A1.

Historic Tax Credit Growth and Opportunity Act Now Introduced in Both the House and Senate

In April 2021, Representatives Earl Blumenauer (D-OR) and Darin LaHood (R-IL) introduced the Historic Tax Credit Growth and Opportunity Act (HTC-GO) in the House of Representatives (H.R. 2294), which has received nearly 60 bipartisan support.

In June, similar legislation was introduced in the Senate (S.2266) by Senators Ben Cardin (D-MD), Bill Cassidy (R-LA), Maria Cantwell (D-WA). and Susan Collins (R-ME). This is great news for Wisconsin property owners looking to restore their historic buildings. The Wisconsin Historic Preservation Tax Credit Program also provides additional 20% historic tax credits to owners as a Wisconsin income tax credit for rehabilitating historic income-producing buildings.

1610 N 2nd St, Milwaukee WI

1610 N 2nd St, Milwaukee WI

Refresh: What is the HTC?

The Federal Historic Tax Credit (HTC) is a 20% credit applied to qualified rehabilitation expenses for certified historic structures distributed over 5 years (4% per year). It represents, by far, the largest federal investment in historic preservation.

Since its inception, the credit has contributed to the rehabilitation of over 45,000 historic buildings and the construction of over 172,000 low- and moderate-income affordable housing units. The HTC also plays a major role in revitalizing our communities and supporting our nation’s economy. It has attracted approximately $173 million private investment, generated $38.1 billion in federal tax revenue, and created nearly 3 million jobs.


 New HTC for Temporary Provisions

The new version of HTC-GO includes temporary provisions that will bring relief to projects impacted by the COVID-19 pandemic. Developers and building owners nationwide are now facing increasing challenges in rehabilitating historic properties as our economy slowly recovers. The HTC-GO legislation temporarily increases the rehabilitation credit (IRC § 47) from 20% to 30% thorough 2021 and phase down to 26% in 2025, 23% in 2026, and returns to 20% in 2021 and thereafter.

In addition, the HTC-GO includes permanent provisions that will bring more value to the HTC, improve access to the credit, and enhance investment opportunities for smaller rehabilitation projects. The bill would increase the credit from 20 to 30 percent for projects with rehabilitation expenses of less than $2.5 million. 

Taking Action to Grow the HTC

These provisions were included and passed in the House Infrastructure bill (HR 2) in July 2020. We urge you to ask your members of Congress to support HTC-GO and to include the bill provisions in a larger infrastructure package. There are several ways you can reach out to your Senators:

  • Fill out this advocacy alert on SavingPlaces.org by the National Trust for Historic Preservation.

  • Call Your Senators Directly: To locate the names, phone numbers and websites of your Senators via the Senate website or call the Capitol Switchboard at 202-225-3121 and asked to be connected to your or Senator’s DC office. Once connected ask to speak to the Member’s staff or staffer that handle tax issues.

  • You can also communicate on the Member’s website. For Sen. Ron Johnson, please visit https://www.ronjohnson.senate.gov. For Sen. Tammy Baldwin, please visit https://www.baldwin.senate.gov. Send a message to your Senators through their website and select “tax” or “taxation” as the issue area.

Please share responses from Senate offices and acquire assistance with your advocacy by emailing: hongyan@wipreservation.org.


Learn more:

  1. National Trust for Historic Preservation and Historic Tax Credit Coalition: HTC-GO Bill and Fact Sheet (April 2021)

  2. Carl Wolf: On the Hill: Historic Tax Credit Growth and Opportunity Act (HTC-GO) Now Introduced in Both the House and Senate

Good News for Wisconsin Places on America’s 11 Most Endangered List

The National Trust for Historic Preservation publishes an annual list of America’s 11 Most Endangered Historic Places with the goal of raising awareness of these vulnerable properties around the country, which are at risk of irreparable damage or destruction.  The list has included over 300 sites since 1988 and has been highly successful at galvanizing preservation efforts.

Two Wisconsin places have made the list in recent years: Milwaukee Soldier’s Home (in 2011) and the Mitchell Park Domes (in 2016).

Milwaukee Soldiers Home

Milwaukee Soldiers Home—the most intact original VA campus in the nation and a National Historic Landmark District—after long years of deterioration, has experienced a dramatic turnaround.  In March of this year, six of the historic buildings, including the spectacular Old Main, have been refurbished and reopened as supportive housing for veterans at risk of homelessness.  This success was the result of collaboration between local partners and heightened publicity from the National Trust and Milwaukee Preservation Alliance.

But three other historic structures on the campus—the 1889 Chapel, 1881 Theater, and 1868 Governor’s Mansion—remain vacant and endangered. The Milwaukee Preservation Alliance received a 2020 National Trust matching grant to fund a study into viable reuse strategies for these buildings. The study will serve as a resource for the VA to develop an RFP (Request for Proposals) for the rehabilitation of these remaining treasures. This should ensure that successful reuse and preservation extends to the entire campus.

For more: Save Our Domes

For more: Save Our Domes

Mitchell Park Domes

After its 2016 designation on the National Trust 11 Most Endangered list, Milwaukee’s Mitchell Park Domes has received an outpouring of support from the community.  The #SaveOurDomes campaign succeeded in raising awareness and it appears that demolition of the beloved Domes is off the table.  But despite that, subsequent progress toward concrete measures has been slow. Reports, studies, recommendations, and materials testing have been done and the County has committed to funding allocations for final analysis.  But the funds were not spent in 2020 and progress in 2021 has been slow.  Efforts continue to heighten public awareness and to push for definitive long-term action that will save the irreplaceable Domes.

Kegel’s Inn Named One of Nation’s 25 Historic Small Restaurants

Kegel's Inn
5901 W National Ave
West Allis, WI 53214
(414) 257-9999 | kegelsinn.com

Kegel’s Inn has been honored as one of 25 historic small restaurants in the United States. The National Trust for Historic Preservation and American Express designated the restaurants as historically and culturally significant.

Each restaurant will receive $40,000 through the “Backing Historic Small Restaurants” Grant Program. Funded by American Express and administered by the National Trust, the grant will help “enhance restaurant exteriors, build new outdoor seating areas, and upgrade online business to help mitigate operating costs as they work to recover from the financial impacts of the pandemic.” 

This is good news for Kegel’s Inn, which has been serving traditional German food at the same location since 1924. The restaurant was established by John T. Kegel and his wife Anna Bevc and is still operated by the Kegel family today.  

A Soft Drink Parlor
Born in Austria in 1892, John T. Kegel immigrated to the United States in 1911. He married Anna in 1915 and in 1918 they moved to West Allis. After working at various jobs, John was ready to start his own business. He hired contractor Roy Nordstrom to build the original structure on National Avenue. John and Anna established Kegel’s Place in December 1924 as a soft drink parlor. Similar to other soft drink parlors during Prohibition the Kegel family brewed beer in the basement and surreptitiously brought in other liquor.

Figure 1: Pictured: John Kegel Open for Business in His “Soda Pop Parlor” |  Source: Kegel’s Restaurant

Figure 1: Pictured: John Kegel Open for Business in His “Soda Pop Parlor” | Source: Kegel’s Restaurant

Things went smoothly for a time as most of the neighborhood population was German and Kegel’s fit well into the local drinking culture. Plus, the beautiful leaded stained glass windows provided some concealment of the interior space.

Figure 2. Anna Kegel’s Arrest for Liquor Possession

Figure 2. Anna Kegel’s Arrest for Liquor Possession

But the good times were over when, on May 1, 1927, state agent J. Rupnik apprehended Anna Kegel for possession of non-intoxicating liquor (figure 2). With both luck and a good attorney, Kegel’s Inn was spared the fate of being shut down as so many other soft drink parlors had been. Interestingly, in the following year, Wisconsin ended its official enforcement of Prohibition, five years earlier than the Federal annulment of Prohibition.

Expansion and A New Name
Shortly before Prohibition was officially repealed in April 1933, the Kegel family took over the west half of the building and significantly renovated it, including an addition to the south. Described as the “largest tavern built since the return of beer,” the renovation was done by Milwaukee architect Mark Pfaller/ Pfaller Architectural Associates, Inc., the oldest continually operating family-owned architecture/engineering firm in Wisconsin.

German interior design artist Peter Gries hand-painted all the murals inside the restaurant. The exterior was designed in English-inspired Tudor Revival style with a Lannon stone veneer. The construction took a little over a year. The restaurant reopened on August 26, 1933, renamed “Kegel’s Inn.”

Figure 3. Murals behind the Bar by Peter Gries |  Source: Kegel’s Restaurant

Figure 3. Murals behind the Bar by Peter Gries | Source: Kegel’s Restaurant

Historic Past, Strong Future
Kegel’s Inn was listed on both the State and National Registers of Historic Places in 2010
. After nearly a century and many ups and downs along the way – including the COVID-19 pandemic – Kegel’s is going strong, retaining its original building, Gries’ delightful murals, and the famous German food and beer - including its popular Friday Fish Fry and outdoor Beer Garden. Kegel’s Inn is most deserving of its historic accolades.

Figure 4. Exterior of Kegel’s Inn after renovation Source: Kegel’s Restaurant

Figure 4. Exterior of Kegel’s Inn after renovation
Source: Kegel’s Restaurant

Figure 5. Present Façade of Kegel’s Inn Source: Wisconsin Historical Society

Figure 5. Present Façade of Kegel’s Inn
Source: Wisconsin Historical Society

Learn more about Kegel’s Inn

American Express and the National Trust for Historic Preservation Announce the 25 recipients of the “Backing Historic Small Restaurants” $1+ Million Grant Program. Reference page

 Wisconsin Historical Society, Architecture and History Inventory. Reference page

 A Rich & Storied Past - Kegel's Inn. Homepage

What Does Historic Designation Mean in Wisconsin? Explaining the Three Levels

 There are three levels of historic designation in Wisconsin:

  1. Federal

  2. State

  3. Local

This article will explain what each designation means for a property and the differences between them.

NR_Plaque1.jpg

The National Historic Preservation Act & The National Register of Historic Places

In 1966, The National Historic Preservation Act was passed by the Federal government effectively establishing the National Register of Historic Places (NRHP) as the official federal list of districts, sites, buildings, structures, and objects that are worthy of preservation.

It also required each state to establish a preservation plan and an office for historic preservation, called the State Historic Preservation Office (SHPO). National designation as a historic property is an honorific. The intent of the act was, and is, to affirm historic preservation as a public good.

The Act does not, however, create any limitations on private property ownership. Federal agencies, are obligated by the Act to identify, evaluate, and nominate to the NRHP any properties they deem eligible. In addition, any properties, including those privately owned, that receive Federal funding or involve Federal action or approval, are required to undergo a review intended to protect historic features, called a Section 106 Review, This review only encourages historic consideration and does not require it.


Wisconsin’s State Historic Preservation Office

Wisconsin’s State Historic Preservation Office (SHPO) reviews all applications to the National Register (NRHP). This office is a resource for Wisconsin citizens to apply for the NRHP and will assist in the process.

 The SHPO will advise if the application is deemed eligible for the NRHP. If so, they will forward the application to the National Park Service (NPS), which administers the NRHP. Rarely will an application approved by the Wisconsin SHPO be denied by the NPS. Additionally, once the Wisconsin SHPO deems a property eligible, it is automatically considered eligible for the State Designation.


The State Register of Historic Places

The Wisconsin SHPO maintains the State Register of Historic Places. Being listed on the State Register of Historic Places does not place any restrictions on property owners. More information can be found at the SHPO website: “How to Get a State or National Historic Designation for Your Building.”

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National Historic Landmark Status

In addition to the National Register of Historic Places, properties that are deemed having exceptional national significance may be listed as a National Historic Landmark (NHL). This is a separate process from a National Register nomination and is solely a federal process through the National Park Service. As of May 2021, there are currently 44 Wisconsin properties listed as NHLs compared to over 2,500 Wisconsin property listings in the NRHP.


Historic Preservation Commissions

On the local level, a municipal Historic Preservation Commission (or similar name), may review local properties for historic designation. Not every municipality will have a Historic Preservation Commission, depending on local ordinances. Restrictions on property, if locally designated as historic, will also vary by ordinance. Only a local designation, depending on the local law, could restrict property ownership. Typically, local governments with preservation ordinances confer the highest degree of protection to historic properties, as a review board will consider any proposed alterations to the property.

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Historic Tax Credit Program

Two separate programs, administered by the Internal Revenue Service and the Wisconsin Department of Revenue, are available to Federal and State designated properties, called the Historic Tax Credit Program. This is not available to properties that are only designated on a local register. This program offers a 20% Federal Tax Credit and a 20% State Tax Credit to income-producing properties.

Work to rehabilitate a historically designated building can be deducted as a tax credit. All work must meet the Secretary of the Interior’s Standards for Rehabilitation and the property must be held by the owner for at least five years. Other requirements apply. While the Wisconsin SHPO will certify that rehabilitation work meets the Standards, they do not administer the tax credits. Further information may be found here: Tax Credits for Historic Income-Producing Buildings.

 

Please reach out to the Wisconsin Trust for Historic Preservation or the SHPO if you have further questions. We are here to help!

Read more: Importance of Preservation Highlighted in Upgrade of Frank Lloyd Wright School Building

The only public grammar school designed by Frank Lloyd Wright is currently undergoing restoration in Southwest Wisconsin. The Kenosha News recently highlighted the effort to preserve not only the building, but its use as an educational facility. Read a brief summary below and the full piece here: Watch now: Frank Lloyd Wright school building getting an upgrade for more events and programming (April 19, 2021).

Work on the Wyoming Valley School | Source: Steve Apps, State Journal

Work on the Wyoming Valley School | Source: Steve Apps, State Journal

Students learn in the east classroom of the Wyoming Valley School | Source: Wyoming Valley School Cultural Arts Center

Students learn in the east classroom of the Wyoming Valley School | Source: Wyoming Valley School Cultural Arts Center

The school opened in 1958 and served the River Valley School district until 1990. It has served as a Cultural Arts Center for the past 10 years and will reopen in 2022 after restoration is complete. In addition to a new roof, the chimney is being rebuilt, wooden window sashes repaired, and the foundation restored. The design includes ample natural light, exposed beams covered in mahogany, and a double-sided fireplace. More details may be viewed in the article’s embedded video.

Preservation has been shown to provide economic benefits to the area in which a historic building sits. In that spirit, nearly half of the project has been financed by a Community Development Investment grant from the Wisconsin Economic Development Corporation. Clearly, this is a Place That Matters.

Read the full article here.

Mid-Century Buildings Eligible for Historic Tax Credits

The following is excerpt from an article printed in the Milwaukee Journal Sentinel, April 1, 2021.

A recent article from the Milwaukee Journal Sentinel points out that buildings constructed in the 1950s and 60s are eligible for placement on the National Register of Historic Places. As these structures are over 50 years old they now meet one of the criteria for the registry. Recognition on the National Register makes a building eligible for state and federal historic preservation tax credits toward renovations.

Marshall & Ilsey Bank Building Milwaukee, 770 N. Water Street

Marshall & Ilsey Bank Building

Milwaukee, 770 N. Water Street

Mid-Century Becomes Historic

According to the article, of the “2,000 buildings listed by the [local] Milwaukee Historic Preservation Commission, only a handful were built in the 20th century’s second half.” It is more common to think of buildings built before World War II as historic, but the architectural value of structures considered “mid-century”, or from the 50s and 60s, is also significant.

A number of downtown Milwaukee buildings are currently in the process of seeking historic designation, including the former Marshall & Ilsey Bank Building at 770 N. Water Street and the former St. Catherine’s Residence for Young Women at 1032 E. Knapp Street.


Milwaukee Buildings Looking for Historic Status

Other buildings, in recent years, have applied for local historic designation and been denied by the Common Council. The Marcus Center was determined to be ineligible for a number of reasons, primarily 1990s replacements of original materials, which removed architectural integrity. In December of 2020, the Forest Home Library was rejected for historic designation after a vigorous debate.

It is expected that more mid-century buildings will be considered for preservation and historic status. Reaching historic status would make the Mitchell Park Domes eligible for state and federal historic tax credits and aid in the financing of needed repairs. The Milwaukee County War Memorial Center is another excellent example of the city’s history that may be deserving of historic designation. According to Jeff Joseph, interviewed for the article, “If we lose the history of modern buildings, we lose the history of our innovation.” This is a strong reminder to all working to preserve Places the Matter. 

Read the full article on JSOnline

Contact House Representatives to Strengthen Historic Tax Credits

Urge your House Representative to cosponsor Historic Tax Credit improvement legislation!

Reprinted from National Trust for Historic Preservation Newsletter | April 5, 2021

On April 1, Representatives Earl Blumenauer (D-OR) and Darin LaHood (R-IL) introduced a new version of the Historic Tax Credit Growth and Opportunity Act (HTC-GO) in the House of Representatives. The legislation includes temporary tax provisions to bring relief to projects impacted by the pandemic, and contains permanent provisions that add value to the federal Historic Tax Credit (HTC), improve access to the credit, and increase investment in smaller rehabilitation projects. The introduction of companion legislation in the Senate is expected soon.

The HTC is a proven tax incentive for both revitalizing historic community assets and supporting economic development and recovery. Please contact your House Representative and encourage them to cosponsor the HTC-GO.

What’s in the new version of the HTC-GO legislation?

Temporary Provisions

Developers and building owners are experiencing challenges in rehabbing historic buildings. The financial markets have slowed to a crawl, making it difficult for projects to access capital and stalling complex historic real estate developments. The increased volatility in the market and project risk is forcing banking institutions to decrease their loan frequency and the overall amount while tightening underwriting requirements. Increases in material and construction costs and an uncertain tenant market have further impacted potential developments. As a result, many projects have stalled or are no longer feasible.

The HTC-GO legislation temporarily increases the rehabilitation credit (IRC § 47) to address projects impacted by the pandemic. 

  • This provision increases the HTC percentage from 20% to 30% for 2020 through 2024. 

  • The credit percentage is phased down to 26% in 2025, 23% in 2026, and returns to 20% in 2027 and thereafter. 

Permanent Provisions

The following provisions would make important changes to the HTC to encourage more building reuse and redevelopment nationwide and would be particularly impactful for small, midsize, and rural communities. These provisions would not only make the credit easier to use and more historic properties eligible, but it would also enhance the value of the HTC and make the credit easier to use to create affordable housing. 

  • Increases the credit from 20% to 30% for projects with less than $2.5 million in qualified rehabilitation expenses, making it easier to complete small rehabilitation projects. 

  • Lowers the substantial rehabilitation threshold, making more buildings eligible to use the HTC.

  • Eliminates the requirement that the value of the HTC must be deducted from a building’s basis (property’s value for tax purposes), increasing the value of the HTC and making it easier to pair with the federal Low-Income Housing Tax Credit.

  • Makes the HTC easier to use by nonprofits for community health centers, local arts centers, affordable housing, homeless services, and others by eliminating IRS restrictions that make it challenging to partner with developers.

To get a fact sheet about HTC and HTC-GO, visit the Preservation Leadership Forum's Resource Library

Trust News: SHPO Historic Tax Credits Workshop

SHPO.jpg

On March 26, the Wisconsin State Historic Preservation Office held a virtual workshop for Historic Tax Credits. The following announced were issued during the event:

  • 2021 WAHPC Virtual Spring Conference will be held virtually via Zoom April 23-24. Registration and full agenda on the WAHPC website

  • The US Congress is considering a temporary increase in the federal tax credit from 20% to 30%

  • A new museum for the Wisconsin Historical Society is moving forward

Liz Petrella from the National Park Service presented information about preparing a successful Federal Historic Tax Credit Application, emphasizing that, for now, all documents must be submitted as hard copies in duplicate. However, the NPS is planning to transition to electronic submissions in the future. The National Archives will not be accepting hard copy submissions after December 31, 2022.

Marc Zettler, also a Wisconsin Trust for Historic Preservation Board Member, gave a detailed presentation on how to properly conduct a window survey for a historic property, including a brief history of window types and glazing in the United States, how to evaluate existing conditions, the importance of photographic documentation, and how to consider repairs versus replacement within the Secretary of Interior standards.

The Trust works in tandem with the Wisconsin State Historic Preservation Office (SHPO) and supports their efforts and events like this workshop. With a vast array of resources and supporting personnel, the SHPO is considered be the primary resource for preservation efforts in the state. Visit the SHPO online for more details.

The Annual Report on the Federal Historic Preservation Tax Incentives Program is here!

In March, the National Park Service released the Annual Report for Fiscal Year 2020 summarizing the year’s activity across the Federal Historic Preservation Tax Incentives Program. The 20% Federal tax credit, coupled with Wisconsin’s 20% State historic tax credit, helps property owners rehabilitate historic buildings.

Governor’s Mansion Inn and Café. Madison, WIPhoto: David Waugh

Governor’s Mansion Inn and Café. Madison, WI

Photo: David Waugh

The report includes a summary of select projects across the nation, including a showcase of the revitalized Governor’s Mansion Inn and Café in Madison, Wisconsin.

According to the report, Wisconsin approved 34 new projects in 2020 (based on approved Part 1 applications) and 22 project completions worth over $220 million in Federal rehabilitation tax credits. Wisconsin is 13th in the nation in the value of tax credits since 2016, an impressive standing when considering the size of our state. In addition to preserving historic places, preservation generates jobs and economic activity throughout Wisconsin.

Download the report below to read the state-by-state project activity summary highlighting estimated qualified rehabilitation expenditures and five year cumulative totals..

The Federal Historic Preservation Tax Incentives Program, administered by the National Park Service in partnership with the State Historic Preservation Offices, is the nation’s most effective program to promote historic preservation and community revitalization through historic rehabilitation.