In 1976, the National Park Service created Federal Historic Preservation Tax Incentives for owners who rehabilitate income producing landmark buildings. A 20% income tax credit is available for rehabbing commercial, industrial, agricultural and rental residential buildings. A credit lowers the amount of tax owed; this is more advantageous than a tax deduction, which lowers the amount of income subject to taxation.
What buildings are eligible?
An income-producing building that is individually listed on the National Register of Historic Places, cited as a contributing building in a National Register Historic District or cited as a contributing building in a local district that has been certified by the National Park Service. Chicago has many Chicago Landmarks that are listed as certified historic districts.
A building that is depreciable. That is, it must be used in a trade or business or held for the production of income. It may not serve exclusively as the owner's private residence. (See Property Tax Assessment Freeze for the tax advantages available to owners of landmark homes)
A building that is being rehabilitated following guidelines described in the Secretary of the Interior's Standards for Rehabilitation.
How much money must be spent?
What does Benjamin Historic Certifications do?
Advise on proper preservation techniques to be certain that the Secretary of the Interior's Standards for Rehabilitation are followed.
Advise on what expenditures qualify toward the rehabilitation.
Provide any other needed guidance.
Why hire us?
We can assure that the process is completed in an easy, efficient manner.
We are experienced and have a long well-established working relationship with the Illinois Historic Preservation Agency, which administers the tax credit program.
We can, because of our expertise in the history of architecture, write the Landmark nominations that make properties eligible for the Federal Income Tax Credit.
Projects recently completed by team members include the Printers Building in Chicago, the former post office building (currently Home State Bank) in Woodstock and a duplex designed by Daniel Burnham in Evanston.
Benjamin Historic Certifications regularly writes Landmark nominations so that property owners can acquire the Federal Income Tax Credit.
The rehabilitation must be "substantial". That is, during any 24-month period selected by the taxpayer, rehabilitation expenditures must exceed the greater of $5000 or the adjusted basis of the building (generally the purchase price minus the cost of land, plus improvements already made, minus depreciation already taken). A project may be phased.
Prepare all the necessary documentation to ensure an owner qualifies for the tax credit. We administer the entire process from beginning to end. We process the paperwork, gather or take photographs and coordinate all work with the Illinois Historic Preservation Agency, which administers credit applications before sending them to the National Park Service for final approval.
We advise on how mistakes that could jeopardize the project can be avoided.
