It's been a long, arduous climb, but after 15 years preservationists and their proponents appear poised to reach the summit of their efforts for a state historic preservation tax credit before the General Assembly breaks for the summer.

The Senate passed the Historic Preservation Incentive Act, SB 1150, unanimously on April 2, 2012. It's now awaiting action in the House Finance Committee, from where the bill is expected to go to the floor for a vote for approval.

"We are cautiously optimistic that we can get this done this time," said Caroline Boyce, executive director of AIA Pennsylvania. "There has truly been bipartisan support for getting it done."

Enactment of the bill would make Pennsylvania the 31st state in the country to establish a program that means not only an incentive to preserve historic buildings - for which the Keystone State has a significant number - but also jobs.

"Just the program itself is a huge economic development generator," said Melinda Crawford, executive director of Preservation Pennsylvania.

The legislation, sponsored by state Sen. Lloyd Smucker (R-Lancaster), would provide a 25 percent credit against state income tax for developers of projects that involve the rehabilitation of commercial buildings, including those used as rental housing. They must be located in historic districts listed on the National Register of Historic Places or in locally designated historic districts.

"This is really a program about every building you see downtown - a manufacturing plant that stands vacant, an old school - this is for those everyday buildings you see," Crawford said.

Moreover, developers can use this program along with the 20 percent Federal Historic Preservation Tax Incentive program. By leveraging both state and federal tax credits, proponents believe more investment will be lured to Pennsylvania.

At the moment, it's the 30 states with tax credit programs that are winning more investment, Crawford said. For years, she said, developers have told her that to make projects involving historic buildings work they need a state tax credit, too.

John Gallery, executive director of Preservation Alliance for Greater Philadelphia, said the federal tax credit alone "has been very significant in getting historic buildings in Philadelphia restored."

Projects ranging from downtown Philadelphia hotels to low-income housing to commercial buildings, totaling $1.5 billion in investments, have used the federal tax credit. Gallery said. "It's a huge economic development financing tool," he said.

According to a recent study, adding the state tax credit program would induce an additional $55 million to $110 million in historic preservation projects. It would conservatively bring an additional $130 million to $270 million economic impact each year, creating 1,200 to 2,300 jobs and generating $3 million to $6 million in tax revenues.

Philadelphia could have had significantly more projects had the state also offered a tax credit, he said. "Pennsylvania just hasn't been competitive with national firms seeking investments."

However, with the historic tax credit the legislature is expected to approve and Gov. Tom Corbett is expected to sign, "We will see deals that just haven't been feasible for people to do the last few years," Gallery said.

The legislation will provide no more than $10 million in tax credits in any year, and no single project can claim more than $500,000 in any one year.

Despite that times are tough economically and that the historic tax credit program is small, the development it generates will bring in more jobs and investments that ultimately will not be costly to the state, AIA's Boyce said. "This is an opportunity to demonstrate that this kind of program can work," she said.

As an architect, Wendy Tippetts, AIA of Tippetts, Weaver & Architects in Lancaster, does a significant amount of historic preservation work. She said the historic tax credit is, for developers, a determining factor in whether to do a project in Pennsylvania.

Rents here are lower than in competing states because the cost of living and price of real estate is relatively low. Therefore, what the market allows them to charge in rent does not meet their investment costs.

"It's very hard to get the numbers to work for developers," said Tippetts, vice president of AIA's Central Pennsylvania Chapter. "Every little bit they can get to help them reduce their costs is helpful."

Smucker, the bill's sponsor, believes the historic tax credit will have a significant impact on urban areas, particularly on 3rd class cities and boroughs by providing incentives for re-using historic structures and rebuilding eroding tax bases.

"It's one small piece, but should help development in those cities," he said, noting rural areas, too, should benefit from the tax credit by reducing demand for developing farmland. "That will reduce the pressure on farmland."

Another feature of the bill is its requirement for equitable geographic distribution, which means the tax credits will be spread across the Commonwealth and not solely distributed in Philadelphia and Pittsburgh.

Finally, the state tax credit program would safeguard the Commonwealth's unique historic assets that are estimated to draw 32 million visitors annually, spending $1 billion, creating a total economic impact of $2.9 billion, providing for 37,000 jobs and generating $90 million in state tax revenues.