By Scott Saxton,
The Wilmington area is flush with historic communities. One thing to keep in mind when purchasing properties that fall into historic standards is that you could be eligible for a state tax credit for any restoration work. But you have to follow a process.
A broker at Just For Buyers Realty recently attended a meeting regarding the North Carolina State Historic Rehabilitation Tax Credit Program. Eligible homeowners can receive as much as a 15% tax credit for qualified rehabilitation projects.
There are a few things to consider with this program:
- The rehabilitation work needs to exceed $10,000, but no more than $150,000, within a 24-month period.
- The maximum tax credit is $22,500.
- You have to meet The Secretary of the Interior’s standards for rehabilitation to qualify for the tax credit.
- You should consult with the State Historic Preservation Office prior to beginning the project, because you want to make sure you follow the guidelines. A big thing to remember is to take a lot of “before” pictures of the rehab area. You will have to show what it looked like prior to restoration to be eligible.
Learn more about the Historic Rehabilitation Tax Credit program at the following address: https://www.ncdcr.gov/about/history/division-historical-resources/nc-state-historic-preservation-office/restoration-2
If you are looking for historic properties or any other property for purchase, please consider the experienced and knowledgeable team at Just For Buyers Realty to assist in the process.