Columbus, Ohio 43211-2497 614/298-2000 2011 The 20% Federal - - PowerPoint PPT Presentation

Technical Preservation Services Department Ohio Historic Preservation Office

Ohio Historical Society

1982 Velma Avenue Columbus, Ohio 43211-2497 614/298-2000

2011

The 20% Federal Historic Rehabilitation Tax Credit: The Basics

Federal Historic Rehabilitation Tax Credit

 Federal Tax Credit for the Rehabilitation of Historic Buildings.  Income-Producing Use.  Substantial Rehabilitation.  Credit=20% of Qualified Rehabilitation Expenditures.  Certified Historic Structure (Application).  Certified Rehabilitation (Application).

Applying for the Federal Tax Credit

Preliminary meetings with Technical Preservation Services Department staff during the project planning stage, before any rehabilitation work is undertaken, are

• encouraged. We are here to assist you and we want

your project to be successful. Reviewers are Mariangela Pfister, Rachel Krause, Scott McIntosh and Judith Kitchen. Applications are submitted to the Ohio Historic Preservation Office for review and recommendations. Following state review, applications are submitted with state recommendations to the National Park Service in Washington, D.C. for final review and approval. The Internal Revenue Service administers the process of claiming the credit.

Federal Tax Credit Application Procedures

Applications are available online but must be submitted in paper form

 Part 1—Evaluation of Significance—Determines Whether the Building Is or Is Likely to Be a Certified Historic Structure (Listed

• n the National Register of Historic Places).

 Part 2—Description of Rehabilitation—Determines Whether the Proposed Rehabilitation Work Will Meet the Secretary of the Interior’s Standards for Rehabilitation.  Part 3—Request for Certification of Completed Work— Determines Whether the Completed Project Meets the Standards for Rehabilitation.

Part 1 Submission Requirements

• Descriptions of appearance

and significance

• Labeled before-rehab (and

current) photographs

– Photo number, building name and address – Brief description of view being shown – Month and year photo was taken

• Photo key
• Historic district map with

building located

• Two copies of everything

Part 1 Tips

• Carefully check the National Register status of the property. Don’t

rely on assumptions.

• Each building (or functionally-related group of buildings), unless it is

a single building listed individually on the National Register, requires a Part 1 application.

• If your building is not yet listed on the National Register, a draft

nomination form must be submitted with the Part 1 application and the normal nomination and listing process should be started.

• Use National Register information to prepare the Part 1 narrative.
• Submit the Part 1 application as early as possible.
• When we receive your application (Part 1, Part 2, Part 3 or

Amendment) you will be sent an acknowledgement form. Make sure you receive this form and check it for accuracy. Also read the helpful notes at the bottom.

Part 2 Submission Requirements

• Narrative that clearly and

completely describes before- rehab conditions and all intended work to the exterior, interior and site (photos and drawings are subordinate to the written narrative)

• Labeled “before” photographs
• f all areas of the building and

site, keyed to the pre-rehab drawings

• Drawings (pre-rehab and after

rehab)

• Other necessary information

such as specifications, product data, window survey, sightline study, tenant guidelines

• Two copies of everything

Part 2 Tips

• The Standards for Rehabilitation do not require you to take certain
• actions. They come into play only when you are proposing to do

something physically to the building.

• The Ohio Historic Preservation Office and National Park Service do

not design projects. We may suggest solutions based on our experience, but we do so in reaction to the information we receive.

• Provide an introductory paragraph or two to summarize the project.
• Submit everything at once and in the same package, if possible.

Our 30-day review period does not start until an application is complete.

• Complete and submit the federal fee payment form with the Part 2 to

expedite National Park Service review.

• Submit an Amendment form for any changes to approved Part 2

work prior to doing the work.

Part 3 Submission Requirements

• Labeled “after” photographs of

all areas shown in the Part 2 “before” photographs

• Evidence that all Part 2

Conditions were met

• Two copies of everything

Part 3 Tips

• Take the Part 3 photos from the same locations and number them

the same as the Part 2 photos. That will make our review much easier.

• Submit additional photos to show that any conditions placed on the

Part 2 approval were met.

• Submit an Amendment form with the Part 3 describing any work that

was not undertaken.

The 25% Ohio Historic Preservation Tax Credit (OHPTC): The Basics

Ohio Historic Preservation Tax Credit

 State Tax Credit for the Rehabilitation of Historic Buildings.  Administered by the Ohio Department of Development, with Assistance from the Ohio Historic Preservation Office (OHPO) of the Ohio Historical Society and the Ohio Department of Taxation.  Credit=25% of Qualified Rehabilitation Expenditures, up to $5 million.  Competitively Awarded Based on Potential Economic Impact and Regional Distributive Balance (Application).  Historic Building Requirement (Application). Preliminary certifications are not permitted, but buildings designated by Certified Local Governments qualify.  Approved Rehabilitation Work (Application). For combined federal/state tax credit projects, the federal Part 2 data will automatically apply to the OHPTC project, so no separate rehabilitation description is required. Work on OHPTC projects cannot start prior to approval recommendation from OHPO.

Applying for OHPTC

Preliminary meetings are encouraged. We are here to assist you and we want your project to be successful. Applications are submitted within the established application periods or Rounds to the Ohio Department of Development, which sends a copy to the Ohio Historic Preservation Office for determinations of historic building status and whether the rehabilitation work meets the Secretary of the Interior’s Standards for Rehabilitation. Program status, applications, program policies and the scoring system are available online.

The Secretary of the Interior’s

Standards for Rehabilitation

Helpful guidance for the successful rehabilitation of historic buildings

Rehabilitation:

Returning a property to a state of utility through repair or alteration, making possible an efficient contemporary use, while preserving features significant to its history, architecture and culture.

Standards for Rehabilitation

The Standards for Rehabilitation are ten common-sense principles emphasizing the preservation of historic character, repair rather than replacement and compatibility of alterations. They apply to all types of historic buildings. They pertain to exterior and interior features and spaces.

Historic Character

Environment Size Scale Materials Craftsmanship Details Spaces Shape Site Structure

Standard 1 - Find a compatible use.

Standard 2 - Preserve historic character.

Standard 3 - Don’t create a false sense of history.

Standard 4 - Preserve additions that have gained significance.

Standard 5 - Preserve distinctive features.

Standard 6 - Repair rather than replace. Match closely if repair is not possible.

Standard 7 - Do not cause damage to historic building materials.

Standard 8 - Protect significant archeological resources.

Standard 9 - Ensure that additions are compatible.

Standard 10 - Ensure that additions are reversible.

Making A Good Program Better/ Planning Successful Rehabilitation Projects,

the two goals of which are:

Making the requirements of the federal historic tax credit program clearer and Making the interpretation of the Secretary of the Interior’s Standards for Rehabilitation more understandable.

In addition to Preservation Briefs and the Guidelines for Rehabilitating Historic Buildings, the most up-to-date information on the federal historic rehabilitation tax credit program and applying the Standards for Rehabilitation is provided by

Ohio Historic Preservation Office Ohio Historical Society