Buildings that are "
certified historic structures" are precluded from taking both the 10 percent non-historic structure tax credit and the 20 percent
certified historic structure credit.
For
certified historic structures, a tax credit of 20% of qualified expenditures is allowed.
A
certified historic structure means a building is listed in the National Register of Historic Places or located in a registered historic district and certified by the Park Service as contributing to the historic significance of that district.
A conservation purpose must be protected in perpetuity and can include the preservation of a historically important land area or a
certified historic structure (section 170(h)(4)(A)(iv)).
Facade preservation easements permanently prevent demolition, neglect and insensitive alterations to the exterior facade of a
certified historic structure.
1) A
certified historic structure or historically important land area; and
A building must be a
certified historic structure listed in the state's register or the National Register individually, or as a building that stands in a designated local historic district;
Owners of small historic tax credit projects are typically unable to utilize the 20% federal rehabilitation tax credit, which equals 20% of the amount spent on a certified rehabilitation of a
certified historic structure.
For a
certified historic structure or a non-historic, non-residential building constructed prior to 1936 that is undergoing a substantial rehabilitation, the developer may be entitled to receive historic rehabilitation tax credits from the federal government representing up to 20 percent of rehabilitation costs.
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.
The Senate passed legislation would keep only the 20 percent credit for
certified historic structures (on the NPS list), which would have to be taken ratably over a five-year period.
In 1981, the Economic Recovery Act signed into law by President Ronald Reagan enhanced the program to include a 25 percent tax credit for certified rehabilitations of
certified historic structures, which led to an increase in the number of rehabilitation projects across the country.
