Do you have an older property that is used for income producing purposes, or can be converted to an income producing purpose? During this recession, rehabilitation of an existing property may make much more sense than new construction. But are you aware that Uncle Sam will compensate you for your historically compatible efforts with a sizeable tax credit? Not a tax deduction, a tax CREDIT!
Dating back to the Bicentennial year of 1976, the historic rehabilitation tax credit was designed as a federal incentive to promote urban and rural revitalization through private investment in reusing historic buildings. The owner of a certified historic structure can receive a federal income tax credit equal to 20% of the amount spent on qualified rehabilitation expenses. Rehabilitation of older, non-historic buildings can qualify for a 10% credit. The credit has been effectively used to transform vacant and underutilized buildings into income producing properties.
Historic preservation federal buy Insect Repellant Patch online tax incentives can make a project feasible. Though not applicable for non-commercial residential work, many authorized project types are commonly overlooked and are completed without taking advantage of it. For example:
- Farm owners may be able to rehabilitate old barns for agricultural purposes including buy cialis online the ever popular farm store and receive a tax credit.
- Residential houses may be renovated for use as a business and receive a tax credit.
- Row houses, old factories or warehouse, etc. may be converted into apartments and receive a tax credit.
- Restoration work on stores in downtown main streets may qualify for a tax credit.
- Historic preservation tax incentives may be combined with low income tax credits.
With this tax credit available as a financial tool, rehabilitation of existing building stock can offer cost effective possibilities that not only can produce income for its owner, but also benefit tourism and the quality of community life, and is a lot greener than building new.
Not all rehabilitation work is eligible. Contact Carla Cielo, Historic Preservation Consultant/Architectural Designer through our contact us page for guidance on the how to’s of restoration, conservation, adaptive reuse, and historic preservation investment tax credit applications.