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HISTORIC
State Tax Credit |
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 Historic
State Tax Credits
Numerous states have designed Historic Preservation Tax Credit Programs
to provide an extra incentive to preserve historic structures. Communities
benefit from the restoration of historic properties through property
improvement, increased occupancy, work-intensive construction and
increased property taxes. Since each state offers unique tax incentives
structured by the state historic preservation office, we concentrate
on the programs that provide the greatest benefit for our corporate
investors.
Historic state tax credits are distributed to investors by either
allocation, through a limited partnership, or by certificate. The
credits are claimed in the year the rehabilitation is certified as
completed by the authority. Although the credit is typically earned
in the first year, a few states distribute the credit over a longer
period, such as 5 years.
Although each state program is different, all programs have specific
characteristics regarding recapture, holding period, ability to carry
forward and ability to carry back. Additionally, in all cases, the
state Historic Preservation Tax Credits can be used to offset state
corporate income tax and in some cases premium and/or franchise taxes.
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