Tax Credits for Historic Rehabilitations
~posted 06.11.2009
Do you own, or are you thinking about owning a historic building or residence either individually listed on the National Register of Historic Places or listed as a contributing historic structure within a National Register Historic District? If so, the rehabilitation of that structure could qualify for Federal and North Carolina state tax credits. Tax credits are available to certified rehabilitations, rehabilitations that meet the Secretary of the Interiors Standards for Rehabilitation and are reviewed and approved by the State Historic Preservation Office and the National Park Service (when applicable) for compliance.
Both historic homes and historic commercial buildings qualify for tax credits.
The tax credits are taken as a percentage of the cost of the rehabilitation of the historic structure. Tax credits are not the same as a tax deduction. Instead they are a dollar-for-dollar reduction in the income taxes that you would owe.
-Income producing buildings, such as offices, retail or apartments are eligible for a 20% Federal tax credit and a 20% North Carolina state tax credit.
-Non-income producing buildings, such as private residences, are eligible for a 30% North Carolina state tax credit (no Federal tax credits).
Maurer Architecture can assist you in determining if your property is eligible for tax credits.
Maurer Architecture has extensive experience in both income producing and non-income producing rehabilitation projects. We can first assist you in determining if you property is eligible and then help guide you through the process. We understand the Secretary of the Interiors Standards for Rehabilitation and work closely with the State Historic Preservation Office in the early stages of a project. Some our services include:
-Assist the building owner in defining the scope of work in order to meet the owners needs, while complying with the Standards for Rehabilitation and code requirements.
-Document the historic structure (field measurements, photographs and drafting).
-Provide schematic design drawings for the proposed work as an attachment to the tax credit application.
-Fill out all of the tax credit applications, which include providing a written description and a photograph log of the existing historic structure, written descriptions of the scope of work for each building element (exterior and interior), include the existing and proposed floor plans and exterior elevations (if necessary) and when the work is complete, fill out the final application with photographs of the completed work in order to show the work has been done in compliance with the pre-approved scope of work.
There are tax incentives for the rehabilitation of non-historic commercial buildings too.
If you own a non-historic, non-residential structure that was built prior to 1936, there is also a tax incentive for you. The Federal Government extends a 10% tax credit for the rehabilitation of these structures. For further information on this tax credit and the others discussed above, please refer to the websites below.
Related Links:
North Carolina State Historic Preservation Office Website:
Federal and State Tax Credits
National Park Service Website:
Incentives! A Guide to the Federal Historic Preservation Tax Incentives Program for Income-Producing Properties
National Park Service Website:
Historic Preservation Tax Incentives
This link provides an overview of the Federal tax incentive program, including both the 10% and 20% tax credit programs offered.