Historic Preservation Incentives

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Historic Preservation Incentives
Aimee E. Flinn Preservation Specialist City-County
of Spokane Historic Preservation Office
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Objectives

• Identify and understand the various historic
  preservation incentives available
• Know the process for applying and receiving
  Special Valuation, the property tax incentive

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Historic Preservation Process

• 1. Register Historic Building.
• 2. Renovate in compliance with Secretary of the
  Interiors Standards for Rehabilitation.
• 3. Apply for Financial Incentives (Investment Tax
  Credit, Conservation Easement, Special Valuation,
  Building Code Relief)

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Incentive Federal Investment Tax Credit

• A credit taken off the owners (or partners)
  federal Income Tax (Federal Incentive).
• Established 1976
• Benefit 20 tax credit for the substantial
  rehabilitation of historic buildings for income
  producing purposes
• Qualifications National Register,
  income-producing, and compliance with the
  Secretary of the Interiors Standards for
  Rehabilitation.

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http//www.cr.nps.gov/hps/tps/tax/incentives/index
.htm
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Incentive Conservation/Facade Easement

• A legal agreement whereby the private owner gives
  up certain privileges with regard to controlling
  the appearance of his real property (Local
  Option).
• Established In use in Spokane since 1981.
• Benefit Preservation easements can offer
  potentially significant federal income, estate
  and gift tax consequences.
• Qualifications Listed in National Register of
  Historic Places.

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Incentive Building Code Relief

• Relief from building code requirement may be
  granted to historic properties by local code
  enforcement officers (Spokane Incentive).
• Established 1981 (In Spokane)Benefit Relief
  from code requirements can be of economic value
  as a result of a lesser level of compliance.
• Qualifications Local Register listing and
  rehabilitation must meet the Secretary of the
  Interiors Standards for Rehabilitation.

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Incentive Special Valuation Property Tax
Incentive

• Special Valuation of historic property amounts to
  property tax abatements for historic property
  owners who have recently rehabilitated historic
  buildings (Washington State Incentive).
• Established 1985
• Benefit Property tax assessment is reduced by
  the dollar amount of rehabilitation expenditures
  for ten years.
• Qualifications Local or National Register must
  meet the Secretary of the Interiors Standards
  for Rehabilitation.

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Special Valuation Property Tax Incentive Steps
to take to qualify

• Complete a Determination of Eligibility (DOE)
  form
• List the property on the local historic register
• Apply for design review
• Complete rehab
• Apply for Special Valuation

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Special Valuation Property Tax Incentive How
does it work?

• Example
• Assessed improvement value of property 100,000
• Minimum to qualify for Special Valuation 25,000
• Reduced taxable amount 75,000

• Property owner spends a minimum of 25 of the
  assessed improvement value
• Dollar-for-dollar amount is deducted off the
  taxable amount of the property taxes
• Reduced annual property tax is seen two years
  after application is approved

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Questions?
City-County of Spokane Historic Preservation City
Hall, Third Floor 808 W. Spokane Falls
Blvd. Spokane, WA 99201 [phone]
www.historicspokane.org