1. Historic Rehabilitation Tax Credits Federal Incentives for Preservation

2. Program Benefit 20% of qualified rehabilitation costs available as credit (dollar for dollar reduction in tax) Credit available to owners of the property at the time project is completed

3. Building must be depreciable Income producing Not owner-occupied home

4. Property must be a certified historic building Individually listed in the National Register or A contributing building in a National Register historic district or an NPs certified local district

5. Rehabilitation must be “substantial” Cost of work done in a 24-month period must exceed the greater of: – the adjusted basis in the building at the beginning of the project or –$5,000

6. Project must be a certified rehabilitation Meets the Secretary of the Interior’s Standards for Rehabilitation Evaluation and determination by National Park Service

7. IRS Provisions Affecting Use of the Credit At Risk Rules –Credit available to investors who are “at risk” for the investment. Passive Activity Limitation –Credit from “passive” sources may not be used to offset tax liability from “active:” sources. Government and Tax-Exempt Use –No credit with disqualified lease for > 50% of property

8. Tax Incentives Tax Incentives for West Virginians West Virginia state income tax credit for the rehabilitation of historic income producing properties. –Under the provisions of West Virginia State Code §11-21-8a, there is a state income tax credit equal to 10% of the qualified rehabilitation expenditures.

9. Tax Incentives Tax Incentives for West Virginians West Virginia state income tax credit for the rehabilitation of historic residential properties –This credit is equal to 20% of the eligible rehabilitation expenses and is taken directly against the homeowner’s state tax burden.

10. Expenses that are Not Eligible Costs of acquiring the building or interest therein Enlargement costs which expand the total volume of the existing building. (Interior remodeling is not considered enlargement.) Expenditures attributable to work done to facilities related to a building such as parking lots, sidewalks and landscaping. New building construction costs Appliances & Cabinets Carpeting (if tacked in place and not glued) Decks (not part of original building) Demolition costs (removal of a building on property site) Enlargement costs (increase in total volume) Fencing & landscaping Feasibility studies Financing fees Furniture Leasing expenses Moving (building) costs (if part of acquisition) Outdoor lighting remote from building Parking lot Paving Planters Porches and Porticos (not part of original building) Retaining walls Sidewalks Signage Storm sewer construction costs Window treatments

11. Eligible Rehabilitation Expenses Any expenditure for a structural component of a building. Structural components include: –walls –partitions –floors –ceilings –Permanent coverings such as paneling or tiling –windows –doors –components of central air conditioning or heating systems –plumbing and plumbing fixtures –electrical wiring and lighting fixtures –chimneys –stairs –escalators –elevators –sprinkling systems –fire escapes –other components related to operation or maintenance of the building Construction period interest and taxes Architect fees Engineering fees Construction management costs Reasonable developer fees Other fees paid that would normally be charged to a capital account

12. Certified Rehabilitation IRS code: “certified by the Secretary of the Interior as being consistent with the historic character of the property.” NPS regulations: Secretary of the Interior’s Standards for Rehabilitation NPS technical guidance publications: Guidelines for Rehabilitating Historic Buildings

13. Rehabilitation process Returns a property to a state of utility through repair or alteration Makes possible a contemporary use Preserves portions and features that are significant to property’s historic, architectural and cultural values

14. Exterior Interior

15. Features Spaces

16. Restoration not required

17. Fundamental Character

19. Additions

20. Removal

21. Replacement

22. Treatments

23. Secretary of the Interior’s Guidelines

24. Applying the Standards HierarchyHierarchy Condition/IntegrityCondition/Integrity Cumulative wholeCumulative whole 2. “...features and spaces that characterize a property...” 5. & 9. also use “characterize the property” 6. “... replacement of a distinctive feature...”

25. Hierarchy Hierarchy: location, visibility, architectural treatment

26. Integrity Condition

27. Cumulative effect

28. Small change in important space

29. Substantial change to primary space

30. Change in secondary space

31. Substantial change to secondary elevation

35. Make additions compatible

37. Repair rather than replace

38. Document deterioration

40. Replace to match

43. Acquired significance

44. Replacement of non- historic materials

48. Certification Process Three-part application Submission made through SHPO Thirty-day review clock at both SHPO and NPS Fee for review of Part 2 and Final Certification

49. Part 1- Evaluation of Significance Needed for: Contributing building within a district Multiple buildings in an individual listing Preliminary determination of eligibility: individual or district Not required for individually listed building

51. Covered facade

52. Part 2 - Description of Rehabilitation Should be submitted prior to beginning work May be amended Phasing must be determined before work begins

53. Submission - Part 2 Description of work –Written description governs, supplement with drawings –Cover all work but focus on significant changes True before condition photos –Keyed to a drawing or descriptively labeled Supplemental information when needed –Mock-ups, samples, specifications, sight-line studies

54. Request for Certification of Completed Work All proposed work must be completed Photographs showing all aspects of project Evaluation but not certification of individual phases