[MassHistPres] Historic preservation tax credits

[James J. Gaffney III]

Ralph:

If your plain English version surfaces, perhaps you or your source could 
post; I am sure there would be general interest.

Thanks,

Jay Gaffney
Tewksbury Historical Commission

Steinitz, Michael @ SEC wrote:
>  Ralph,
>
> Call the Massachusetts Historical Commission and ask for Ryan Maciej,
> who can answer your questions.
>
> Michael
>
> Michael Steinitz
> Director
> Preservation Planning Division
> Massachusetts Historical Commission
> 220 Morrissey Boulevard
> Boston, MA 02144
> 617-727-8470
> 617-727-5128 (fax)
> michael.steinitz at state.ma.us
>
>
> -----Original Message-----
> From: masshistpres-bounces at cs.umb.edu
> [mailto:masshistpres-bounces at cs.umb.edu] On Behalf Of
> slater at alum.rpi.edu
> Sent: Monday, October 01, 2007 9:29 AM
> To: masshistpres at cs.umb.edu
> Subject: [MassHistPres] Historic preservation tax credits
>
> Does anyone have a plain-English translation of the requirements and
> steps necessary to pursue the state and federal historic preservation
> tax credits?
>
> Here are links to each program:
>
> Federal: http://www.nps.gov/history/hps/tps/tax/index.htm
>
> State: http://www.sec.state.ma.us/MHC/mhctax/taxidx.htm
>
> The language is very confusing to me though. Here's what I can gather on
> the federal program:
>
> * The programs is a tax credit based on a percentage of the cost of
> certified restoration of income-producing historic properties. 
>
> * Federal credit is 20%. 
>
> * Federal credits are for properties that are individually listed on the
> National Register, reside in a National Register district, potentially
> simply "eligible for National Register listing", or potentially in a
> local historic district. I'm fuzzy on the latter two points, since there
> is a distinction drawn to them on the federal web site.
>
> * The cost of rehabilitation must exceed the pre-rehabilitation cost of
> the building. 
>
> * There seems to be significant weight given to original materials. I
> gathered, for example, that reshingling a building whose shingles had
> rotted would disqualify a property, because the emphasis would be on
> retaining original materials, not replicating them. This surprises me a
> little, because I'm not sure how you'd determine if such a house had
> been reshingled in the 1920's, 1940's, 1960's, 1980's, etc.
>
> I'm a little fuzzier on the state program, because there is no concise
> guide like the one describing the federal program, there are just forms
> and laws:
>
> * State also lists 20% tax credit, but I get the sense that there could
> be some interplay with the federal credits, perhaps you can't get a 20%
> credit on both state and federal?
>
> * Form has checkboxes for National Register properties, plus eligibility
> for NR listing, but it is unclear whether local historic district
> properties are eligible.
>
> * State program has a limited budget; I'm not sure about the federal
> program. 
>
> * I'm not sure if the state program has the same "renovation must exceed
> the cost of the property" requirement.
>
> Here are other questions I have about both programs:
>
> * Can the credit be used across multiple tax years? For example, if
> someone does $100k in renovation and receives a $20k tax credit, but
> only has $10k in taxes per year, can $10k of the credit be taken in two
> consecutive years?
>
> * Are there restrictions as to when the credit be applied for? For
> example, do you have to apply for the credit before the work has
> started? 
>
> * What is the turnaround time for applying and receiving notice of the
> state credit?
>
> Is there anything else I'm missing on these programs? I get the sense
> that they are relatively obscure for the majority of property owners,
> potentially due to their complexity.
>
> Thanks,
>
> Ralph Slate
> Springfield Historical Commission
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