1	show me the M O N E Y
2	"Preservation Services Division" Preservation Services Division Architecture Section Federal and State Projects
3	Illinois Main Street Design Services
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6	GRANTS? Not many Federal or State & most are: Publicly owned or Publicly accessible buildings or Geared to a Specific building type or occupancy More easily achievable funds: TAX INCENTIVES
7	PRESERVATION TAX INCENTIVES
8	TAX INCENTIVES Income Tax Credits Property Tax Incentives Easements
9	What are the Federal Historic Tax Credits?
10	What are the Federal Historic Tax Credits? Not a grant more like a rebate Percentage of project cost is subtracted from federal income taxes owed
11	What are the Federal Historic Tax Credits? Credit = 10% or 20% of rehab expenditures i.e. 20 % of a $100K project = $20K credit
12	What are the Historic Tax Credits? Average individual owner can only use about $7-10,000 credits per year Investor income limits Can market the credits Steve will talk next with more about this
13	20% Tax Credit Four Criteria Income producing property Historic building Substantial rehab (expenditure) Work meets the Standards
14	20% ‘Historic’ Credit 1. Certified historic structure National Register individually listed
15	Or contributing to a Historic District National Register / some local
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17	2. Income Producing Building
18	3. Substantial Rehabilitation Minimum Expenditure during 24 month period: >$5000 or Adjusted Basis Adjusted basis = (roughly) purchase price - land value - depreciation + previous improvements
19	"2 years or" 2 years or 5 Year Phased project (must have plans for 5 year)
20	4. Work Meets the Standards
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22	"Rehab not restoration"
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26	Standards also talk about storefront design
27	"Non-original alterations may be significant..."
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29	Work with your building’s history
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31	"More flexibility in less" More flexibility in less significant areas
32	What’s the Application Process?
33	Part One – Evaluation of Significance
34	Part One – Evaluation of Significance
35	Part Two – Description of Rehabilitation
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38	Pre-rehab Photos
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40	Part Three – At Completion Post-rehab photographs Financial Expenditures
41	10% Rehabilitation Tax Credit Administered by IRS not IHPA Requires IRS form 3468 Non-historic NOT for Historic District Buildings or individual National Register
42	10% Rehabilitation Tax Credit Income-producing Non-residential Buildings built before 1936 Physical Retention Test not Standards
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44	Property Tax Assessment Freeze Administered by IHPA Residential, owner-occupied Historic Buildings Property assessment frozen at pre-rehab level for 8 years then 4 yr step-up
45	Property Tax Assessment Freeze Application similar to Tax Credit Pictures, Photos
46	Secretary of the Interior’s Standards
47	Property Tax Assessment Freeze Apartment buildings (up to six flats) if one unit is owner- occupied
48	Property Tax Assessment Freeze Condos & Co-ops
49	Property Tax Assessment Freeze After rehab developers can sell homes or units with the freeze Developer starts the application process The first “owner-occupant” is eligible for the freeze
50	Property Tax Assessment Freeze Mixed Credits and Freeze in same building (but not same unit)
51	50% Disabled Access Tax Credit IRS &/ Department of the Treasury Designed for small businesses 50% of the amount up to $5,000/yr
52	Galesburg Former Masonic Hall
53	Investment Tax Credit for Low Income Housing Illinois Housing Development Authority (IHDA) administers Low-income/affordable housing Acquisition, construction, & rehab Must retain for 15 years Credit funds are limited and are allocated by IHDA
54	Investment Tax Credit for Low Income Housing
55	Easements Certified historic building Easement = loss in value Holding organization charges fee Landmarks Preservation Council of Illinois accepts easements
56	Conclusion: Variety of Incentives can promote neighborhood and downtown revitalization
57	FINANCIAL TAX INCENTIVES
58	Thank you Carol Dyson Architecture Section Illinois Historic Preservation Agency 217-785-4512 WWW.Illinois-History.gov www.CR.NPS.gov/HPS