Historic Tax Credit Programs
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1 Historic Tax Credit Programs
2 PRESERVATION TAX CREDITS FOR INCOME-PRODUCING PROPERTIES 20% Federal Commercial Rehabilitation Tax Credit + 20% NYS Commercial Rehabilitation Tax Credit = 40% Investment Tax Credit for Historic Commercial Properties
3 PRESERVATION PARTNERSHIP PROGRAM For commercia, i dustria, agricu tura or re ta reside tia properties Tax credit is a do ar-for-do ar reductio i state a d federa tax iabi ity Si g e revie process for federa a d state credits
4 Addressing the White Elephant The Warehouse Lofts, Buffalo
5 PARKVIEW PLACE Brasee s Department Store Main Street, Oneonta
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16 WHAT BUILDINGS QUALIFY? Listed I dividua y o the State or Natio a Register of Historic P aces Listed i a State or Natio a Register Historic District Located i a Loca Historic District hich has bee certified by the Natio a Park Service I dividua Bui di gs & Historic Districts that are e igib e for the registers or i the Process of Listi g
17 Regional National Register Listed Downtown Historic Districts (HDs) Utica - Lower Genesee Street HD Oneonta - Downtown and Walnut Street HDs Watertown - Public Square HD Cooperstown Glimmerglass HD Little Falls HD, Canajoharie HD, Fort Plain HD. Sharon Springs HD Larger Metro Areas with multiple downtown HDs: Albany, Schenectady, Troy, Syracuse, Ithaca, Saratoga Springs
18 SUBSTANTIAL REHABILITATION Value of the Property minus Value of the Land minus Depreciation plus Capital Improvements Adjusted Basis
19 NEW YORK STATE COMMERCIAL REHABILITATION TAX CREDIT PROGRAM ELIGIBILITY Project qua ifies for the federa credit Property is ocated i e igib e ce sus tract App ica t is required to pay state fees State credit app ies to rehabi itatio costs up to $5 mi io ( o cap o federa credit)
20 COMMERCIAL HISTORIC REHABILITATION TAX PROJECT CHECKLIST Are you orki g ith a bui di g that is isted i dividua y or ocated i a isted historic district? Or, is the bui di g e igib e for isti g or i the process of isti g? Does the project pass the substa tia rehabi itatio test? Is your project ocated i a e igib e ce sus tract? QUICK TIPS CONTACT THE SHPO EARLY - BEFORE WORK BEGINS If your project is comp ex, co su t experts to assist ith docume tatio, desig, a d fi a cia p a i g
21 APPLICATION - PART 1: SIGNIFICANCE Bui di gs i historic districts: Provide photos, maps, a brief descriptio of the bui di g, a d a brief summary of the building s history I dividua y isted bui di gs: skip to Part 2 Buildings to be listed by project s completion: Supp y SHPO ith a draft registers omi atio, i c udi g photos & maps
22 APPLICATION - PART 2: PROPOSED WORK NARRATIVE: Describe existi g co ditio s, i c udi g major bui di g features SUPPORTING DOCUMENTATION: Photographs to docume t ALL areas of the property F oor p a s a d e evatio dra i gs shou d ref ect curre t co ditio s a d proposed ork I c ude historic photographs if avai ab e
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24 PRESERVE HISTORIC MATERIAL Repair rather than replace deteriorated historic features If deterioration is so severe that replacement is necessary, the new feature should match the old in design, color, texture, overall visual quality, and materials
25 PRESERVE DISTINCTIVE FEATURES Preserve a property s historic character by focusing on specific elements, such as distinctive details, methods of construction, and examples of craftsmanship
26 PRESERVE HISTORIC FLOOR PLANS The i terior orga izatio of a bui di g, its seque ces of spaces, a d circu atio patter s, is importa t i co veyi g its historic co text a d deve opme t
27 PRESERVE IMPORTANT INTERIOR SPACES Pub ic assemb y spaces ca be the most sig ifica t i terior spaces of certai bui di g types
28 WINDOWS REPAIR OR REPLACE Windows come in all shapes, sizes, and types, and are some of the most important character defining features on historic buildings
29 PRESERVATION & ENERGY EFFICIENCY As o g as a proposed measure does ot dimi ish the historic character of a bui di g or e da ger historic materia s, the it i meet the Sta dards Historic bui di gs ere designed and built green PASSIVE SOLAR DAYLIGHTING NATURAL VENTILATION
30 CODES & REGULATORY REQUIREMENTS Co su tatio ith code officia s, SHPO staff, a d the Natio a Park Service i the ear y stages of the p a i g process ca e sure that rehabi itatio projects achieve appropriate so utio s that satisfy both the Code a d the Sta dards
31 MORE KEYS TO A SUCCESSFUL PROJECT Identify the character-defining elements of the building to your architect and/or contractor Complete work as approved or submit project amendments for any changes Keep the Standards in mind whenever changes are made after Part 2 approval and refer to the Illustrated Guidelines or Interpreting the Standards Bulletins for guidance For large or complicated projects, hire an experienced team architect, preservation consultant, accountant, attorney, banker and ensure good team communication
32 PART 3 -REQUEST FOR CERTIFICATION OF COMPLETED WORK Owner submits completed Part 3 form along with photographs of completed work The project must be completed at this point; for example, interior spaces must be ready for use Final approval issued by the National Park Service for certified historic properties where completed work meets the Standards for Rehabilitation
33 POTENTIAL PITFALLS Proceeding with work before Part 2 is approved Not notifying SHPO of project changes Assuming local review/approval equals certification of rehabilitation for the federal/state preservation tax credits
34 LEADING CAUSES OF DENIALS Insufficient pre-rehabilitation photographic documentation Completing work that does not meet the Standards before contacting the SHPO or beginning the application process Proposed use is too intense for building and site Substantial interior demolition; proposed removals not supported by conditions or floor plan
35 NYS 20% HOMEOWNER TAX CREDIT Also a 3 part application No federal review You must own and live in the house Total project cost must exceed $5,000 At least 5% of the project s expenditures must be for the exterior of the home Work needs to be approved by the Division for Historic Preservation before you begin Property must be located in an eligible census tract Credit refundable for eligible incomes
36 Division for Historic Preservation Peebles Island State Park PO Box 189 Waterford, NY (518)
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