Historic Structure
Definition
A historic structure is a building that is officially recognized for its historic significance and, as such, receives special income tax status. This designation encourages the building’s rehabilitation and discourages its demolition or substantial alteration. Owners of certified historic structures may be eligible for a 20% tax credit on qualified rehabilitation expenses, incentivizing the preservation and restoration of such properties.
Examples
- Old Office Building Restoration: An aging office building in a downtown area was identified as a certified historic structure. The owner decided to undertake a comprehensive restoration project to preserve its historical features while upgrading its facilities. The rehabilitation project enabled the owner to claim a 20% tax credit on qualified expenses.
- Historic Mansion Conversion: A historic mansion was being considered for demolition to make way for new development. Instead, the ownership chose to convert the mansion into a boutique hotel, leveraging the 20% tax credit available for rehabilitating certified historic structures. This not only preserved the mansion but also brought new utility to the community.
- Adaptive Reuse of a Factory: An old factory, recognized for its historical importance in the city’s industrial development, was rehabilitated and repurposed as a mixed-use facility with residential and commercial spaces. The historic status helped secure tax credits, significantly reducing the financial burden of renovation.
Frequently Asked Questions (FAQs)
Q1: What qualifies a building as a historic structure? A1: A building qualifies as a historic structure if it is listed or eligible for listing in the National Register of Historic Places or determined to be of historic significance by the Secretary of the Interior.
Q2: How can I get my property recognized as a historic structure? A2: To have your property recognized as a historic structure, you need to go through the process of listing it on the National Register of Historic Places or receiving state or local historic designation, which could involve providing detailed documentation demonstrating the historical significance of the property.
Q3: What types of rehabilitation expenses qualify for the 20% tax credit? A3: Qualified rehabilitation expenses typically include costs related to the building’s structure and systems such as roofs, windows, heating systems, and interior fixtures that maintain or restore the historic character of the building.
Q4: Are there restrictions on how a historic structure can be altered? A4: Yes, alterations to a historic structure often need to comply with guidelines established by the Secretary of the Interior’s Standards for Rehabilitation to retain eligibility for tax credits and other historic preservation incentives.
Q5: Can I demolish a part of a historic structure if it’s necessary for rehabilitation? A5: Demolishing a significant part of a historic structure may jeopardize its historic status and eligibility for tax credits. It’s best to work with preservation specialists to explore alternatives.
Related Terms
- Certified Historic Structures: Buildings certified by the Secretary of the Interior as contributing to the historical significance of a National Register Historic District.
- National Register of Historic Places: The official list of the nation’s historic places worthy of preservation, maintained by the National Park Service.
- Rehabilitation: The process of returning a property to a state of utility through repair or alteration that makes possible an efficient contemporary use while preserving those portions or features of the property which are significant to its historic, architectural, and cultural values.
- Tax Credit: A component in the tax code that provides a deduction meant to encourage certain activities, such as the rehabilitation of historic structures.
- Historic Preservation: The act of preserving, conserving, and protecting buildings, objects, landscapes, or other artifacts of historical significance.
Online Resources
- National Park Service - Historic Preservation
- National Trust for Historic Preservation
- Internal Revenue Service (IRS) - Historic Preservation Tax Incentives
References
- National Park Service. “Historic Preservation Tax Incentives.” National Park Service, 2022.
- Internal Revenue Service (IRS). “Tax Benefits for Preserving Historic Structures.” IRS, 2022.
- National Trust for Historic Preservation. “Preservation Tax Incentives.” National Trust for Historic Preservation, 2022.
Suggested Books for Further Studies
- “Preserving Historic New England: Preservation, Progress, and the Past” by James Lindgren
- “The Past and Future City: How Historic Preservation is Reviving America’s Communities” by Stephanie Meeks
- “A Richer Heritage: Historic Preservation in the Twenty-First Century” edited by Robert E. Stipe
- “Historic Preservation: An Introduction to Its History, Principles, and Practice” by Norman Tyler, Ted J. Ligibel, and Ilene R. Tyler
