In June 2024, the Austin History Center Association (AHCA) hosted a Board Happy Hour at Hotel Ella, featuring a special talk by Adam Markwood, a historic tax consultant with Brian Wishneff & Associates. Markwood specializes in leveraging historic tax credits (HTCs) to fund preservation projects—an opportunity that could directly support AHCA’s mission.

 

How Historic Tax Credits Could Benefit AHCA

Historic tax credits are designed to encourage the rehabilitation of historic buildings by providing a dollar-for-dollar reduction in federal tax liability for qualified restoration expenses. Since AHCA is a nonprofit and does not pay federal taxes, the organization cannot use these credits directly. However, through a process called syndication, AHCA could work with a firm to broker future tax credits, securing funding upfront to support preservation projects.

This approach allows AHCA to:

  • Secure funding immediately for rehabilitation efforts, rather than waiting for long-term fundraising efforts to fully cover costs.
  • Leverage private investment from companies that need tax offsets while ensuring the continued preservation of Austin’s historic sites.
  • Support the expansion of the Austin History Center campus, as the Faulk and 1933 buildings combine this year to create a modernized archive and research hub.

 

Who Would Invest in These Credits?

Large companies with significant tax liabilities often purchase historic tax credits because they provide a direct reduction in federal taxes. Austin is home to many major corporations that could be potential investors, including:

  • Samsung – With its growing semiconductor manufacturing presence in Central Texas, Samsung has a substantial tax footprint and could benefit from HTC investments.
  • Tesla – With its Gigafactory headquarters in the region, Tesla is a prime candidate for investing in tax credit opportunities that align with its sustainability and innovation goals.
  • Dell Technologies – A local corporate giant with a longstanding commitment to community initiatives, Dell could leverage historic tax credits while supporting Austin’s history.
  • Tech, finance, and real estate firms – Companies like Google, Apple, JP Morgan Chase, and commercial developers frequently invest in tax credits as part of their financial strategies.

By working with a firm like Brian Wishneff & Associates, AHCA could explore how to package future tax credits into an investment opportunity for these corporations, securing critical funding to preserve and expand Austin’s historical footprint without taking on debt.

A Great Evening of Insight and Community

The event was well attended by AHCA board members and friends of the organization, sparking discussions about how tax credit funding could help bring AHCA’s long-term goals to life. It was a valuable evening of connection, collaboration, and big-picture thinking about how Austin’s past can be preserved for future generations.

AHCA will continue exploring this opportunity as it looks for innovative ways to fund historic preservation, expand the Austin History Center campus, and ensure that Austin’s stories—both well-known and those waiting to be uncovered—are safeguarded for generations to come.