Historic Building Rehab Federal Tax Credits

[Ed Jaroch]

Are there any readers of this forum that have used "Federal Tax Credits for Rehabilitating Historic Buildings". I would interested in hearing what your experience was like. The tax credit sounds interesting, the paperwork sounds intensive and lengthy.

[Dave Holman]

Hi @Ed Jaroch and @Elliot B. + @RaeLena Morrison I'm under contract on a HPTC project now and learning A TON, so I'm not expert but have spoken to more experienced developers and architects. This is a very complex niche. The credits apply to only the Qualified Rehab Expenses (QREs) NOT acquisition or ARV. So if you buy for 100K, have 500K of QRE and the renovated building appraises for 1M, your credits are based on the 500K. My advice thus far is don't get near one of these without bringing on architects, historic consultants, lawyers (gonna be pricey) and accountants who are experts in HPTCs. If anyone reading has more experience, I'd love to connect!