Monday, November 26, 2012

Historic Preservation Tax Credits


HISTORIC PRESERVATION TAX CREDITS  are offered by the Federal Government and most State jurisdictions as a tax incentive to promote the preservation of qualified Historic properties. 
In Texas, a property must be listed on the National Register of Historic Places (NRHP).  The NRHP maintains the register of Historic properties and if an Income producing property qualities for this title it can apply for Tax Credits to be used for its renovation and preservation.  The City of Dallas requirements are a little different, a property must be designated a City of Dallas Landmark or be a contributing property within a Landmark district to get these credits. 


The Tax credits  are to be used on income producing properties, single family homes are not covered.  The IRS audits projects to insure the credits are not used for acquisition or related costs. Qualified expenses are structural repairs, heating and air conditioning replacement, plumbing, roof work, painting, and electrical.
Several different government  regulations exist to govern the use of the HISTORIC PRESERVATION TAX CREDIT





Some states that tax income are also offering addition state tax credits tax to encourage the preservation and rehabilitation of older neighborhoods.  This map shows which states offer additional state tax credits along with the federal credit. Research has shown that in states that tax income producing properties, the additional state tax credit has doubled the use of the Historic preservation credit. Texas as you can see on this map does not have state income taxes.







http://www.nps.gov/tps/
www.preservationnation.org


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