ALBANY - Despite extensive outreach from elected officials, business groups, housing advocates and preservationists, Governor David Paterson has vetoed legislation that would have improved New York State's Historic Rehabilitation Tax Credit programs.

The measure was approved by the Senate and Assembly in June, and would have extended program benefits to a larger number of municipalities and a wider range of historic residential neighborhoods throughout New York, encouraging higher levels of reinvestment in both commercial and residential historic properties.

The Preservation League engaged a diverse coalition of business and municipal leaders, preservation organizations and environmental groups in advocacy to enhance the tax credit programs first established in 2006.

"As the Legislature clearly acknowledged, the 2006 program set incentive levels too low and too narrowly restricted program availability," said Daniel Mackay, the Preservation League's Director of Public Policy. "Until this program is fixed, it will not see significant use or stimulate significant levels of redevelopment. Mayors and municipal leaders have made it known that an enhanced rehabilitation tax credit is a tool they need in the Empire State's redevelopment toolbox."