[MassHistPres] Historic preservation tax credits

Mon Oct 1 16:02:24 EDT 2007

The Massachusetts Economic Development Council with the Northeastern  
Economic Developers Association and the American Planning Association  
Massachusetts Chapter are sponsoring a one-day seminar on October  
18th in Worcester on a variety of tax credits including historic and  
New Markets.

I will be giving a presentation on the use of the historic credit -  
much of it focussed on the financial aspects such as calculating your  
basis, what is considered an eligible cost and turning the credit  
into equity.  It will also include a discussion of the Massachusetts  
credit and its impact on the ability of smaller projects to utilize  
both state and federal  historic credits.

The New Market panel will also include a discussion on combining New  
Market Credits with historic credits and the positive impact it has  
on projects.

The registration fee for non-member is $60.  More information is  
available at http://www.nedaonline.org/education.asp.

Albert Rex

Director, Northeast Office

MacRostie Historic Advisors LLC

56 Highgate Road

Marlborough, MA 01752

(617) 359-7261 phone

(617) 507-6457  fax

albert at mac-ha.com

http://www.macrostiehistoric.com/index.html

On Oct 1, 2007, at 3:10 PM, Jill Fisher wrote:

> 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
>>> ******************************
>>> For administrative questions regarding this list, please contact
>>> Christopher.Skelly at state.ma.us directly.  PLEASE DO NOT "REPLY"  
>>> TO THE
>>> WHOLE LIST.
>>> MassHistPres mailing list
>>> MassHistPres at cs.umb.edu
>>> http://mailman.cs.umb.edu/mailman/listinfo/masshistpres
>>> ********************************
>>> ******************************
>>> For administrative questions regarding this list, please contact
>> Christopher.Skelly at state.ma.us directly.  PLEASE DO NOT "REPLY" TO  
>> THE
>> WHOLE LIST.
>>> MassHistPres mailing list
>>> MassHistPres at cs.umb.edu
>>> http://mailman.cs.umb.edu/mailman/listinfo/masshistpres
>>> ********************************
>>>
>>>
>>>
>>>
>>
>> ******************************
>> For administrative questions regarding this list, please contact
>> Christopher.Skelly at state.ma.us directly.  PLEASE DO NOT "REPLY" TO  
>> THE
>> WHOLE LIST.
>> MassHistPres mailing list
>> MassHistPres at cs.umb.edu
>> http://mailman.cs.umb.edu/mailman/listinfo/masshistpres
>> ********************************
>
>
> ******************************
> For administrative questions regarding this list, please contact  
> Christopher.Skelly at state.ma.us directly.  PLEASE DO NOT "REPLY" TO  
> THE WHOLE LIST.
> MassHistPres mailing list
> MassHistPres at cs.umb.edu
> http://mailman.cs.umb.edu/mailman/listinfo/masshistpres
> ********************************