Tax Credits To Restore Or Refurbish Historic Buildings

So few people know that tax credits are available at the federal and state level to restore or refurbish historic buildings. If a building is on the National Register of Historic Places, it could qualify for a 20% tax credit. If it is not on the National Register but older than 1936, the structure could still qualify for a 10% tax credit.

Many states have started their own Historic Tax Credit program. In Ohio, buildings on the National Register could qualify for 25% of a rehab project. These are tax CREDITS and not deductions. The credits can be sold like bonds. So non-profits can also utilize these incentives.

So what is the catch? The work must meet certain standards, but if you are receiving this assistance, it only makes sense! The buildings must be income generating. The rehabilitation of a property most also be significant. Most century buildings that people are razing because of the cost to restore them would be significant rehabilitation projects.

The old Home Company department store in Ashland, Ohio was rehabilitated using the federal tax credit.