Created in 1996, Virginia’s Historic Rehabilitation Tax Credit (HRTC) program is one of the most effective incentives for preservation and revitalization of the state’s vast stock of historic structures. According to a study by Virginia Commonwealth University in 2013, over $3.9 billion has been invested through the Historic Rehabilitation Tax Credit program since 1996 resulting in the rehab of over 2,375 historic buildings throughout Virginia. The projects stimulated the economy in general, creating an estimated 31,000 jobs and generating $133 million in local and state tax revenue. State tax credits amount to 25 percent of total rehabilitation costs. When combined with the 20 percent Federal tax credit, this incentive makes many projects more financially feasible for property owners throughout Virginia. https://preservationvirginia.org/press-room/release/vcu-study-finds-historic-preservation-contributes-to-virginias-economy-by-u
Frazier Associates has been assisting property owners with design and application for historic tax credit projects since the program’s inception. The firm has witnessed the benefits of this valuable tool for historic preservation of both commercial and residential properties in communities large and small across the Commonwealth. Examples of some of these projects can be found on our website at https://frazierassociates.com/services/architecture/historic-rehabilitation-historic-tax-credits/
Learn More about the Tax Credits
Kathy Frazier recently presented a webinar to the Virginia Main Street community, “Credits Where Credits Are Due: Bringing Historic Tax Credits to Main Street” which explained how use of the tax credits can not only enhance the appearance of Main Street but can encourage further economic development in Virginia’s downtowns. Key points of the presentation included:
- How credits can be used to attract and incentivize downtown investment
- How to navigate the state and federal historic tax credit process
- A breakdown of the design guidelines of the Secretary of the Interior’s Standards for Rehabilitation
- Highlights of successful downtown tax credit projects in Virginia Main Street communities.
To see the webinar, click here: 2016 Tax Credit Webinar
Historic Rehabilitation Tax Credit Under Review
The AIA Virginia is a strong supporter of Virginia’s Historic Rehabilitation Tax Credit, noting “not only does the HRTC have a proven track record for stimulating economic growth through private investment, it helps to preserve Virginia’s cultural heritage for future generations”. This important incentive is currently under review by the Virginia General Assembly’s Joint Subcommittee to Evaluate Tax Preferences. The AIA, along with a coalition of twelve other organizations, are working to educate legislators on the benefits of the program in an effort to keep the credits in place. To find out more about this effort go to: https://www.aiava.org/advocacy_news/historic-rehabilitation-tax-credit-threatened/
Contact Frazier Associates for more information about the state and federal historic rehabilitation tax credits, and to see if your building might qualify.
