Historic Preservation Tax Credits

Historic Preservation Tax Credits

The Process and Avoiding Common Problems

Charles E. Fisher

New York City, June 2009

National Park Service, Technical Preservation Services

• Projects approved – 36,000

• Investment of over $50 billion

• Repeat users

Success

It Is a Regulatory Program

• Not uncommon that there will be some required changes

• Submit your project for review early in the planning process

Who

• Administered by the National Park Service in conjunction with State Historic Preservation Offices (SHPO)

What

• Unlike most other historic preservation review processes, your entire project will be reviewed

• Interior and exterior work on the historic building/s

What•Any new construction on the site

•Parking

Where

• Most SHPO offices are located in the state capital

• National Park Service’s Technical Preservation Services is in Washington, DC

Two Certifications Are Needed

• Certified Historic Structure

• Certified Rehabilitation

Three-Part Historic Preservation Certification Application

Part 1—Evaluation of Significance

• Is my building historic?

Certified Historic Structure

• Individually listed in the National Register of Historic Places

• Contributes to a National Register historic district

• Contributes to a registered historic district

Certified Historic Structure

• For a certified property with multi-buildings, such as a mill complex or a former military base, only contributing buildings are eligible.

Preliminary Determinations

• Proposed individually listed National Register property

• Contributing building in a potential historic district

• Certified Historic Structure status must be obtained no later than 30 months after the building is placed in service

Applicant

SHPO NPS

Part 1 Review

paper trail

routine communication

Project Review

• Consult early on in the planning process with the SHPO

• Seek preliminary review from the National Park Service on potentially problematic issues prior to submission of Part 2 of the Application

• Most projects approved with conditions

Three-Part Historic Preservation Certification Application

Part 2—Description of Rehabilitation

• Does my proposed work meet the Secretary of the Interior’s Standards for Rehabilitation?

Secretary of the Interior’s Standards for Rehabilitation• 10 broad

principals of preservation

• Widely used by other agencies and organizations

• Only NPS issues certifications

Part 2 and 3 Reviews

paper trail

communication

project specific and/or state specific

Applicant

SHPO NPS

Three-Part Historic Preservation Certification Application

Part 3 Request for Certification of Completed Work (the last step)

• Submitted only after work is completed

• Issued by NPS only after completed work has met the Standards for Rehabilitation

Phased Advisory Letters

• Projects involving multiple buildings in a complex that are being rehabbed one at a time

• Large building rehabilitation being done in distinct phases

If Your Project is Denied

• First, try to resolve the issues

• Alternative is the Appeals Process

Avoiding Common Problems

• Start the process early in the project planning

• Consult early with the SHPO

• Get decisions in writing from NPS

Avoiding Common Problems— Part 2 Application

• Include both before (existing condition) plans and rehabilitation (after) plans

• Provide thorough photo documentation of the entire property in its before work condition— if shooting electronic images (good resolution), print on photo quality paper

• Authorize prepayment of processing fee charged by NPS

Avoiding Common Problems

• Check websites of SHPO and NPS for additional information on the application submission

• Keep track as to which set of architectural plans have been approved

• Use services of a preservation consultant as needed

• Realize each project is different

Special Considerations During The Current Economy

• Need to clearly establish what has been approved by NPS when there is a change in ownership during rehab

Special Considerations During Current Economy

• Dealing with large multiple building projects – phasing and financing

• Obtaining Part-3 (final) certification – tenant fit-out

State Incentives

• More than half of the states have tax credits or other incentives that can be piggybacked with the Federal tax credits

• Current budgetary pressure on state tax credit programs

For Additional Information

• NPS website is www.nps.gov/history/hps/tps• SHPO websites • To request copy of NPS Technical Preservation

Services Catalog of over 100 publications either email at NPS_HPS-info@nps.gov

• Or write Technical Preservation Services, National Park Service, 1840 C Street NW, Washington, DC 20240; email NPS_HPS-info@nps.gov