Making History One Building at a Time
At The Chesler Group, we’re happy to serve as a resource to anyone considering the benefits of applying for National Historic Register Status. Even if you choose not to work with us, we can steer you in the right direction to get you started.
Historic Tax Credit Incentives
Owning a registered historic property may qualify you for a 20% federal tax credit on qualified rehabilitation expenditures (QRE). This very valuable credit can attract investment in the real estate, and allow for economic benefits to the project.
- It must be depreciable income property such as commercial, industrial, agricultural, rental residential or have some other business purpose;
- Your rehabilitation must be substantial.
- Your property must be a Certified Structure listed individually in the National Register of Historic Places or must be a contributing structure in a registered district; For buildings that are not listed yet, complete Historic Preservation Certification Application – Part 1;
- Your project must be approved as Certified Rehabilitation; This means the owner must complete Part 2 of the Historic Preservation Application-Description of the Rehabilitation;
- Upon completion of the rehabilitation work, submit Part 3 of the Historic Preservation Certification – Request for Certification of Completed Work. Only projects that meet the Secretary of Interior’s Standards for Rehabilitation will be approved and are eligible for the 20% tax credit;
- The owner must hold the building for 60 months or five years after the rehabilitation – this is
called the recapture period; If you don’t, you may have to pay back the credit.
Top Tips for the Process
- Make sure you apply for the federal rehabilitation tax credit before beginning any construction work. Better to be safe than sorry is true in this case.
- Consult with your State Historic Preservation Office (SHPO) as soon as possible. If you have questions about how to get in touch, we’ll be happy to assist.
- Understand and apply the Secretary of Interior’s Standards for Rehabilitation and the Guidelines for Rehabilitating Historic Buildings as they relate to the scope of your construction. This can be quite challenging and The Chesler Group can help you here too.
- Make sure you alert the SHPO and the National Park Service about any project changes so they can inform you whether or not they may jeopardize your status.