Posts Tagged ‘elevator preservation’
Tuesday, August 4th, 2009
Did you know that if you have an old historic building preserving the historic look of it can qualify it for a tax credit? What are the basic requirements that determine whether a project will be eligible for the 20% tax credit?
There are 4 factors that can help you decide whether your rehabilitation project proposal would meet the basic application requirements for the 20% tax credit.
1. The historic building must be listed in the National Register of Historic Places or be certified as contributing to the significance of a “registered historic district.”
Some eligible items include:
Permanent coverings, such as paneling or tiles
Windows and doors
Components of central air conditioning or heating systems
Plumbing and plumbing fixtures
Electrical wiring and lighting fixtures
Escalators, elevators, sprinkler systems, fire escapes
Other components related to the operation or maintenance of the building
Some ineligible items include:
Carpeting (if tacked in place and not glued)
Decks (not part of original building)
Demolition costs (removal of a building on property site)
New construction costs or enlargement costs (increase in total volume)
Outdoor lighting remote from building
Porches and porticos (not part of original building)
Storm sewer construction costs
3. The project must meet the “substantial rehabilitation test.” In brief, this means that the cost of rehabilitation must exceed the pre-rehabilitation cost of the building. Generally, this test must be met within two years or within five years for a project completed in multiple phases.
4. The rehabilitation work must be done according to the Secretary of the Interior’s Standards for Rehabilitation. These are ten principles that, when followed, ensure the historic character of the building has been preserved in the rehabilitation.