Economic Incentives
tax credits
What Tax Credits Are Available?
The Federal government offers two Rehabilitation Investment Tax Credits: a 20% credit for the certified rehabilitation of certified historic structures and a 10% credit for the rehabilitation of non-historic (meaning not listed in the National Register of Historic Places or a contributing structure in a National Register district), buildings built before 1936. The National Park Service administers these programs in partnership with the Internal Revenue Service and the State Historic Preservation Offices. To qualify for the 20% credit, the project must be substantial and the building income producing, a "certified historic structure" and held for at least five years. For more information, contact the Ohio Historic Preservation Office or by phone at (614) 298-2000.
Since 1994, efforts have been made toward establishing a rehabilitation tax credit for homeowners; however, it has not yet met with success. In May 2006, the Ohio House of Representatives passed AM. Sub. HB 149, which takes a pilot program approach to offering a State Hisoric Preservation Tax Credits for commercial properties. The Ohio Historic Tax Credit is 25% of qualified rehabilitation costs. The program is administered jointly by the Ohio Department of Development and the Ohio Historical Society. For more information, visit www.development.ohio.gov/UD/OHPTC.
In 2000, Congress also passed the Community Renewal Tax Relief Act, creating a New Market Tax Credit Program to encourage private investments in low-income communities. The program is based on a competitive application process by which community reinvestment entities certified by the CDFI FUnd compete for $2.5 billion in federal tax credit applications.
How Do I Apply for a Tax Credit?
Before you can claim the federal 20% tax credit, your building must be designated a "certified historic structure," which means that it must either be listed individually in the National Register of Historic Places or be a contributing building in a registered historic district. To find out if your building is listed on the National Register, go to the National Park Service or the Ohio Historic Preservation Office.
The application for the Federal Rehabilitation Tax Credit, instructions, Secretary of the Interior's Standards for Rehabilitation and other materials are available on-line at www.nps.gov/nr and at www.ohiohistory.org/resources, or by calling the Ohio Historic Preservation Office at (614) 298-2000.
