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ECONOMIC DEVELOPMENT GOALS <br />HISTORIC PRESERVATION INCENTIVES <br />FINDINGS SOLUTIONS <br />4 t <br />1. Federal Rehabilitation Tax Credits have 1. Develop local tax incentives that would <br />been used in San Marcos, but Texas apply to both individual landmarks and <br />Rehabilitation Tax Credit have not. historic districts. <br />2. The majority of designated properties 2 <br />are not eligible for federal and state tax <br />credits because they are residential and <br />non -income -producing. <br />3. There are no local tax incentives for historic <br />preservation. In 2001, the City drafted <br />an ordinance proposing ad valorem tax <br />incentives to encourage the preservation <br />of historic buildings. This ordinance would <br />have exempted any increase in property <br />taxes resulting from qualifying preservation <br />projects for a period of 10 years after <br />project completion. <br />4. In 2019, the HPC issued a recommendation <br />resolution encouraging City Council to <br />consider local incentive programs to <br />support historic preservation in San Marcos. <br />5. No local historic preservation incentives <br />have been adopted as of this plan. <br />6. Inherited historic homes are often at risk of <br />sale, demolition, or loss because heirs face <br />financial burdens and legal barriers that <br />make it difficult to remain in the property. <br />Certified Local Districts (CLDs) are historic <br />districts certified by the Secretary of the <br />Interior as meeting the criteria for listing in <br />the NRHP, but they are not officially listed. <br />With this certification, properties within a <br />district that are contributing can qualify for <br />the same tax incentives as listed properties, <br />including the state rehabilitation tax credit. <br />Consult with the NPS about Certified Local <br />Districts for local districts not in the NRHP, <br />which would allow both income -generating <br />and nonprofit -owned properties to use <br />state historic tax credits. <br />3. Educate residents on the benefits of listing <br />in the NRHP and designation as RTHLs, <br />including eligibility for Texas Preservation <br />Trust Fund grants. <br />4. Consider developing a program that <br />provides more zoning flexibility for owners <br />or developers who agree to retain historic <br />buildings on a property where new <br />development is proposed. <br />5. Explore development of carbon footprint <br />incentives for reusing buildings, such as fee <br />reductions, tax abatements, or expedited <br />permitting for projects that retain and <br />rehabilitate existing structures. <br />6. Explore the feasibility of a Transfer of <br />Development Rights (TDR) program to <br />preserve smaller -scale downtown buildings, <br />commercial corridors, and historic districts <br />in growth areas. <br />7. Consider amending the SMDC to allow for <br />a preservation bonus similar to the City of <br />Austin's HOME Initiative. <br />8. Develop resources for properties that could <br />be relocated as an alternative to demolition, <br />potentially including funding for moving, <br />contacts for movers, and advertising <br />buildings as available for relocation. <br />9. Explore incentives to help descendants <br />retain inherited historic properties, such as <br />tax relief, repair assistance, or legal aid for <br />title clearing, with emphasis on supporting <br />low- and moderate -income families. <br />134 SAN MARCOS HISTORIC PRESERVATION PLAN (2026) <br />