The HTC for franchise tax purposes is effective on January 1, 2015 and may be claimed on eligible costs and expenses (incurred before and after September 1, 2013) associated with the certified rehabilitation of a certified historic structure
that is placed in service on or after September 1, 2013.
Conservation purposes under IRC [section] 170(h)(4)(A) are (1) preserving land for outdoor recreational use by, or education of, the general public; (2) protecting relatively natural habitats of fish, wildlife or plants; (3) preserving open space (including farmland or forest space) for scenic enjoyment of the general public or under a governmental conservation policy yielding significant public benefit; and (4) preserving a historically important land area or a certified historic structure
Preservation of historically important land or a certified historic structure
170(h) (4)(A)(iv), the "conservation purpose" is defined as preserving an historically important land area or certified historic structure
The Federal Rehabilitation Tax Credit Program allows a 20-percent deduction in income tax of the amount spent to rehabilitate a certified historic structure
If the donor owns a certified historic structure
, as defined in current law, there will be no deduction for the contribution of a facade easement if the property is or recently was used as a personal residence of the donor or a family member.
A taxpayer may be eligible for a credit for eligible expenses incurred in the rehabilitation of a certified historic structure
A certified historic structure
is any building that is 1) listed in the National Register of Historic Places, or 2) located in a registered historic district and is certified by the Secretary of the Interior as being of historic significance to the district.
According to the court, the easements preserved a certified historic structure
and were granted in perpetuity; however, the court, based on expert testimony, reduced the amounts of the deductions.
Preserves a historically important land area or a certified historic structure
(the historic preservation requirement); see Sec.
Facade preservation easements permanently prevent demolition, neglect and insensitive alterations to the exterior facade of a certified historic structure
280B provided that in the case of the demolition of a certified historic structure
, no deduction would be allowed for any amount expended for the demolition or any loss sustained on account of the demolition.