With Tax Credits
The North Carolina legislature adopted a new historic rehabilitation tax credit program, which went into effect January 1, 2016.
Federal and state tax credit programs offer a terrific incentive to taxpayers who rehabilitate historic buildings for their own homes or for income-producing properties.
Income tax incentives for the rehabilitation of historic structures are important tools for historic preservation and economic development in North Carolina.
A federal income tax credit for the rehabilitation of historic structures first appeared in 1976 and today consists of a 20% credit for the qualifying rehabilitation of income-producing historic properties.
North Carolina will now provide a tier-based credit for income-producing projects, with 10-15% of QREs, and the possibility of “bonus credits” in the amount of 5% for projects in a Tier 1 or 2 county, and 5% for a targeted investment.
In addition, the state provides a 15% credit for the rehabilitation of non-income-producing historic properties, including private residences.
For information about the historic rehabilitation tax credit program, prepared by the NC State Historic Preservation Office, click here for income-producing properties or here for non-income-producing properties.
Since 1976, over 2,000 completed “certified rehabilitation” projects have been reviewed by the N.C. State Historic Preservation Office, representing over one billion dollars of investment in historic properties. The spinoff from all this activity includes job creation, downtown and neighborhood revitalization, improved community appearance, and greater community pride. Historic preservation is smart growth, and smart investment.
Information and applications are available from the North Carolina State Historic Preservation Office, an agency of the State of North Carolina.
For copies of tax credit applications and instructions, contact either Tim Simmons (firstname.lastname@example.org), 919-814-6585, or David Christenbury (email@example.com), 919-814-6574, and provide your name, address, and name and location of your project.