Spend money rehabilitating a certified historic building, and the federal government pays you a 20 percent tax credit on what you spend on the rehab, dollar for dollar against your tax.
Add a state historic tax credit, and the benefit climbs.
Finance the building without recourse, and your personal assets never go on the line. Here is how the deal works under current law.
The Federal Credit: 20 Percent, Delivered over Five Years
The federal rehabilitation credit is 20 percent of your qualified rehabilitation expenditures on a certified historic structure.
You claim it in five equal annual installments: one-fifth of the credit each year, beginning in the year you place the building in service.
You must also reduce your basis in the building by the full amount of the credit. The basis reduction gives ... Log in to view full article.
