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Historic Preservation Incentives For
Private Owners
The Illinois Historic Preservation
Tax Credit Program provides a state income tax credit equal to 25% of a
project’s qualified expenditures to owners of certified historic structures
located within River Edge Redevelopment Zones (Aurora, East St. Louis, Elgin,
Rockford and soon Peoria) who undertake certified rehabilitations during the
taxable year.
For information on the current
program, administered jointly by the Department of Commerce and Economic
Opportunity (DCEO) and the Illinois Historic Preservation Agency (IHPA), go to:
www.illinoishistory.gov/PS/IHPATCP.HTM.
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% the property's market value, as determined by the County
Assessor. The building must be a certified historic structure.
To learn more …
A 20% 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.
Tax Credit Projects PDF.
To learn more …
A 10% Federal Rehabilitation Tax Credit is available for rehabilitating
an income-producing, non-residential building built before 1936. (This is NOT
for properties listed on the National Register of Historic places or in local
landmark districts). This dollar-for-dollar Federal income tax credit equal
to 10% of the construction costs. 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. Use IRS form# 3468.
To learn more …
Rehabilitation of a Barn or farm building? Take a look at section 179 of
the “Farmers Tax Guide” (publication 225) for tax deduction information. IRS
form #4562 “Depreciation Deduction.” One can deduct the cost of rehabilitating a
single-purpose agricultural structure, up to $25,000 in 2003.
www.irs.gov (also see 10% Federal
Rehabilitation Tax Credit).
A Preservation Easement Donation is a one time charitable, federal income
tax deduction equal to the appraised value of the preservation easement. A
Preservation Easement is a legal agreement which assigns the right to review and
approve alterations to a qualified non-profit organization for the purpose of
preserving the property in perpetuity. Property must be a certified historic
structure on the National Register of Historic Places, individually listed,
contributing to a district, or contributing to a local landmark district.
Landmarks Illinois takes Easement donations. Call us at 312-922-1742.
For those with farms or concerned with conserving open space there are
Conservation Easements. Similar to the preservation easement, it leaves land
in private ownership and can result in an income tax reduction. It may also
reduce property and estate taxes. For more information contact: Land Trust
Alliance, 202-638-4725, website:
www.lta.org or the Conservation Foundation,
630-428-4500, for DuPage, Kane, Kendall and Will Counties.
Cook County Class-L Property Tax Incentive
Reduces the property tax rate for 10 years for rehabilitating a landmark
building in a commercial or industrial use. Minimum investment – 50% of the
building’s assessed value (land subtracted from the total assessed value), as
determined by the County Assessor. Call: Office of Special Assessment Programs,
Cook County Assessor’s Office at 312-603-5331 or the Landmarks Division of the
Chicago Department of Planning and Development (DPD), 312-744-3200.
Permit Fee Waiver
The City of Chicago waives all building permit fees (requires prior application)
for individual Chicago landmark buildings or those contributing to a Chicago
landmark district. Call the Landmarks Division of DPD at 312-744-3200.
Chicago Facade Rebate Program
The City of Chicago offers rebates to eligible commercial and industrial
businesses and property owners who complete qualified facade rehabilitation
projects. An eligible “facade” is the front face or elevation of the building,
which typically faces the street and contains windows and the principal entrance
to the building.
To learn more …
* Always be sure to check with your local preservation commission about any
local incentives that may be available in your municipality.
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