Rehabilitation Tax Credit: Does it Still Provide Incentives?

For nearly a century, the rehabilitation and preservation of historical structures and neighborhoods have been strongly favored by US federal policy. A system of incentives was enacted in the Tax Reform Act of 1976, which evolved into a 3-tiered rehabilitation tax credit in 1981 and was replaced wit...

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Bibliographic Details
Published in:Virginia tax review 1990-07, Vol.10 (1), p.167
Main Authors: Cheverine, Carolyn Ells, Hayes, Charlotte Mariah
Format: Article
Language:English
Subjects:
Deficit Reduction Act 1984-US
ERTA 1981-US
Historic preservation
Incentives
Internal Revenue Code
Investment tax credits
Real estate
Real estate developments
Rehabilitation
Renovation & restoration
Renovations
Revenue Acts
Tax credits
Tax incentives
Tax reform
Tax Reform Act 1976-US
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Summary:For nearly a century, the rehabilitation and preservation of historical structures and neighborhoods have been strongly favored by US federal policy. A system of incentives was enacted in the Tax Reform Act of 1976, which evolved into a 3-tiered rehabilitation tax credit in 1981 and was replaced with a 2-tiered tax credit in 1986. It now is questionable whether the rehabilitation tax credit still serves the purposes Congress intended. As a result, action should be taken to encourage the rehabilitation of historic buildings. Federal tax incentives must make the added expense of categorizing a building as historical reasonable for the taxpayer or at least offer rehabilitation benefits that exceed the cost of rehabilitation. Such an incentive could be provided through an amendment to the 2-tiered credit system in the Tax Reform Act. Additional incentives can come from municipal regulations or from Congress.
ISSN:0735-9004