Redevelopment provides cultural and aesthetic benefits to communities. The redevelopers, however, may be unaware of the financial incentives that support these efforts.
The most significant tax incentives redevelopers are eligible for are the 20% tax credit provided by the U.S. federal government and the 25% tax credit provided by the Missouri Department of Revenue for qualified rehabilitation expenditures (QREs) used to rehabilitate certified historic buildings. Other states in addition to Missouri have historic or rehabilitation tax credits available.
Your Project Qualifies If:
- The building is a certified historic structure or located in a certified historic district
- The project meets a 'substantial rehabilitation' test
- To qualify for federal tax credits, the building must be used for income-producing purposes such as for a trade or business after rehabilitation. The state of Missouri does allow tax credits on the rehabilitation of personal residences.
- The rehabilitation adheres to the Secretary of the Interior's Standards for Rehabilitation
The specialists at Brown Smith Wallace are experienced in restoration and renovation projects qualifying for historic tax credits. We have the knowledge and tools to analyze these complex transactions and evaluate which expenditures are eligible for historic tax credits. Our team is positioned to identify financial incentives and implement long-term tax strategies that will benefit your historic project.
Some of the historic tax credit services we provide include:
- State cost certification audits
- Estimation of tax credits and assistance in obtaining project financing
- Eligible basis consulting
- Consulting related to mixed financing and combinations of various credits
- Assistance with credit transfers
The utilization of federal and state historic tax credit programs can significantly impact the benefits of your historic project. We provide the necessary expertise to turn your real estate development into a financial success. To determine if your project qualifies for any potential tax savings, contact us today for a Historic Tax Credit Assessment.
