The purpose of the Historic Tax Credit program is to make preservation and adaptive reuse financially feasible. 

Ø      Credits against State and Federal Income taxes owed.

Ø      Federal Historic Tax Credit –

      ·   20% of Qualified Rehabilitation Expenditures – to comply with this program a building must either be eligible to be listed on the National Register of Historic Places or be a contributing building located in a historic district. Buildings renovated under this program must apply with the Secretary of Interiors standards for historic rehabilitation. However, many buildings undergoing fairly significant modifications may still qualify.

      ·   10% Program – Buildings are eligible if they are not listed on the National Register of Historic Places and were built before 1936. Renovation plans under this program do not have to comply with the Secretary of Interior standards.

Ø      State Historic Tax Credit – % of Qualified Rehabilitation Expenditures – numerous states throughout the U.S. now have historic tax credit programs that can be used in conjunction with the federal program.  

Ø      Examples of Qualified Rehabilitation Expenditures: 

o       Building renovation

o       Architect fees

o       Construction interest 

Ø      Examples of Expenditures that do not qualify for the credit: 

o       Site renovation

o       New additions to building

o       Furniture, fixtures, equipment

o       Acquisition 

Ø      Federal Credit and State Credit can be sold to different partners. Brian Wishneff & Associates has a long list of investors that it works with and as a result can ensure the highest pricing for your project.   

Ø      Current pricing for Federal Credits is $.85-$.92 per dollar of credit. 

Ø      Credit are available in the year buildings are placed in service.  Federal credit investor can go back one year and forward 20 years to fully use the credit.  State credit investor has  years to use credit. 

Ø      Depending on the particular facts of you project, some renovations may qualify for both state and federal credits while others may qualify for only for the state credit. 

Ø      Partnerships for the state credit can be dissolved generally around 3 years after construction is completed.  The federal credit investor must remain in a project for at least 5 years after construction.