Historic Tax Credits

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					Historic Tax Credits
Last Updated Friday, 25 September 2009 17:38




“The Hidden Value”

 Valuable income tax incentives are available in North Carolina for the rehabilitation of Certified
Historic Structures. These ownership credits come in two categories; income producing
properties and non- income producing properties. These credits represent a dollar for dollar
reduction in the owner’s tax liability, on an annual basis, relative to the tax credit category. This
reduction in taxes ultimately reduces the purchase price of the property creating a “Hidden
Value” to the owner.
 Income Producing Properties
 One of the Federal Government’s most successful and cost-effective community revitalization
programs, the Historic Preservation Tax Incentives, reward private investment in rehabilitating
historic properties such as offices, rental housing and retail stores, etc.
 Owners of income producing properties that qualify through the Federal and State
Preservation programs qualify for a 20% Federal and 20% State Tax Credits for a total
combined credit of 40%. Tax credit percentage calculations are based on the total qualifying
rehabilitation costs per property.
 Non-Income Producing Properties
 Owners of non-income producing properties, such as residences, that qualify through the
Federal and State Preservation programs qualify for a 30% North Carolina State Tax Credit.
Tax credit percentage calculations are based on the total qualifying rehabilitation costs per
property.

  http://www.nps.gov/history/tax.htm
 (National Park Service – Federal Historic Preservation Tax Incentives)
  http://www.hpo.ncdcr.gov/
 (NC State Historic Preservation Office - Federal and State Historic Preservation Tax Credits)


 

    Kress Plaza Historic Tax Credits


The Kress Plaza project offers both income producing and non-income producing Historic Tax
Credits in its mixed use environment.




Commercial Space: Income Producing Property
 Commercial spaces of 1,800 to 6,342 square feet of street level area and 4,405 square feet of
basement are presently available for renovation within the Kress Plaza. Present (as is) tax
credit allocations for these spaces, not including additional renovation costs are as follows:

       Area                      Federal Tax Credit        NC State Tax Credit        Total Tax Credits




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Historic Tax Credits
Last Updated Friday, 25 September 2009 17:38




    Street Level               $43,996.83              $43.996.83                $87,933.66

    Basement                   $26,260.63              $26,260.63                $52,521.26




 At present unfinished stage of development the total allocated tax credits per area are: Street
level $13.87 per square foot and Basement $11.92 per square foot. All additional (finished)
qualifying renovation expenses will be added to the total qualifying rehabilitation costs and will
increase the total tax credits by the respected percentages.




Residential Condominiums: Non-Income Producing Property
 There are presently two residential condominium suites available for purchase within the
Kress Plaza. Each suite can be purchased for; non-income / owner-occupied residence or
investment / income producing via leasing for residential purposes. Tax credit allocation for
each suite is as follows:

      Purchase Type               Suite                   Federal Tax Credit        NC State Tax Credit


    Investment                 “R”                     $31,257.68                $31,257.68


    Owner-occupied             “R”                       $46,886.53                $46,886.53

    Investment                 “S1”                    $29,694.80                $29,694.80


    Owner-occupied             “S1”                      $44,542.20                $44,542.20




 




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