Historic Rehabilitation Tax Credits

Federal tax law provides tax credits for up to 20 percent of qualified rehabilitation costs on historic projects. Many states have a similar program for credits of 25 percent or more of qualified costs. We help our clients through the process from the planning stages of the historic project through the disposition of the building, enhancing the amount of tax credits earned and avoiding delays in receiving important benefits. We coordinate our services with other members of the team such as the architect, contractor and historian.

MarksNelson provides the following real estate services:

• Consulting services – Record keeping set-up for project accounting; guidance on what qualifies as eligible costs and how to enhance credits in specific areas such as electrical wiring and mechanical systems; responding to state agencies regarding costs submitted for tax credits.
• Financial models– Developing a financial model for internal use, bank financing or equity investors.
• Cost certification– An audit of the project costs is required by most state agencies and by all tax credit investors.
• Tax return preparation – Specialized services for the reporting of federal and state tax credits often required by federal investors for the five-year tax credit period.
• Financial statement audits – Preparation of an annual financial statement audit during the five-year tax credit period if required by federal tax credit investors.