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Ragan says legislature expanded opportunities for Iowans to use State Historic Tax Credits

Senator Amanda Ragan
Senator Amanda Ragan

From Sen. Amanda Ragan –

Efforts to fix up Iowa’s historic properties and business districts got a boost this year. During the 2013 session, the Legislature expanded opportunities for Iowans to use State Historic Tax Credits.

This program attracts private investment to neighborhoods, creates jobs, enhances property values and develops affordable housing by providing an income tax credit worth 25 percent of qualified rehabilitation costs for historic buildings. To date, State Historic Tax Credits have leveraged more than $1 billion in rehabilitation costs by private investors in Iowa communities.

Senate File 436 improves this popular program through the following:

1. The changed definition of commercial property. Previously, Iowa law categorized property as residential, barn or commercial. We now have only two categories: commercial and other than commercial property. This will allow more properties that do not earn income to qualify for the tax credit.

2. SF 436 helps more small projects qualify for tax credits by decreasing the dollar amount for the project cost. For commercial property projects, the amount to qualify for the tax credit is now the lesser of either 50 percent of the value of the building or $50,000. Buildings other than commercial, such as historic churches and other nonprofits, qualify for the tax credit if the project is 25 percent of the value or $25,000.

3. A raised cap on projects which qualify for the Small Project Fund. Projects with expenses as high as $750,000 now qualify as “small” and may be submitted and funded at any time of year.

4. Increasing the length of time available to complete a project by offering a 12-month extension if more than half of the qualifying rehabilitation funds have been spent within the first 60 months of the project.

For complete details on State Historic Preservation Tax Credits, visit http://tinyurl.com/SHPTIP.

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