|North Carolina Mills Tax Credit|
The North Carolina “mills bill,” prompted by the closure of many of the state's textile, tobacco and furniture plants , provides terrific incentives for restoring and reusing large vacant industrial, agricultural, and utilities buildings. State tax credits are available for the rehabilitation of income- and non-income-producing historic mill properties.
The mill rehabilitation tax credit measures provide up to a a 40% state tax credit for the “certified rehabilitation” of income-producing historic structures, depending on the development tier of the county in which the structure is located. This may be combined with the 20% federal investment tax credit. The state mill rehabilitation tax credit is available in lieu of (as opposed to in addition to) the state historic rehabilitation tax credit.
An eligible site for this program must fulfill several conditions:
An owner must obtain the “eligibility certification” from the State Historic Preservation Officer after the rehabilitation work is completed certifying that the applicable facility comprises an “eligible site” and that the rehabilitation is a “certified rehabilitation.”
Taxpayers should consult a professional tax advisor, the North Carolina Department of Revenue, or the Internal Revenue Service for help in determining the tax and other financial implications of any matter discussed here.