Historic Tax Credits are Back!

Sec Kluttz in Kannapolis on her 2015 campaign to restore the state historic tax credit.

Today, Governor Pat McCrory signed the budget that reinstated the Historic Preservation Tax Credits into law.

Big thanks go out to to Secretary Susan Kluttz and the team at the Department of Natural and Cultural Resources and all the legislators who supported this economic development and jobs tool.
This is an incredible accomplishment for the state and wouldn’t have been possible without the tremendous support of historic preservation advocates!

Historic Tax Credits Details

Rates:
INCOME-PRODUCING – COMBINES COMMERCIAL & MILL
Reduces base credit rate to 15%
+5% for mills ($3M spending requirement has been eliminated)
+5% for economically distressed counties

RESIDENTIAL
Reduces to 15% credit
Applies a cap per project QRE @ flat project ceiling ($150K)
$10,000 minimum over 24 months

Caps:
INCOME-PRODUCING – COMBINES COMMERCIAL & MILL
$0 to $10M base rate
$10M to $20M base rate reduced by 5%
Hard cap at $20M

RESIDENTIAL
$150,000 cap residential
Installments:  Can now be claimed all in one year. All credits claimable once building is placed into service with a 10-year carry forward.
Taxes Claimable Against:
Combined credits claimable against income taxes, gross premium taxes and corporate franchise taxes.