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Van Dyke Architects, LLC

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Historic Preservation Tax Credits

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Van Dyke Architects, LLC

  1. 1. Welcome to Heritage Ohio’s Tax Credit Workshop
  2. 2. Agenda <ul><li>9:15 - How Tax Credits Work </li></ul><ul><li>10:15 - Preparation and Application Overview </li></ul><ul><li>11:00 - Structuring & Financing the Deal </li></ul><ul><li>12:00 - Networking Lunch </li></ul><ul><li>1:00 - Case Study </li></ul><ul><li>1:30 - Roundtables </li></ul><ul><li>3:30 - Wrap Up Questions & Answers </li></ul><ul><li>4:00 - Project Tour </li></ul>
  3. 3. How Tax Credits Work <ul><li>Mary Forbes Lovett </li></ul><ul><li>Duane Van Dyke, AIA, LEED AP </li></ul>
  4. 4. Why Historic Preservation? <ul><li>Revitalizes our cool, hip, & walkable existing urban neighborhoods and Main Streets </li></ul><ul><li>Improves Quality of Life </li></ul><ul><li>Attracts and retains the next generation of Entrepreneurs </li></ul><ul><li>Creates jobs and increases property values </li></ul><ul><li>Contributes to income tax in the region </li></ul><ul><li>Contributes to the future success of our State </li></ul>
  5. 5. Cleveland
  6. 6. Colonial Marketplace
  7. 7. Colonial Marketplace
  8. 8. Cleveland Arcade
  9. 9. East 4th
  10. 10. Euclid & East 9th
  11. 11. 668 Euclid
  12. 12. Cleveland’s Historic Gateway Neighborhood
  13. 13. Cleveland’s Historic Warehouse District
  14. 14. Tax credits were responsible for over almost 1 billion in redevelopment in these two neighborhoods.
  15. 15. Tiffin
  16. 16. Bellevue
  17. 17. Saint Clairsville
  18. 19. What are the different types of credits available for real estate projects? <ul><li>Federal Historic Tax Credits </li></ul><ul><li>State Historic Tax Credits </li></ul><ul><li>Federal New Market Tax Credit </li></ul><ul><li>State New Market Tax Credit </li></ul><ul><li>Low Income Housing Tax Credits </li></ul><ul><li>Façade & Lost Development Easements </li></ul>
  19. 20. What is a tax credit? <ul><li>An indirect federal subsidy used to finance rehabilitation of historic and older buildings </li></ul>
  20. 21. What is the difference between federal and state historic tax credits? <ul><li>Types of qualifying structures </li></ul><ul><li>Credit vs. Refund </li></ul><ul><li>Taxation of Benefit </li></ul><ul><li>End User </li></ul><ul><li>Timing </li></ul><ul><li>Flexibility </li></ul><ul><li>Recapture </li></ul><ul><li>Scope of Rehabilitation </li></ul><ul><li>Cap </li></ul>
  21. 22. What is the difference between a 10% & 20% credit?
  22. 23. How and when do you turn a tax credit into cash for your project?
  23. 24. Who can claim the credit, i.e. who is the investor?
  24. 25. What is recapture and how does it affect a developer?
  25. 26. Can a nonprofit be involved in a historic rehabilitation? <ul><li>Disqualified lease </li></ul><ul><li>Tax exempt partner </li></ul>
  26. 27. Assuming that the building qualifies, when does it make sense to use tax credits?
  27. 28. Can the HTC be combined with other tax credit programs?
  28. 29. Can you give me an example on how this works for a simple transaction?
  29. 30. What are the advantages and disadvantages of doing a tax credit transaction?

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