Historic Tax Credits

[Thomas Fortune]

Has anyone gone through the process of applying for the tax credits associated with renovating in a historic district? Question I have:

1) How difficult was it to renovate to the historic architectural standards?

2) Did you receive the entire tax credit you expected? (In VA, eligible properties can get 20% state credit and 25% federal credit)

3) How much longer did the renovation take compared to a similar non-historic renovation? 

[Bob Obear]

I have completed 8 Preservation Tax Credit deals to date and have applications pending on a 9th and 10th deal.   In Massachusetts there is a 20% credit for all QRE ( Qualified Rehab Expenses)  and 20% available through a second application on the federal level with the National Park Service.   Properties need to be in a historic district or have stand alone significant importance to be added to the National Register of Historic Places.   The program has specific guidelines and rehab standards that must be followed and a consultant is typically required to prepare the applications and oversee the work.   The credit can be brokered out for sale to investors to help offset the rehab costs of the projects.