The North Carolina Historic Preservation Tax Credit provides a range of tax credit options for qualified historic properties within the state. For qualified rehabilitation expenditures (QREs) up to $10 million, the state provides a 15 percent credit; QREs between $10 million and $20 million receive a ten percent credit; QREs above $20 million will receive no credit.
An additional five percent will be awarded for up to $20 million in QREs for those projects located in Tier One or Tier Two counties. The North Carolina Department of Commerce annually ranks each county within the state based on their economic status. The 40 counties in the most need are ranked in Tier One and the next 40 counties are in Tier Two. A complete updated list for county Tier rankings can be accessed at the NC Department of Commerce website.
Another additional five percent credit (up to $20 million in QREs) is available for target investment sites. A target investment site must be a certified historic structure, have been used for agricultural or manufacturing purposes, and have been at least 65 percent vacant for at least two years immediately prior to the date the eligibility certification is made.
The state recently approved an additional five percent tax credit [NEED TO CHECK CAP] for properties located in designated disaster areas by the…..
All work must meet the Secretary of the Interior’s Standards for Rehabilitation and credits may be applied in the year the structure is placed into service and carried forward for nine years. The program sunsets on January 1, 2020.
Who can use the credit?
The credit can be used by the owner(s) of the property or a pass-through entity.
Wake Forest Innovation Quarter
Mixed-Use, Technology + Education
Client: Wexford Science + Technology, LLC
Built: 1923-24, 1926-28, 1937
Project Costs: $407 million
HTC equity: Over $70 million
Client: Chatham Mill Ventures, LLC
Built: 1907, 1951
Project Costs: $35.6 million
HTC equity: Over $10 million