Historic Federal Commercial Tax Credit

Hi Everyone,
I have a two family brownstone and I am looking into applying for the historic federal commercial as well as NYS homeowner tax credit. Has anyone every done this? Any suggestions are appreciated. Specifically how you tackled listing your historic and non historic repairs to maximize the tax credit. Thanks, Joanna

jonny.townsend

in General Discussion 7 years and 6 months ago

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Northie | 7 years and 6 months ago

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I applied and was approved for the New York State Historic Homeownership Rehabilitation Tax Credit. You have to spend at least $5,000.00 on qualifying work (easy to do with costs in NY these days) and at least 5% of the total project must be spent on the exterior of the building.

You CAN include other work into the calculation to max out the credit. The credit will cover 20% of qualified rehabilitation costs of structures, up to a credit value of $50,000. The application process is pretty simple and straightforward. And the people who work in the office that manages the program are very nice and helpful.

The good news is that you can apply for this credit EVERY YEAR. So if you have a big renovation, you want to plan your work to cross over years to get the max for each year.

housepoor | 7 years and 6 months ago

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I had looked into this at one point when I could buy a shell in Harlem that was in a NYS & NYC historic district. But I think resident2 is correct: the numbers won’t work now. I had spoken to one or two people at the New York State Office of Parks, Recreation and Historic Preservation Technical Preservation Services, Consultation & Tax Credit Programs unit who were very knowledgeable. Their web site lists who is responsible for what geographical area. https://parks.ny.gov/shpo/contact/ It may be worth a call to figure out what the rules are.

jonny.townsend | 7 years and 6 months ago

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Yeah I wasn’t sure how much the calculation comes into play as long as you are doing a large renovation. Any suggestions on how much details they liked or how tough it was to get approval from the parks department? Thanks, Joanna

resident2 | 7 years and 6 months ago

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I used to use Landmark tax credits to get investors to invest back in the 1980’s when the numbers in Fort Greene worked to take advantage of them, but I do not think it works anymore in most of NYC. You need to spend as much or more than the acquisition price on the historic restoration. We then kept them as rentals for the 5 year requirement and wrote the tax credits off over the 5 year period.
I have not looked at it seriously recently because the acquisition prices are so high, to then spend that much on restoration etc to hold as a rental…. it does not compute.