Governor Roy Cooper’s signing of the North Carolina State Budget for 2022 on November 18th, 2021 is good news for historic preservation interests. The new budget allowed for expansion and extension of our state’s Historic Tax Credits.
Historic Rehabilitation Tax Credits were extended to January 1, 2030, assuring developers and preservation planners that this important tool will remain functional through the end of the decade. The credits were expanded to include a 5% bonus if the building was originally used for education purposes, is used for the same purpose, and will remain used for an educational purpose.
Credits for income-producing historic structures can be as high as 15% of total project costs if project expenses remain below $10 million. The percentage drops to 10% when total project costs fall between $10 million and $20 million. A 5% bonus as awarded to projects not exceeding $20 million in development tier one and two counties, such as Guilford County.
Non-income-producing properties (privately owned houses) remain valued at 30% of project costs to thirty percent (30%) of approved rehabilitation expenses. To qualify for the credit, the taxpayer’s rehabilitation expenses must exceed twenty-five thousand dollars ($25,000) within a 24-month period.
Historic Tax Credits are important re-investment tools in North Carolina’s older cities such as Greensboro and High Point, where National Register Historic Districts allow hundreds of houses to be eligible for non-income investment incentives. Downtowns and older industrial sites such as Market Square and Revolution Mill depend on credits for fiscal viability, as these projects are often redeveloped on thin profit margins. The credits have moved a long list of formerly vacant property back on Guilford County tax rolls, including the J. H. Adams Inn and the Cascade Saloon.
Since the code was enacted in 1996, North Carolina has earned a national reputation for our useful and productive tax credit legislation for historic preservation investment. Thanks to our legislators for their bi-partisan support of reinvestment in history, culture, and economic development in the Old North State.
Written by Benjamin Briggs
Preservation Greensboro contributes a key role in the growth of Greensboro’s economy and vitality through tourism, reinvestment, and place-making. With diverse initiatives that help you to restore, explore, and connect with your community, Preservation Greensboro provides a voice for revitalization, improved quality of life, and conservation of historic resources for future generations. Are you a member yet? Learn more about Greensboro’s only member-supported preservation organization by exploring our website or joining our Facebook page. Please join us today!