Tuesday, September 20, 2011

Finding Tax Credits for Historic Buildings

Fixing up and preserving buildings of historical significance, either because of events that happened in them, or because of their architecture or the historic significance of the area in which they exist, can be aided by federal and/or state tax credits.  But how do you know if your building qualifies?  The first place to go is your local or state preservation agency.  They can tell you how to research your building's origin and establish its status as a historically significant building, or if it's part of a historic district.

 The federal government allows tax credits ranging  from 10% to 20% of the cost of the rehabilitation.  However, this is only for commercial buildings, not owner-occupied homes.  The National Trust for Historic Preservation put together a guide to determine if your property would qualify, and takes you step by step through the process.  The Department of the Interior has guidelines which show what sorts of rehabilitation work is eligible for the federal credit.

Some 30 states also allow for tax credits for the rehabbing of historic buildings.  Some of them allow their use on private homes, and some have caps that limit their usage.  The National Trust for Historic Preservation has the latest rundowns on what each state allows, and web links where you can get more information.

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