Tax Credit Restorations can be utilized by Government and NGO entities. It's just more complicated!

Historic Tax Credit FAQs

Questions regarding an Historic Tax Credit Restoration, Rehab, or Renovation Project:

Below are some of the more common FAQs with Historic Tax Credit projects

• Can I claim a credit for a project which is already done? No.
• Can I spread the project over time? Yes, up to 5 years.
• Can I utilize the credits over multiple years? Yes, but you need to consult a tax specialist.
• Can I claim credits for my home. Federal no, Ohio NO. (Updated 2016)
• Can a public entity gain tax credits? It's possible, but complex, involving for-profit LLC creation.
• Can a non-profit utilize tax credits? Yes, by "assigning" the tax credits to a for-profit entity.
• Is it possible to do several structures as one project? Federal, yes if they are "functionally related". State-yes.
• Do multiple structures need to be contiguous? No, but there are some limits.
• Can Historic Tax Credits be combined with other incentives and rebates? Yes
• Do historic standards conflict with modern building codes? No, there are exemptions and accomodations for all modern code requirements
• Does historic restoration prohibit modern uses and improvements? No, it only regulates how you deploy them
• Does Historic Rehabilitation cost more than other remodeling options? Not necessarily. It can be more cost effective than demolition and new construction.
• Does Historic Rehabilitation prohibit modern energy effecient upgrades in heating and AC? No, not at all.
• If a building has been altered, is it still possible to get tax credits for restoration? Yes, if suffecient integrity remains.
• Does a more modern addition qualify for restoration in conjunction with an older building. Possibly.
• Does a Rehabilitation require the removal of later alterations? No.
• Can a moved structure qualify for credits? The Secretary of the Interior has granted some approvals for moved structure. B rainwave has acheived prior-approval for moving a structure while remaining on the National Register.
• Is the application process expensive? Not really, and the HTC development expense is also a QRE.
  Do tax credit projects take longer to complete? Not if you are organized. Yes if your pplan is unfocused or incomplete.
  
• Will a tax credit project require re-working of project elements if they dont meet the standards? Not if you specify everything up front.
• Is there an appeal process if there are disagreements? Yes.
• Why dont more people undertake tax credit restorations? They dont know how simple they really are!
• Why dont more architects propose historic restorations? Many Architects often want to make alterations which do not meet preservation standards.

FAQ Links and Resources

These links below will connect you with more detailed information from NPS on the details of Tax Credit use and limitations.

FAQ Part 1
FAQ Part 2
FAQ Part 3
FAQ Part 4

For more information about Historic Tax Credits, please contact us.  (Updated May 2016)