Engineered Tax Services now offers State and Local Tax Credit and Grant writing services nationwide. Significant IRS regulatory changes in 2018 amplifies the importance of maximizing State and Local Incentives in tandem with federal tax credits and special incentives programs.
State and Local Tax Credit Programs
ETS will identify the potential range of grant and tax benefits for you not only on the federal level, but now on the state, county, and municipal levels; including programs available through private organizations. We develop a comprehensive Benefit Analysis of potential grant-makers, tax credits, and rebate programs, tailored to the individual needs of each specific project. State and Local Incentives are available to help targeted industry growth like manufacturing or affordable housing, real estate development, preservation, restoration, and adaptive re-use, as well as, business and economic development including job creation and new markets. It is notable that many federal programs are available to be layered with similarly qualifying programs on the state, county, and municipal levels.
Historic Tax Credits Continue
The Historic Tax Credit persisted with the support of Congress through the most significant re-drafting of tax codes in over 30 years. The HTC was enacted in 1978, and is administered by the National Park Service in conjunction with the State Historic Preservation Offices; which is determined by the locale of each project. The HTC program encourages private sector investment in the preservation, rehabilitation, and adaptive re-use of historically designated structures. The federal tax credit allows program participants to claim twenty percent of eligible improvement expenses against their federal tax liability. The ten percent credit for non-historic buildings built before 1936 has been phased out. It is important to consult a professional to guide you through the new policies. ETS’ State and Local Incentives department will undertake the application process for you. Our experts guide you through the new regulations and requirements to be able to take advantage of this significant federal tax credit, and help you simultaneously pursue HTCs on the state and local levels. Qualifying expenses include costs related to the repair or replacement of walls, floors, ceilings, tile, windows, doors, HVAC systems, plumbing and electrical fixtures, chimneys, stairs, elevators, fire safety systems, architects’ fees, and other components related to operation or maintenance. To qualify the building must be income producing.
Since the Tax Reform Act of 1976, the Historic Tax Credit has attracted more than $85 billion in private sector capital to the historic districts of cities across America. These funds have enhanced property values by revitalizing communities in need of economic development. Some projects that receive HTCs may meet the criteria of community revitalization; including affordable housing like multifamily rental units.
State And Local Tax Credits At Work
ETS’ latest HTC project involves the overhaul of two commercial buildings into completely updated multi-family rental units, while each building’s ornamented exterior is meticulously preserved. Spearheading historic designation efforts for 1611 and 1700 E Carson Street in the East Carson Street Historic District in Pittsburgh, PA, ETS successfully secured historic designations for both buildings. The project is expected to carry a five million dollar price tag with renovations expected to be completed in late 2019. About twenty percent of the project’s total cost is eligible through the HTC for a grand total of about $400,000 in savings, or salable tax credits.
The Benefits of State and Local Tax Credits
These State and Local Incentives represent a valuable opportunity to recoup a portion of your business and real estate development costs. Businesses large and small across a broad range of industries and locations can take advantage of these benefits. ETS works closely with your team to determine a plan for applying to the most relevant and profitable opportunities. State and Local Incentives revitalize and stabilize communities, create jobs, stimulate the economy, and best of all, help preserve a piece of America.