Landmarking your property?
Explore the incentives available to assist you in realizing your preservation plans.
Explore the incentives available to assist you in realizing your preservation plans.
Historic Preservation Incentives For Residential PropertiesPROPERTY TAX ASSESSMENT FREEZE FOR HISTORIC RESIDENCES
The Property Tax Assessment Freeze for Historic Residences freezes property taxes over a 12-year period after rehabilitation of the property. There is a minimum investment of 25% the property’s market value, as determined by the County Assessor. The building must be owner-occupied (single family home, condominium, cooperative unit, or multi-family building up to 6 units) and a certified historic structure. Learn more here.
20% FEDERAL HISTORIC TAX CREDIT
A 20% Federal Historic Tax Credit is available for rehabilitating a historic building to an income-producing use. This dollar-for-dollar federal income tax credit, equal to 20% of the qualified construction costs and expenses, may be used by the building owner or syndicated to a tax-credit investor. To qualify for the credit, rehabilitation costs must exceed the building’s “adjusted basis” – that is, the purchase price minus the land cost and depreciation, (prior improvements by the current owner. Because someone will be buying this building and then working on it, there will be no prior improvements). The building must be listed on the National Register of Historic Places before the project is completed. The program is administered by the Illinois State Historic Preservation Office and National Park Service.
25% STATE HISTORIC TAX CREDIT
A 25% State Historic Tax Credit is available for rehabilitating a historic building to an income-producing use. This a competitive, dollar-for-dollar state income tax credit, equal to 25% of the qualified construction costs and expenses, must be coupled with the 20% Federal Historic Tax Credit. Each project that qualifies can apply for 25% of its qualifying rehabilitation expenditures (QREs) up to a total of $3 million in state income tax credits. No project can receive more than $3 million in Illinois Historic Preservation Tax Credits. To qualify for the credit, rehabilitation costs must exceed the building’s “adjusted basis” – that is, the purchase price minus the land cost and depreciation. The building must be a certified historic structure listed on the National Register of Historic Places before the project is completed. In addition, applications that meet one of the following criteria will be prioritized: 1). the qualified historic structure is located in a county that borders a state with a historic property rehabilitation credit; 2). the qualified historic structure was previously owned by a federal, state or local governmental entity; 3). the qualified historic structure is located in a census tract that has a median family income at or below the state median family income; 4). the qualified rehabilitation plan includes in the development partnership a Community Development Entity or a low-profit (B Corporation) or not-for-profit organization; 5). the qualified historic structure is located in an area declared under an Emergency Declaration of Major Disaster Declaration under the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act. The program is administered by the Illinois State Historic Preservation Office.
The Illinois State Historic Preservation Office has released the 2019 schedule for the new Illinois Historic Preservation Tax Credit Program, which took effect Jan. 1, 2019. Those looking to submit applications during the program’s first round should mark June 5, 2019, on their calendars. That is when SHPO will hold a mandatory meeting in Springfield for all Round 1 applicants. See the full SHPO tax credit program schedule here.
Historic Preservation Incentives For Non-Residential PropertiesILLINOIS HISTORIC PRESERVATION TAX CREDIT PROGRAM
The Illinois Historic Preservation Tax Credit Program provides a state income tax credit equal to 25% of a project’s qualified expenditures to owners of certified historic structures located within River Edge Redevelopment Zones (Aurora, East St. Louis, Elgin, Rockford, and soon Peoria) who undertake certified rehabilitation projects during the taxable year. For information on the current program, administered jointly by the Department of Commerce and Economic Opportunity (DCEO) and the Illinois State Historic Preservation Office, click here. To identify properties in Rockford that may qualify for this incentive click here.
20% FEDERAL HISTORIC TAX CREDIT
A 20% Federal Historic Tax Credit is available for rehabilitating a historic building to an income-producing use. This dollar-for-dollar federal income tax credit, equal to 20% of the qualified construction costs and expenses, may be used by the building owner or syndicated to a tax-credit investor. To qualify for the credit, rehabilitation costs must exceed the building’s “adjusted basis” – that is, the purchase price minus the land cost and depreciation, (prior improvements by the current owner. Because someone will be buying this building and then working on it, there will be no prior improvements). The building must be listed on the National Register of Historic Places before the project is completed. The program is administered by the Illinois State Historic Preservation Office and National Park Service.
25% STATE HISTORIC TAX CREDIT
A 25% State Historic Tax Credit is available for rehabilitating a historic building to an income-producing use. This a competitive, dollar-for-dollar state income tax credit, equal to 25% of the qualified construction costs and expenses, must be coupled with the 20% Federal Historic Tax Credit. Each project that qualifies can apply for 25% of its qualifying rehabilitation expenditures (QREs) up to a total of $3 million in state income tax credits. No project can receive more than $3 million in Illinois Historic Preservation Tax Credits. To qualify for the credit, rehabilitation costs must exceed the building’s “adjusted basis” – that is, the purchase price minus the land cost and depreciation. The building must be a certified historic structure listed on the National Register of Historic Places before the project is completed. In addition, applications that meet one of the following criteria will be prioritized: 1). the qualified historic structure is located in a county that borders a state with a historic property rehabilitation credit; 2). the qualified historic structure was previously owned by a federal, state or local governmental entity; 3). the qualified historic structure is located in a census tract that has a median family income at or below the state median family income; 4). the qualified rehabilitation plan includes in the development partnership a Community Development Entity or a low-profit (B Corporation) or not-for-profit organization; 5). the qualified historic structure is located in an area declared under an Emergency Declaration of Major Disaster Declaration under the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act. The program is administered by the Illinois State Historic Preservation Office.
