Historic Tax Credit Cap Increased to $50m

Victorian Home in Danger of Demolition: This home is on the City's "Public Nuisance" list and may be demolished if deficiencies are not corrected in a timely manner.Victorian Home in Danger of Demolition: This home is on the City's "Public Nuisance" list and may be demolished if deficiencies are not corrected in a timely manner.The Iowa legislature recently passed a bill more than doubling the Iowa historic rehabilitation tax credit. The program had previously been capped at $20 million; it is now capped at $50 million - 10% of which is dedicated specifically to "small" projects of under $500,000.

As a revitalization stimulus and economic engine, historic tax credits are an excellent investment. Not only do they leverage significant private capitalized investment, but they also encourage preservation of historic buildings. Because the tax credits are not issued until the project is complete and put "in use", the economic return to the state actually precedes the tax credit payout.

Historic tax credits can be used throughout the state in both urban and rural areas. In urban areas, qualifying buildings can be located in a designated historic district, individually nominated, or eligible for nomination. In rural areas and small towns, bridges, barns, and other potentially eligible properties may qualify for the credits.

While large rehabilitation projects often steal the limelight, even a privately owned single family home can qualify. With the expanded credit, I look forward to a new professional infrastructure developing to help shepard projects of all sizes through the process: architects, engineers, tax credit consultants, and accountants.

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