Preservation-focused tax incentive programs exist at the federal, state, and local levels. In general, they counter private and public land-use policies favoring demolition and new construction, while providing financial benefits to building owners who might otherwise feel burdened by preservation projects.
The historic rehabilitation tax credit is the nation's largest federal incentive promoting urban and rural revitalization through private investment in reusing historic buildings. The credit allows the owner of a certified historic structure to receive a federal income tax credit equal to 20% of the amount spent on qualified rehabilitation costs. There is also a 10% credit for older, non-historic buildings. Since it was enacted in 1976, the credit has been widely used as an effective tool for transforming vacant and underutilized buildings into safe, decent, and – in many cases – affordable places to live and do business. (NTHP)
The Commonwealth of Virginia also has a historic rehabilitation tax credit program that creates a state income tax credit up to 25% of qualified rehabilitation expenditures (QREs) on both owner-occupied and income-producing properties.
HistoryTech has provided Part 1 (Evaluation of Significance) services to a number of projects using tax credits, including historic homes, schools, industrial buildings, and institutions. If a building is not listed in the National Register of Historic Places, either individually or as a contributing part of a district, a successful nomination to the NRHP will need to be made in order to satisfy Part 1 of the Federal Rehabilitation Tax Credit application.
Our team members have also provided services relating to Parts 2 (Description of Rehabilitation) and 3 (Request for Certification of Completed Work). We are able and qualified to interpret the Secretary of the Interior's Standards for Rehabilitation as well as the expectations and procedures of the Virginia Department of Historic Resources and National Park Service in order to bring a project to successful completion.
From the determination of eligibility, to the development of the scope of work and through the construction phase, HistoryTech is able to competently manage all or part of the historic rehab tax credit process. We are available to work directly for the property owner or developer, or may be sub-contracted by the architect, attorney, accountant, contractor, or other firm managing the project.
Our team members have worked on more than a dozen tax credit projects in Virginia, including:
Resources for more information on historic rehabilitation tax credits:
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Mailing Address: Post Office Box 75, Lynchburg, Virginia 24505
Office Address: 311 Rivermont Avenue, Lynchburg, Virginia 24504
