Take Credit for Heritage Restorations

For a long time heritage properties suffered from adilapidated. They can be applied to all kinds of work
bum rap. Investors were reluctant to purchase aon the building including, "architectural and engineering
piece of the past because of the cost of dragging itfees, site survey fees, legal expenses, development
into the present. Fortunately, in the last few decades,fees, and other construction-related costs".
older properties have been rightfully recognized forIn a further effort to encourage folks to restore
their beauty and historical value and have become aheritage properties, the Maryland Historical Trust
hot commodity. Yes, there is often work to be doneadministers the state Heritage Preservation Tax
on heritage buildings, but there are also financialCredit program, which offers Maryland income tax
incentives for restoring these properties to theircredits for 20 per cent of the qualified capital costs.
former glory. After all, restorations createThese credits can be used towards interior and
employment and the finished product is culturallyexterior rehabilitation, certain landscaping projects,
significant, making it a draw for tourism and improvingplumbing and electrical upgrades, architectural fees
the quality of a neighborhood over all.and more.
In fact, property owners in Maryland can benefitIn addition, the Maryland Historical Trust offers
from potential federal, state and local tax credits forlow-interest rehabilitation loans to people who use the
improvements and renovations. Maryland is seriousHeritage Preservation Tax Credit Program. This loan
about encouraging people to restore historic homescan be used to acquire, restore or rehabilitate
or income-producing buildings. If you don't live inproperty making it easier for you to do more with
Maryland don't worry - the state credits have noless.
residency requirements, making it an equalWithin Maryland, many counties and municipalities also
opportunity investment opportunity. If you have aoffer property tax credits and/or a freeze on tax
heritage property outside of Maryland you may stillassessments (for up to ten years) to encourage
be eligible for the federal program. With all of thesepeople to rehabilitate historic buildings. Again, these
incentives, be sure to check the programprograms apply to homes and income-producing
requirements before starting any work.buildings designated as historic buildings.
Whether you are a home owner or a long-term leaseAlthough some (but not all) of these incentives
holder of an income producing certified heritagerequire you to maintain ownership of your property
structure, you can apply for a Federal Rehabilitationfor a time in order to enjoy the full tax benefits, you
Tax Credit of up to 20 per cent of a restoration. Ifare significantly increasing both the appeal and the
your property has not been certified, you can applyvalue of your home. When it does come time to sell,
to have it certified or take advantage of the 10you will see the fruits of your labor. In the meantime
percent credit for non-historic, non-residential buildingsyou can enjoy the beauty of your heritage property,
put in service before 1936. These credits have beenknowing that you have helped preserve a piece of
used to revitalize buildings that were seriouslyhistory for future generations to enjoy.