Renovating a historic structure can be an expensive and difficult process. Thankfully, several incentives exist to offset the costs and encourage historic restoration, such as the following.
Federal Income tax credit for 20% of the cost of the restoring and improving a historic structure. Applicants may claim the income tax credit for the year a project is completed and after the final approval. In order to receive and keep the full credit, the owner must hold the building for five years after the renovation.
Eligibility: The building/s must be in a historic district, a certified historic structure or registered individually in the National Register. It must meet the National Park Service Standards that a building’s historic features are preserved and that new additions and alterations are compatible with its architectural integrity.
State income tax credit for 20% of the cost of restoring and improving a historic structure. Applicants may claim the credit for the year a project is completed and after the final Part 3 is approved. Income tax credits may be claimed by the owner or may be transferred or sold to another entity.
Eligibility: Building/s must be at least 50 years old and located within the boundaries of a Downtown Development District or a certified Cultural District. Renovation costs must exceed $10,000 in qualified expenses and must be completed according to Secretary of Interior’s Standards for Rehabilitation.
If you’re renovating a property within a cultural, historic, or development district, please contact Webre Consulting before beginning construction to discuss your property’s eligibility.