If your municipality has a historic home preservation program, keep in mind that existing programs — mainly through the State of Illinois and the federal government — are beneficial to the property owner.
The Property Tax Assessment Freeze for Historic Residences (owner-occupied, single family homes, condominiums, cooperative unit or multi-family building up to six units) freezes property taxes over a 12-year period after rehabilitation of the property. There is a minimum investment of 25 percent of the property’s market value, as determined by the County Assessor. The building must be a certified historic structure, and the work must meet the Secretary of Interior’s Standards for Rehabilitation. The program is administered by the Illinois Historic Preservation Agency. For more information, go to: www.illinois.gov/ihpa/Preserve/Pages/taxfreeze.aspx
Federal Rehabilitation Tax Credit is available for rehabilitating an income-producing building. This dollar-for-dollar Federal income tax credit equal to 20 percent of the construction costs may be used by the building owner or sold to a tax credit investor. The minimum investment is 100 percent of the building’s “adjusted basis”; that is, the purchase price minus the land cost and depreciation, plus prior improvements. The building must be a certified historic structure. This program is also administered by the Illinois Historic Preservation Agency. For more information, go to: www.illinois.gov/ihpa/Preserve/Pages/taxcredits.aspx