Transcript Tax Credit 101

The Ins and Outs of the Delaware State Historic Preservation Tax Program
TAX CREDIT 101
Definition of a Tax Credit
Wikipedia says . . . A tax credit is a sum
deducted from the total amount a taxpayer
owes to the state. A tax credit may be granted
for various types of taxes, such as an income
tax or property tax. It may be granted in
recognition of taxes already paid, as a subsidy,
or to encourage investment or other behaviors.
Tax systems may grant tax credits to
businesses or individuals.
National Register of
Historic Places
The National Register of Historic Places is the
official list of the Nation's historic places worthy of
preservation. Authorized by the National Historic
Preservation Act of 1966, the National Register of
Historic Places is part of a national program to
coordinate and support public and private efforts to
identify, evaluate, and protect America's historic and
archeological resources. These will include individual
places or registered historic communities.
From the web site of the National Park Service: www.cr.nps.gov/nr/
Two Different Tax Credits For
Historic Properties
• Federal Investment Tax Credit
– Properties listed in the National Register of Historic
Places
– Awards 20% of the total project cost in Tax Credits to
properties rehabilitated for income-producing purposes,
including commercial, industrial, agricultural, rental
residential or apartment use. [Private homes do not
qualify for the Federal Tax Credit. ]
– Can use both credits together for income producing
properties- the documentation follows the same format
Two Different Tax Credits For
Historic Properties
• Delaware Historic Preservation
Tax Credit
– Any Property listed in National Register of
Historic Places
– Anybody can take advantage: transferable
credits
• Commercial Projects : 20% credit
• Non-Commercial Projects:30% credit
– Everyone Else: Homeowners In Historic Districts,
Churches, Non-Profits
The Definition of Rehabilitation
The process of returning a property to a
state of utility, through repair or
alteration, which makes possible an
efficient
contemporary
use
while
preserving those portions and features of
the property which are significant to its
historic, architectural, and cultural values.
Secretary of the Interior’s Standards
For Rehabilitation
• Ten Common Sense Principles Including:
– Choosing a use that requires Minimal Change
– Keeping what’s Important about the building
– Repairing Rather Than Replacing
– Keeping later changes
– Treating the building fabric gently
– Letting the old building be the centerpiece
http://www.nps.gov/hps/tps/standguide/rehab/rehab_standards.htm
The Secretary of the Interior's
Standards for Rehabilitation
Copies are
available from the
State Historic
Preservation
Office. It has also
been transformed
into a nice and easy
navigable website.
http://www.nps.gov/hps/tps/standguide/
Features of the Delaware Tax
Credit Program
• For commercial properties, 20% of approved rehabilitation costs are
credited against state income or franchise tax liability
• For Everyone Else, including owner-occupied residences, the credit
increases to 30% of qualified costs.
• An extra 10% credit is available for qualifying low income projects
• Property must be listed in the National Register of Historic Places or
located in a National Register-listed Historic District
• Approved expenditures include most construction related costs
• Tax credits can be sold to a bank or any Delaware income taxpayer
who can use them as an offset against Delaware income taxes
• The program is capped at $5 million in tax credits awarded per year
What Do You Do to
Get Started?
On the Web, go to the State
Historic Preservation Office
www.history.delaware.gov
Or Contact Joan Larrivee,
Tax Credit Program Manager
[email protected]
(302) 736-7406
Start at the
Division of Historical and Cultural Affairs
Then go to Preservation Tax
Credit Programs
The Basics
You Will Find……..
Four-Part
Application
Part One
Fill Out for
properties in historic
districts only.
Individually listed
buildings can skip this
step.
History of the
property
Four-Part
Application
Part Two
Complete this part
before the work is
done.
Take lots of
photographs before
starting.
Plan and
pictures
Four-Part
Application
Part Three
Complete and submit
with photos taken
after the work is
done.
Results
Four-Part
Application
Part Four
Submit copies of the
invoices from the
contractor.
Request credit
and document
costs
If Your Property Is Located in a Local
Preservation District, like in New Castle,
or Wilmington, or Lewes, or Dover
Your work is already subject to
review. Why not use the credits?
It is nothing spent and could be a great deal
GAINED
What are you waiting for?
Involved with a Church or other nonprofit organization?
You can do what Lewes Presbyterian Church,
the Wilmington YMCA, the Laurel Historical
Society, St. Peter’s Church (New Castle)
and the Delaware Historical Society have all
done.
in order to help pay for Rehabilitation Costs
Before you start . . .
Contact the
State Historic Preservation Office.
The SHPO will always have the most
up-to-date and current information.
302-736-7400
Want to talk to the tax credit
coordinator?
Program Manager, Joan Larrivee
is ready and willing to help.
[email protected]
302-736-7406
G0 to Preservation Delaware’s
Website
for general information and a copy
of this presentation:
www.preservationde.org
This Presentation Is Brought To You
By A Grant From:
Delaware Division of Historical and Cultural
Affairs
21 The Green
Dover, DE 19901
302-736-7400 // 302-739-5660 (fax)
http://history.delaware.gov
Timothy Slavin, Director, SHPO
[email protected]
Gwen Davis, Deputy SHPO
[email protected]
Joan Larrivee, Tax Credit Program
Manager
[email protected]
302-736-7406
This Presentation Is Brought To
You By
Preservation Delaware
The New Castle Court House Museum
211 Delaware Street
New Castle, DE 19720
302/322-7100 // 302/322-8400
Terry Graham, Executive Director
[email protected]
http://preservationde.org/
Web References Cited
Acknowledgement of Support and Nondiscrimination
Statement
This presentation has been financed in part from funds
provided by The National Park Service, U.S. Department
of Interior as part of a grant from the Delaware State
Historic Preservation Office. However the contents and
opinions do not necessarily reflect the views and policies of
the Department of the Interior.
http://history.delaware.gov/pdfs/maloneyreport.pdf
Under Title VI of the Civil Rights Act of 1964, Section 504
of the Rehabilitation Act of 1973, and the Age
Discrimination Act of 1975, as amended, the U.S.
Department of the Interior prohibits discrimination on the
basis of race, color, national origin, disability or age in its
federally assisted programs. If you believe you have been
discriminated against in any program, activity , or facility as
described above, or if you desire further information, please
write to: Office of Equal Opportunity, National Park
Service, 1849 C Street, NW, Washington, D.C. 20240
http://history.delaware.gov/preservation/taxcredit.s
html
http://www.placeeconomics.com/wpcontent/uploads
/2011/03/rypkema_delaware_tax_credit.pdf
www.preservationde.org
www.cr.nps.gov/nr
Thank You!