Content area
Full Text
GREENSBORO - Across the state, developers are turning to state and federal tax credits to help finance the rehabilitation of historic buildings.
The Triad, however, appears to be lagging behind, says Tim Simmons, the senior preservation architect and tax credit coordinator of the North Carolina State Historic Preservation Office.
"There's not a lot happening in the Triad," he says.
Perhaps a recent seminar in Greensboro may change that. Simmons was among the speakers at a day-long seminar May 17 on downtown revitalization that attracted about 200 builders, architects and politicians.
Simmons explained the ins and outs of the historic tax credit process, including the combination of a 20 percent federal tax credit and a 20 percent state tax credit available to those rehabilitating historic buildings.
These credits can be combined on income-producing properties, including rental residential space. In order to qualify for the credits, a project must be done on a nationally registered historic building or a building in a nationally registered historic district. A flyer distributed during Simmons' address says, "for income-producing properties, the rehabilitation expenses must exceed the greater of the 'adjusted basis' of the building or $5,000 within a 24-month period, or a 60-month period for phased projects."
The two 20 percent figures are taken from the amount spent for improvements on the existing building, not additions to it.
"Your renovation costs can be reduced by 40 percent," Simmons says. He added that the credits, as opposed to deductions, are a "dollar-for-dollar" reduction in the taxes owed.
Yet, it's not just about income-generating properties. A 30 percent state tax credit is available for people doing rehabilitation work on non-income-producing properties registered as historic buildings or in historic districts. A 10 percent credit is also available from the state for rehabilitating non-historic, incomeproducing buildings built before 1936.
Not a panacea
Ray Gibbs, president of Downtown Greensboro Inc., says tax credits are a useful tool in financing rehabilitation projects, but that they are not...