Historic rehabilitation tax credit: Tax: Services: CLA (CliftonLarsonAllen)

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CliftonLarsonAllen (CLA) has the national resources, local knowledge and historic tax credit experience to give you the confidence to pursue investment, development and rehabilitation of old structures.

The Historic Tax Credit (HTC) incentivizes developers to rehabilitate properties to preserve their historic nature and architectural significance. These projects tend to cost more than a typical renovation, which can make the CTH a last item in the capital pile when developing historic buildings, such as offices, condominiums, and retail stores.

A unique approach

CLA combines a deep specialization in the real estate industry with our experience and connections in the HTC arena to help your rehabilitation project succeed. We are a national company with resources in most markets and therefore have specific knowledge of the regions in which these projects are carried out. We can help you navigate the documents needed to move your project forward.

How the historical tax credit works

To claim a 20% federal credit, the building must be listed on the National Register or be a contributing structure in a registered historic district. In addition, more than 30 states also have state-level credit.

HTC example

If a developer spends $12 million to rehabilitate a historic property and $10 million of it qualifies for the credit, a federal credit of $2 million would be generated. If the promoter cannot use the credit, a private sector investor may have to take the credit. At a price of $0.85 per credit, an investor would inject $1.7 million of federal tax credit into the project.

Tax Credit Historical Services

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