Contact UsDoes the United States have a tax credit program available for renovating older and historic buildings? Are their additional tax credits available at the multi-state levels for the renovation of these older and historic buildings?
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Peter Scalise, SAX LLP
Yes, The United States has a Historic Preservation Tax Incentives Program with tax incentives available at both the federal-level and multi-state levels.
The Historic Preservation Tax Incentives Program, jointly administered by the National Park Service and the State Historic Preservation Offices, is the nation’s most effective Federal program to promote urban and rural revitalization and to encourage private investment in rehabilitating historic buildings. These tax incentives apply explicitly to preserving income-producing historic property and have generated billions of dollars in historic and rehabilitation preservation activity since the program’s commencement in 1976.
There are two categories of preservation tax credits as outlined below:
• Pursuant to I.R.C. § 47(a)(1), the Rehabilitation Tax Credit offers a 10 percent credit available for the rehabilitation of non-historic buildings with an additional requirement that the building must have been originally constructed before 1936; or
• Pursuant to I.R.C. § 47(a)(2), the Historic Tax Credit offers a 20 percent credit available for the rehabilitation of a Certified Historic Structure (e.g., one listed on the National Register of Historic Places or located in a Registered Historic District and determined to be of significance to the Historical District).
These preservation tax incentives can significantly reduce a property owner’s perceived costs for the renovation of an older building and should certainly be considered when planning a renovation project. In addition, it should be duly noted that most states now offer preservation based tax incentives at the state level (e.g., such as ME, NH, VT, MA, RI, CT, NY, PA, DE, MD, WV, VA, NC, SC, GA, FL, MS, LA, AR, MO, IA, MN, WI, IN, KY, MI, OH, ND, KS, OK, CO, NM, UT & MT with several remaining states introducing legislation that would create a similar program in NJ, AL, IL, and TX) which can be utilized in conjunction with the federal-level incentives to further reduce the expenditures of a property owner’s renovation.
For further coverage of this area of the tax law, please consult my published article: http://taxconnections.com/taxblog/reduce-property-owners-expenditures-for-renovation/#.U8qbFZ3D-Uk
Please contact me directly with any further questions and thanks very kindly for submitting your inquiry.
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503 weeks ago
The Historic Preservation Tax Incentives Program, jointly administered by the National Park Service and the State Historic Preservation Offices, is the nation’s most effective Federal program to promote urban and rural revitalization and to encourage private investment in rehabilitating historic buildings. These tax incentives apply explicitly to preserving income-producing historic property and have generated billions of dollars in historic and rehabilitation preservation activity since the program’s commencement in 1976.
There are two categories of preservation tax credits as outlined below:
• Pursuant to I.R.C. § 47(a)(1), the Rehabilitation Tax Credit offers a 10 percent credit available for the rehabilitation of non-historic buildings with an additional requirement that the building must have been originally constructed before 1936; or
• Pursuant to I.R.C. § 47(a)(2), the Historic Tax Credit offers a 20 percent credit available for the rehabilitation of a Certified Historic Structure (e.g., one listed on the National Register of Historic Places or located in a Registered Historic District and determined to be of significance to the Historical District).
These preservation tax incentives can significantly reduce a property owner’s perceived costs for the renovation of an older building and should certainly be considered when planning a renovation project. In addition, it should be duly noted that most states now offer preservation based tax incentives at the state level (e.g., such as ME, NH, VT, MA, RI, CT, NY, PA, DE, MD, WV, VA, NC, SC, GA, FL, MS, LA, AR, MO, IA, MN, WI, IN, KY, MI, OH, ND, KS, OK, CO, NM, UT & MT with several remaining states introducing legislation that would create a similar program in NJ, AL, IL, and TX) which can be utilized in conjunction with the federal-level incentives to further reduce the expenditures of a property owner’s renovation.
For further coverage of this area of the tax law, please consult my published article: http://taxconnections.com/taxblog/reduce-property-owners-expenditures-for-renovation/#.U8qbFZ3D-Uk
Please contact me directly with any further questions and thanks very kindly for submitting your inquiry.