Virginia allows developers to claim credits of 25 percent of eligible expenses on renovations of certified historic structures.

Combined with a federal historic tax credit of 20 percent, developers can claim total credits of 45 percent of eligible expenses. They can use the credits against their own tax liabilities or syndicate the credits for investors.

The legislative subcommittee is considering whether the state should scale back the program, perhaps by placing caps on the total amount of historic tax credits made available, or reducing the amount available per project.

Its scrutiny of the program comes as the state faces a nearly $1.5 billion revenue shortfall in its two-year budget.

“It’s a sobering picture for us to contemplate as we look forward,” Del. R. Lee Ware Jr., R-Powhatan, the subcommittee’s chairman, said during the meeting at the General Assembly Building in Richmond. “This is part of what we have to balance as we go forward.”

Other organizations that spoke in favor of maintaining the historic tax credits included Preservation Virginia, the Virginia chapter of the American Institute of Architects, the Associated General Contractors of Virginia and the Virginia First Cities Coalition.