Federal and State Rehabilitation Tax Credits
Please note: For folks completing tax-credit projects, the Part 3 application, “Request for Certification of Completed Work” must be filed within one year of the completion date for the project.
The preservation of historic buildings benefits communities. Historic places connect us to our heritage and enrich the quality of our lives in countless intangible ways, but their preservation also provides demonstrable economic benefits. Through the federal and state Rehabilitation Tax Credit programs, property owners are given substantial incentives for private investment in preservation, resulting in enormous advantages to the public.
Since the federal program’s inception in 1976, over 1,400 deteriorated historically significant buildings in Virginia have been returned to productive service, representing a private investment of over $1 billion. The state program was initiated in 1997 and has already generated over $125 million of economic activity independent of the federal program. This money represents costs paid into the construction industry for architects, contractors, craftsmen, and suppliers, with a corresponding increase in local employment.
The capital improvement to the buildings results in dramatic increases in local property taxes, as well as a general enhancement in commercial activity. The rehabilitated buildings provide desperately needed housing (in many cases, low- and moderate-income housing), and office, retail, and other commercial space. The communities benefit from property improvement, blight removal, and increased occupancy of buildings in historic core neighborhoods. Both the federal and state tax credit programs are administered in Virginia through the Department of Historic Resources.
State tax credits are available for owner-occupied, as well as income-producing buildings. If your property is income-producing, you may also be able to take advantage of the federal tax credits. (www.cr.nps.gov/hps/tps/tax) Also, information and assistance with tax-credit projects may be requested from the Richmond office or from the regional office in your area:
Ann Andrus (804) 367-2323 or firstname.lastname@example.org
Camille Bowman (757) 886-2818 or email@example.com
Michael Pulice (540) 857-7586) or firstname.lastname@example.org
David Edwards (540- 868-7030) or email@example.com
The Virginia Department of Historic Resources online at www.dhr.virginia.gov