Historic tax Credits
80 percent of the construction cost for Universal Preservation Hall was funded by grants and Historic Tax Credits
The relatively recent addition of the State Historic Tax Credit has spurred a significant increase in restoration and adaptive reuse projects. These programs allow for up to 20% of the Qualified Rehabilitation Expenditures (QRE) to be used as a credit towards federal income taxes and 20% of the QRE credits towards state income taxes. Collectively, these two tax credit programs can offset up to 40% of the total QREs. For example, in a project with a $1 Million QRE there would be a federal and state tax credit of 40% or $400,000. If the owner doesn’t have a large income tax burden these credits can be syndicated (sold) to offset the cost of construction. After calculating the cost associated with obtaining and managing these credits the typical return is around 35% or in the example above around $350,000 (around 30% if syndicating (selling) the credits, around $300,000).
To qualify for the Commercial Historic Tax Credit Program the property must be listed on the National or State Register of Historic Places, individually or as a contributing building within a historic district, or eligible for inclusion in the register. For the State Tax Credit Program, you also must be located within a Qualified Census Tract that has a median family income level at or below the state average.
A few of our Tax Credit Projects, which have saved our clients over $10 Million includes:
Universal Preservation Hall, Saratoga Springs, NY
Nikola Tesla's Wardenclyffe Laboratory Shoreham, NY
The Queensbury Hotel, Glens Falls, NY
414 Broadway, Albany, NY
Maria Regina Campus, Syracuse, NY