The rehabilitation or renovation of historic buildings is a means to revitalize a community, enhance the beauty of a neighborhood, and stimulate economic activity for local builders.  Rehabilitation can bring a deteriorating, neglected structure back to life as an attractive, functional building to be used by residents or businesses.  Proper historic rehabilitation maintains the character and historic significance of a city’s once-treasured architecture while updating it to meet modern building code and standards for energy efficiency.  Many new restaurants, professional offices, and ultra-modern apartment complexes have been constructed in what were previously abandoned, dilapidated buildings. 

Recognizing the economic and quality-of-life benefits resulting from the rehabilitation of historic property, the US Government and many states provide incentives for such renewal in the form of income tax credits.  These credits are based on the amount of qualified expenditures and may serve as a means of financing the rehabilitation project.  The qualifications, complexity, and procedures vary from state to state so it is imperative that you consult with professionals that are familiar with your particular state’s rehabilitation credit if you are contemplating a project that may be eligible for tax credits.

In historic cities such as Savannah, Charleston and Atlanta there are countless opportunities to revitalize aging rundown properties and convert them to modern, green facilities for businesses or families to use.  In the early stages of your plan to restore or renovate a historic building, make sure you reach out to a qualified tax professional who can guide you through the legal aspects of obtaining the maximum tax credits available.

For an overview of the Federal Rehabilitation Investment Credit or the Georgia Historic Credit in PDF format, contact Daniel Rowe at drowe@ddfcpas.com or (912) 232-3480