By Bruno Caligara
Certain properties located in historic districts may be eligible for both a State and Federal Tax Credit Program, which means a savings of 20% from Federal taxes and an additional 20% from the State. In many cases, buildings will qualify for the Federal tax credit, yet in order to qualify for the State tax credit the property, they must be located in a Qualifying Census Tract area.
If a property qualifies, the next step is to consult a tax professional or attorney, and conduct a review of how these tax credits could be applied. Below are links that will help all involved to understand the benefits.
Secretary’s Standards for Rehabilitation: Guidelines standards for renovation work to be eligible for the Credits.
Guidelines for architects to prepare plan submission, and outlines how to restore the buildings windows, exteriors and interiors, trim and finishes, along with what is acceptable if you plan to upgrade for solar and alternative energy saving power.
IRS information link for tax professionals, which outlines how the 20% applies based on all factors.
The applications forms with details on what to submit, and with what supporting documents. Please note that actual timeline for this process may exceed 4 to 6 months.
Qualifications for the State Credit for buildings located in the Historic District. Buildings need to be located in one of the Qualifying Census Tract areas.
All applications in the NYC area must first to go through The Landmarks Preservation and the New York State Parks, Recreation & Historic Preservation Division for review and approval prior to the commencement of any work to receive these tax credits.