how to treat land/building acquisition

ffasulo

May 02, 2017 19:19

Hi there, I’m calculating the economic impact of an historic rehabilitation tax credits program. one of the non-eligible expenses (which I’m still using for the EI) is land/building acquisition. I know that usually land acquisition is not included when you estimate an economic impact of a construction because considered asset transfer. Is that the same with a building? What happen if the proceedings from the sale are then reinvested?

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IMPLAN Support
May 09, 2017 14:55

Hello Fabrizio, Building acquisition is treated the same as land acquisition - both are asset transfers; there is no production associated with the transaction (outside of some small real estate and/or finance sector service production). Without a change in production, there is no economic impact to estimate using the IMPLAN model. If the sale of the building will result in future investment (such as new construction or equipment purchases), you can measure the impact of that investment so long as the investment is within the study region. Regards, IMPLAN Staff

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