| The State Historic Preservation Office (SHPO) of the State
Historical Society of Iowa administers the State Historic
Preservation Tax Incentive Program, and participates
in the certification process for the Federal Historic
Preservation Tax Incentives and county Historic Property
Tax Exemption programs. All of these programs encourage
the reuse of historic properties while retaining their
character-defining features. Ultimately, each of these
programs contributes to the revitalization and preservation
of historic properties across the state.
Federal
Historic Preservation Tax Incentives Program
20%
or 10% of qualified rehabilitation costs
Description:
20% of qualified rehabilitation costs are available
as a credit against federal income taxes on income-producing
historic properties. Rehabilitation work on historic
properties must be “substantial” (an IRS
test) and meet the Secretary of the Interior’s
Standards for Rehabilitation and Guidelines for Rehabilitating
Historic Buildings. Applications and photos must be
reviewed by the SHPO and be approved by the National
Park Service.
Eligibility
Requirements: Properties must be listed on
the National Register or be evaluated as National Register
eligible and then listed within 30 months after claiming
the credit on IRS tax forms. (A 10% tax credit is also
available for non-historic, non-residential, income-producing
properties built before 1936. These properties can neither
be listed on the National Register nor be a contributing
resource in a National Register-listed historic district.)
Additional
information is found at www.iowahistory.org/preservation/financial_assistance/federal_tax_credit/
federal_tax_credit.html
Statewide Historic Projects
Description: 25% of
qualified rehabilitation costs are available as a credit
against the owner(s) state income taxes. Properties
do not need to be income-producing. The SHPO cannot
reserve credits for more than three years into the future.
For a residential property or barn constructed before
1937 before rehabilitation, the cost of a qualified
rehabilitation project must exceed either $25,000 or
25% of the fair market value (less the land value) -
whichever is less. For commercial properties, the rehabilitation
project must exceed 50% of the fair market value of
the property (less the land value) before rehabilitation.
Rehabilitation work must meet the Secretary of the Interior’s
Standards for Rehabilitation and Guidelines for Rehabilitating
Historic Buildings.
Eligibility Requirements:
Properties must be listed on or eligible for listing
on the National Register of Historic Places or be barns
constructed before 1937.
Cultural
and Entertainment District Projects
Description: This program
uses the same description, eligibility requirements
and regulations as the statewide program described above
although the funding is from a separate allocation for
projects located within Cultural and Entertainment Districts
(CED) certified pursuant to section 303.3B or Great
Places agreements pursuant to section 303.3C.
Eligibility Requirements:
In addition to the eligibility requirements for the
state wide program above, properties must be located
in a CED or specified in a Great Places agreement.
Small
Projects under $500,000
Description: This program
uses the same description, eligibility requirements
and regulations as the statewide program described above
although the funding is from a separate allocation reserved
for small projects which have qualified rehabilitation
costs less than $500,000.
Eligibility Requirements:
In addition to the eligibility requirements for the
state wide program above, properties must have qualified
rehabilitation costs that do not exceed $500,000. The
entire rehabilitation project must meet the Secretary
of the Interior’s Standards for Rehabilitation
and Guidelines for Rehabilitating Historic Buildings.
Additional information can be
found at:
http://www.iowahistory.org/preservation/financial_assistance/financial_assistance.html
Temporary
Historic Property Tax Exemption
4-year “freeze” on property
tax increases, then 25% increase per year to adjusted
value after rehabilitation
Description:
Local property tax incentive for the sensitive, "substantial
rehabilitation" of historic buildings. Property
taxes remain the same for four years followed by increases
of 25% per year for the following four years. Two applications
are required – one from SHPO and one from the
county assessor.
Eligibility
Requirements: Properties must be listed on
or eligible for listing on the National Register, contributing
to National Register or local historic districts, or
designated by a county or municipal landmark ordinance.
The
property must also be eligible based on the specific
county's priority list for that tax year. The County
Board of Supervisors will establish priorities for which
an exemption may be granted and will annually designate
real property in the county for a historic property
tax exemption. A public meeting must be held, with notice
given, at which the proposed priority list will be presented.
Additional
information is found at:
www.iowahistory.org/preservation/financial_assistance/state_property_tax_exemption
/property_tax_exempt.html
Other
SHSI Grants
Other grant programs administered by the State Historical
Society of Iowa may also be used to preserve historic
properties. To find out more, go to
www.iowahistory.org/grants/shsi_grants/shsi_grants.html.
Contact
Elizabeth (Beth) Foster Hill
Tax Incentive Programs Manager/National Register Coordinator
Department of Cultural Affairs
600 E. Locust Street
Des Moines, IA 50319-0290
(515) 281-4137
Beth.Foster@iowa.gov
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