Historic preservation incentives for property owners

This historic home is located in Joliet (Bigstock Images).

This historic home is located in Joliet. (Bigstock Images)

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

Bigstock Images

Bigstock Images

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

 

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About Mike Scobey

Mike Scobey is Assistant Director – Advocacy and Local Issues. He supervises and coordinates the IAR Issue Advocacy Program which includes the coordination and management of Issue Advocacy campaigns, inside research, outside research and polling, legal analyses of local government proposals and public relations/education projects. He is responsible for the production of educational and advocacy pieces related to the local government affairs program. He also oversees the local Governmental Affairs Director (GAD) program which includes serving as a liaison to the local GADs and other staff on issue development and prioritization and overall campaign design. He provides staff support to the Commercial/Industrial/Investment Committee.

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