Policy

The Financial Benefits of Chicago's Class "L" Designation for Historic Properties

Under the Class “L” program, owners of qualifying commercial and industrial properties designated as “landmarks” and undergoing “substantial rehabilitation” can have their property tax assessment levels reduced for a twelve-year period.  Where commercial and industrial properties are typically assessed at 25% of market value, Class L buildings are assessed at only 10% for ten years, 15% in year 11 and 20% in year 12.

Historic Tax Credits and Hurricane Katrina

Katrina presented an overwhelming burden for those looking to revitalize buildings of significance in New Orleans and throughout the Gulf Coast. Swift action by Congress and President Bush established the Gulf Opportunities Zone Act of 2005 (GO Zone), a bill that among other things increased the federal historic rehabilitation tax credit to 26% from the normal 20% for Gulf Coast regions affected by Katrina as well as Hurricanes Rita and Wilma that hit only a few months later.