Historic Rehabilitation Tax Credits
The Federal Historic Rehabilitation Tax Credit (HRTC) is a federal subsidy used to finance the rehabilitation of historic buildings, including certified historic structures. Congress created the HRTC as an incentive to private developers and investors to preserve and reuse certified historic and older buildings. In order for an historic building rehabilitation project to be eligible for HRTCs, the National Park Service must verify the project’s eligibility.
Navigating the rules and regulations governing which project expenditures are eligible, obtaining the necessary project approvals and successfully bringing all parties involved in the transaction to a successful close can be a daunting task. Kutak Rock’s tax credit attorneys are trusted advisors for our clients going through the process. We assist with the preparation of the foregoing filings with the National Park Service and the evaluation of any conditions associated with Park Service approval.
Our tax credit lawyers have a wealth of experience in representing parties throughout the nation, not only in transactions in which HRTCs are the sole tax credit involved, but also in complex transactions in which HRTCs are paired with other tax credits, such as the Low-Income Housing Tax Credit or the New Markets Tax Credit, to maximize the financial benefit that the transaction can yield to participants. In this connection, our attorneys structure transactions to minimize the tax cost associated with implementing features necessary to comply with the complex historic tax provisions of the Internal Revenue Code and to efficiently infuse historic tax credit equity into such projects.