Historic Hotels Tax Credits Incentive
Tax Credits Incentive
Historic hotels may realize further incentives to assist in the funding of rehabilitation. The federal Historic Tax Credit (HTC) program was enacted in 1976 to encourage the preservation and rehabilitation of historically significant buildings.
Administered by the National Park Service and the Internal Revenue Services in partnership with State Historic Preservation Offices, the HTC program is the nation’s most effective program to promote historic preservation and community revitalization through historic rehabilitation.
HTCs provide supplemental funding for developers that rehabilitate certified historic landmarks and buildings into income-generating properties that create jobs and promote economic revitalization. Historic hotels are especially prime candidates for rehabilitation, further driving economic impact in downtown districts.
Current federal tax incentives for historic preservation were established by the Tax Reform Act of 1986 and include:
A 20 percent tax credit of Qualified Rehabilitation Expenditures (QREs) for the cost incurred during the rehabilitation of a certified historic structure for commercial purposes.
A 10 percent tax credit of QREs for the costs incurred during the rehabilitation of an older, non-residential building built before 1936 that is not listed as a certified historic structure.
In addition, Wisconsin offers a 20% tax credit historic rehabilitation, administered by the state, in addition to federal incentives.
HTC Qualification Criteria
The development property must be a certified historic structure, which can include:
A certified historic building listed in the National Register of Historic Places, which is the official list of the nation's districts, sites, buildings and structures in American history
A building located in a registered historic district and certified by the National Park Service as contributing to the historic significance of that district
An older, non-residential building built before 1936 that is not yet listed as a certified historic structure
Legendary Hotels possesses the expertise to maximize these valuable incentives, greatly reducing hotel debt.