The Liles Building (1927), located in the downtown Anniston historic district, shown in before (left) and after (right) photos, received certification of Phase 1 exterior work in 2012 and continues to be rehabilitated for office use. (Both photos David B. Schneider)
How many of you drive past vacant and deteriorating historic buildings in your downtown or neighborhood? Those of us who love historic buildings believe there are far too many of them out there that need attention, resources, and a new life. During our country’s bicentennial, our national leaders felt the same way and were concerned about the loss of America’s heritage when they saw a decline in our downtowns and older neighborhoods. At the time it seemed that people had abandoned their town centers for shiny, new suburbs and shopping centers. As a result, Congress created tax incentives in 1976 to encourage private investment in historic places.
The Federal Historic Preservation Tax Incentives program is still around today and provides a 20 percent tax credit for people who restore buildings listed in the National Register of Historic Places. Owners who rehabilitate their historic building according to the Secretary of the Interior’s “Standards for Rehabilitation,” and use the property for income-producing purposes, are eligible for the incentives. Work on the historic buildings must be substantial, which means that project expenditures must exceed the greater of $5,000 or the adjusted basis of the property, and they must be certified by the National Park Service through a three-part application process. If successful, the owner earns a tax credit that equals 20 percent of eligible rehabilitation expenditures. The tax credit is a dollar-for-dollar reduction of federal taxes owed.
One of the most important aspects of this program is that historic preservation is the focus. Owners must understand why their building is significant and preserve those historic, character-defining features and materials that make it worthy of a spot on the register in the first place. The new use for the structure should be a good fit for the historic building and not require altering it to such a degree that it loses its historic character. “Repair rather than replace” is the mantra when making decisions about details such as windows and plaster. Systems upgrades and modernizations are a part of any rehabilitation project, but they must be carefully planned and installed so that features, materials, and spaces are preserved. These projects also require retention of the primary, or most public, spaces in a building. For example, in a downtown commercial building, this might be the space as seen through the storefront. Every building is different, with its own unique characteristics, and each individual project requires a respect and understanding of the historic building to achieve a successful rehabilitation. Since preservation is the key to this program, owners should familiarize themselves with the “Standards for Rehabilitation” before attempting any rehabilitation project.
Those interested in this federal program must read and understand the government’s requirements for participants as described by both the National Park Service and the Internal Revenue Service. It is highly recommended that interested building owners contact the Tax Incentives Coordinator at the Alabama Historical Commission during the early planning stages of their project. During the past ten years, building owners have been approved for tax credits on $158 million in investment in ninety-seven projects throughout Alabama. These projects have saved historic places that are important to our state, created countless high-skilled and higher-paying jobs, increased property values, and generated tax revenue. The original intent of this incentive to promote historic preservation and spur revitalization has met the test.
Detailed information about Historic Preservation Tax Incentives is available at the National Park Service website: http://www.nps.gov/tps/tax-incentives.htm. Materials and guidance are also available from the Alabama Historical Commission at the tax credit section of our website: https://ahc.alabama.gov/ or by contacting Chloe Mercer at chloe.mercer@ahc.alabama.gov.
This feature was previously published in Issue 109, Summer 2013.
About the Authors
Chloe Mercer is the coordinator of the Federal Historic Preservation Tax Incentive Program at the Alabama Historical Commission. Robert Gamble, standing editor of the “Southern Architecture and Preservation” department of Alabama Heritage, is senior architectural historian for the Alabama Historical Commission.
One of the most important aspects of this program is that historic preservation is the focus. Owners must understand why their building is significant and preserve those historic, character-defining features and materials that make it worthy of a spot on the register in the first place. The new use for the structure should be a good fit for the historic building and not require altering it to such a degree that it loses its historic character. “Repair rather than replace” is the mantra when making decisions about details such as windows and plaster. Systems upgrades and modernizations are a part of any rehabilitation project, but they must be carefully planned and installed so that features, materials, and spaces are preserved. These projects also require retention of the primary, or most public, spaces in a building. For example, in a downtown commercial building, this might be the space as seen through the storefront. Every building is different, with its own unique characteristics, and each individual project requires a respect and understanding of the historic building to achieve a successful rehabilitation. Since preservation is the key to this program, owners should familiarize themselves with the “Standards for Rehabilitation” before attempting any rehabilitation project.
Those interested in this federal program must read and understand the government’s requirements for participants as described by both the National Park Service and the Internal Revenue Service. It is highly recommended that interested building owners contact the Tax Incentives Coordinator at the Alabama Historical Commission during the early planning stages of their project. During the past ten years, building owners have been approved for tax credits on $158 million in investment in ninety-seven projects throughout Alabama. These projects have saved historic places that are important to our state, created countless high-skilled and higher-paying jobs, increased property values, and generated tax revenue. The original intent of this incentive to promote historic preservation and spur revitalization has met the test.
Detailed information about Historic Preservation Tax Incentives is available at the National Park Service website: http://www.nps.gov/tps/tax-incentives.htm. Materials and guidance are also available from the Alabama Historical Commission at the tax credit section of our website: https://ahc.alabama.gov/ or by contacting Chloe Mercer at chloe.mercer@ahc.alabama.gov.
This feature was previously published in Issue 109, Summer 2013.
About the Authors
Chloe Mercer is the coordinator of the Federal Historic Preservation Tax Incentive Program at the Alabama Historical Commission. Robert Gamble, standing editor of the “Southern Architecture and Preservation” department of Alabama Heritage, is senior architectural historian for the Alabama Historical Commission.
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