By either rehabilitating directly or investing in the rehabilitation of eligible buildings, taxpayers can take advantage of one or two tax credits.

  1. Preservation Tax Credit
  2. Historic Tax Incentives

The federal tax law offers an effective incentive to taxpayers who contribute to the preservation of our nation’s old and historic buildings. By rehabilitating directly or investing in the rehabilitation of eligible buildings, taxpayers can take advantage of one of two tax credits.

The rehabilitation credit is available for historic and non-historic buildings used in a trade or business or held for the production of income. The federal income tax credit is equal to 20% of the cost of rehabilitating historic buildings or 10% of the cost of rehabilitating non-historic buildings constructed before 1936. These credits provide a dollar-for-dollar reduction of income tax owed. Buildings eligible for the 20% rehabilitation credit include those used for rental residential as well as non-residential purposes. Buildings eligible for the 10% rehabilitation credit must be non-residential, commercial, and industrial buildings.

ETS can help you reap the tax benefits of rehabilitation and preservation projects as well as all related incentives and processes.

Historic Preservation Federal Income Tax Credit Applications:

Historic properties listed in the National Register of Historic Places may be eligible for the 20% Federal Income Tax Credit. ETS prepares the three-part application and advises property owners as to how to meet these requirements and successfully obtain the credits. For properties eligible for, but not yet listed in the National Register, ETS will prepare the nomination proposal needed.

New Markets Tax Credits:

New Markets Tax Credits can sometimes be combined with Historic Preservation Tax Credits when historic properties are located in qualified census tracts. ETS assists developers and property owners in determining if properties might qualify for both of these programs and facilitates the twinning of these programs. Read more on New Market Tax Credits.

Historic Preservation Ad Valorem Tax Exemption Applications:

Certain historic properties listed in the National Register of Historic Places and/or designated as historic properties by local governments may be eligible for up to a ten-year exemption from a portion of local property taxes in communities in Florida who have adopted this exemption program. Similar tax exemption programs are available in other states. ETS prepares the application necessary for property owners to apply for the exemption.

Historic Preservation Design Review:

Where properties are located in city or county historic districts or designated as local historic landmarks, they typically are subject to design review by an architectural review board or commission. ETS represents property owners before these boards, assisting them and sometimes their architects with necessary board approvals, while helping owners meet their design goals. Some municipal historic districts provide financial incentives, such as a property tax exemption, for the appropriate rehabilitation of historic properties. ETS assists property owners in learning about these incentives and helping clients obtain them.

Additional Historic Preservation Services Include:

  • National Register Proposal Preparation
  • Cultural Resources Survey
  • Grant Writing
  • Written & Illustrated Design Guidelines
  • Historic Ordinance Consultation

Contact us at 561-253-6640 or email info@engineeredtaxservices.com