Looking for help keeping a historic home looking its best?
If your municipality has a historic home preservation program, keep in that there are existing programs—mainly through the State of Illinois and the federal government—that are beneficial to the property owner.
1. The Property Tax Assessment Freeze for Historic Residences (owner-occupied, single family homes, condominiums, cooperative unit, or multi-family building up to 6 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
2. Federal Rehabilitation Tax Credit is available for rehabilitating an income-producing building.
This dollar-for-dollar Federal income tax credit equal to 20% of the construction costs may be used by the building owner or sold to a tax credit investor. The minimum investment is 100% 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
— H/T to Mike Scobey with the Illinois REALTORS® for providing the information.