HPC agenda 022598 - Laserfiche WebLink

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OS7 State Historic Preservation Office Division Of Archives And History North Carolina Department of Cultural Resources New Historic Preservation State Tax Credits Become Effective January 1 , 1998 The North Carolina General Assembly has ratified and Governor James B . Hunt Jr. has signed into law new state tax credits that make rehabilitations of historic buildings in North Carolina more attractive than ever before. The law provides . • An increase from 5 % to 20% in the existing state tax credit for rehabilitations of income-producing historic properties that also qualify for the 20% federal investment tax credit. In effect, the combined federal-state credits reduce the cost of a certified rehabilitation of an income-producing historic structure by 40%. • A new state tax credit of 30% for qualifying rehabilitations of nonincome-producing to structures, including owner-occupied personal residences. There is no equivalent federal credit for such rehabilitations. Some key points and cautionary reminders about the credits, • The new credits will apply only to qualified expenditures made on or after January 1 , 1998 . • Only certified historic structures will qualify for the credits . A " certified historic structure" is defined as a building that is listed in the National Register of Historic Places, either individually or as a contributing building in a National Register historic district, or as a contributing building within a local historic district that has been certified by the Department of the Interior. (There are only three of the latter in North Carolina. These are the Blount Street Historic District in Raleigh, the Goldsboro Historic District, and the Decatur-Hunter Historic District in Madison). • A nonincome-producing building must be a "certified historic structure " at the time the state credit is taken on that is , it must be actually listed in the National Register or it will not qualify for the state credit. The property owner must begin taking the credit in the year the rehabilitation project is completed . The federal tax credit for income- producing buildings for "preliminary certification" that enables an owner to take the credit for a qualifying rehabilitation even before the structure is actually listed in the National Register of Historic Places. There are no provisions for preliminary certification in the state law for nonincome- producing historic structures . • An owner may begin a rehabilitation project on a nonincome-producing property following approval of rehabilitation plans by the State Historic Preservation Office but prior to the listing of the property in the National Register, with the intention of having it listed in the Register by the time the project is completed. However, because listing of a property by the desired deadline cannot be guaranteed, owners are strongly urged to secure National Register listing of their nonincome-producing property prior to beginning a certified rehabilitation. A property is listed in the National Register of Historic Places by a nomination, which is a research report prepared according to detailed state and federal guidelines . The final authority on National Register listing is the federal Keeper of the National Register in Washington, DC . In its role as administrator of the National Register program in North Carolina, the NC State Historic Preservation Office is charged with ensuring that nominations forwarded by the State Historic Preservation Officer to the Keeper are complete and correct. The State Historic Preservation Office provides direction to preparers but does not write nominations. Most nominations are prepared by private consultants hired by property owners, local governments, or private non-profit organizations . The nomination process may take six months to two years or longer. (over)