State Historic Tax Credits - Rule Changes

[Steven Wilke-Shapiro]

Just a quick note to let everyone know that the final administrative rule changes to the State Historic Rehabiliation Tax Credit program did not include the proposed five year holding period.  Thank you to the people who contacted the Iowa Historical Society to voice their concern.  Staff was very receptive to the potential for this proposed rule change to negatively affect historic rehabilitation efforts in economically distressed districts.  I look forward to making my first application as a "developer" very soon!

In suggesting the holding period, staff were looking to deal with the problem of owners performing non-compliant work once they had received the tax credits.  It doesn't make much sense to significantly subsidize a historic rehabilitation that only lasts for four months!  They are now exploring other options such as deed restrictions that will also address the potential problem.

If anyone can think of other effective ways of securing the state's investment in historic rehabilitation, please discuss here or contact me directly... I'll compile and suggestions and forward to Jack Porter (who also is on this group).

At some point, I hope to have a DSMRC meeting dedicated to Historic Tax Credits - in a nutshell: buildings that are either individually listed on the National Register of Historic Places, contributing resources in a designated historic district, or located in an approved local historic district AND are undergoing historic rehabilitation work qualify for state tax credits of up to 25% of the qualifying rehabilitation costs.  This tax credit can be applied to an individual's state income tax liability and/or refunded to the taxpayer and/or sold.

For more information, contact Jack Porter at Jack....@iowa.gov or Beth Foster Hill at Beth....@iowa.gov.

Thanks,
Steve Wilke-Shapiro
Des Moines Rehabbers Club organizer.