residential tax credits for historic restoration, staunton, va - carter green

8/9/2019 Residential Tax Credits for Historic Restoration, Staunton, VA - Carter Green

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Financial Incentives in Historic Districts

Historic Rehabilitation Tax Credits


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State credit = 25% ofqualifying expenses

Federal credit = 20%

of qualifying expenses

Information in thispresentation will

concentrate on theState program.


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Federal Credit appliesonly to income-producing properties.

State credit alsoapplies to owner-

occupied buildingssuch as residences.


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To qualify, a buildingmust be individuallylisted (or eligible for

listing) on StateLandmarks Register orbe a contributing

building to a historicdistrict on the StateLandmarks Register


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Staunton has 6 Nationaland State RegisterHistoric Districts

Beverley

Gospel Hill

Newtown

Stuart Addition The Wharf

Western State


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Since 2000, Staunton has seenapproximately $50 million total investmentin historic tax credit projects ($12.5M instate credits).

Mostly large projects with combinedfederal/state credits.

Few residential projects (despite easierregulations in the state program).


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Qualifying expenses:Rehabilitation workproperly charged to capitalaccount but not including

additions and most sitework. Qualifying expensesconsist of rehabilitationrelated hard costs(including new buildingsystems) and soft costs

such as professional feesand construction periodinterest.


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Minimum investment:At least 25% of theassessed value for

owner-occupiedbuildings and at least50% of the assessedvalue for all other

eligible structures or$5,000 whichever isgreater


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Expenses can beclaimed in the year therehabilitation iscompleted and carriedforward for 10 years.


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Work must conform tothe Secretary ofInteriors Standards for

RehabilitationRetain character-defining features.

Window replacement,

masonry repairs,additions, interioralterations.


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Secretary of Interiors Standards for Rehabilitation

1. A property shall be used for its historic purpose or be placed in a new use that requires minimal change to the defining characteristicsof the building and its site and environment.

2. The historic character of a property shall be retained and preserved. The removal of historic materials or alteration of features andspaces that characterize a property shall be avoided.

3. Each property shall be recognized as a physical record of its time, place, and use. Changes that create a false sense of historicaldevelopment, such as adding conjectural features or architectural elements from other buildings, shall not be undertaken.

4. Most properties change over time; those changes that have acquired historic significance in their own right shall be retained andpreserved.

5. Distinctive features, finishes, and construction techniques or examples of craftsmanship that characterize a property shall bepreserved.

6. Deteriorated historic features shall be repaired rather than replaced. Where the severity of deterioration requires replacement of adistinctive feature, the new feature shall match the old in design, color, texture, and other visual qualities and, where possible, materials.Replacement of missing features shall be substantiated by documentary, physical, or pictorial evidence.

7. Chemical or physical treatments, such as sandblasting, that cause damage to historic materials shall not be used. The surfacecleaning of structures, if appropriate, shall be undertaken using the gentlest means possible.

8. Significant archeological resources affected by a project shall be protected and preserved. If such resources must be disturbed,mitigation measures shall be undertaken.

9. New additions, exterior alterations, or related new construction shall not destroy historic materials that characterize the property. Thenew work shall be differentiated from the old and shall be compatible with the massing, size, scale, and architectural features to protectthe historic integrity of the property and its environment.

10. New additions and adjacent or related new construction shall be undertaken in such a manner that if removed in the future, theessential form and integrity of the historic property and its environment would be unimpaired.


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Three-part application reviewed by VDHR:

Part 1 used to determine if building iscontributing

Part 2 existing conditions photographs,description of proposed work and impact onhistoric features

Part 3 shows completed work

30 day review period (60 for state/federal)

Pass/fail no partial credit!


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Sample Project:

Assessed value = $200,000

Qualifying expenses = $60,000( more than 25% of assessed value)

Amount of state credit = $15,000

(25% of qualifying expenses)


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For more informationvisit the VirginiaDepartment of HistoricResources website:

http://www.dhr.virginia.gov/tax_credits/tax_credit.htm

residential tax credits for historic restoration, staunton, va - carter green

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