[MassHistPres] Historic preservation tax credits

Mon Oct 1 15:10:41 EDT 2007

My understanding is that the amount of actual tax credits depends as much 
upon the entity receiving the credits as on the project itself, i.e. what 
their "tax appetite" is.  In the past I've been advised that the applicant 
should have his or her accountant review the program for what is truly 
usable.  Maybe this would be a good topic for a seminar, for those of us who 
so often tell people they can get a 20% tax credit!

Jill Fisher, AICP
Principal Planner
Larson Fisher Associates, Inc.
Historic Preservation & Planning Services
PO Box 1394
Woodstock, NY  12498
845-679-5054
jillfisher47 at hotmail.com

www.larsonfisher.com

>From: "James J. Gaffney III" <jjgiiilaw at juno.com>
>Reply-To: jjgiiilaw at verizon.net
>To: "Steinitz, Michael @ SEC" <Michael.Steinitz at state.ma.us>
>CC: "Maciej, Ryan @ SEC" <Ryan.Maciej at state.ma.us>, masshistpres at cs.umb.edu
>Subject: Re: [MassHistPres] Historic preservation tax credits
>Date: Mon, 01 Oct 2007 13:35:31 -0400
>
>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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