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Old 09-24-2007, 11:19 AM
 
Location: Raleigh, NC
160 posts, read 389,880 times
Reputation: 505
Default Historic Renovation Tax Credits

On another thread, we were discussing the re-muddling of a historic house in the Mordecai neighborhood of Raleigh. Mike Jaquish correctly pointed out that Mordecai is not regulated by the Raleigh Historic Districts Commission, so people are free to do a remodel job that does not preserve a house’s historic character.

But even so, it makes economic sense to do a historically correct restoration. Firstly, it looks much better and people who want to pay the price premium to live in a historic neighborhood generally want a house that still has its historic charm.

But there is another financial reason to do a proper historic restoration. Although Mordecai is not a local historic district, it is a National Register Historic District. Therefore, renovators can get tax credits for a historical renovation that is done to historical standards. These tax credits are really amazing: up to 30% of the cost of the renovation. They are actual credits against your state income tax, not just deductions from income. They are spread out over five years. So if you spend $100,000 on a historic renovation, you can get $20,000 off your state income tax for five years. If you don’t pay that much state income tax, you can spread the rest over the next five years, and the next five years, etc.

This credit is available in all National Register historic districts. There are a lot of them in Raleigh and Durham; pretty much every neighborhood built before World War II. There are also National Register districts in many other triangle towns. Wake Forest and Chapel Hill have major districts. The tax credit is available to all “contributing properties” meaning historic buildings. If your house is in a historic district but is just ten years old, I don’t believe you could get the credit.

To get this tax credit, you have to get your renovation plans approved by the North Carolina State Historic Preservation Office. They are strict about the outside of the house and the formal rooms – the foyer, living room, dining room. They mostly let you do anyting in the informal rooms – kitchens, bathrooms, bedrooms, etc.

Unfortunately, this tax credit is not heavily publicized, and most people don’t know about it, or they would surely make the extra effort to go for it. It's a lot of money!

Go to the web site for the State Historic Preservation Office for more information: Historic Preservation Tax Credits in North Carolina
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Old 09-24-2007, 11:23 AM
 
Location: Cary, NC
19,404 posts, read 30,266,612 times
Reputation: 16354
Quote:
Originally Posted by askmisterbrown View Post
On another thread, we were discussing the re-muddling of a historic house in the Mordecai neighborhood of Raleigh. Mike Jaquish correctly pointed out that Mordecai is not regulated by the Raleigh Historic Districts Commission, so people are free to do a remodel job that does not preserve a house’s historic character.

But even so, it makes economic sense to do a historically correct restoration. Firstly, it looks much better and people who want to pay the price premium to live in a historic neighborhood generally want a house that still has its historic charm.

But there is another financial reason to do a proper historic restoration. Although Mordecai is not a local historic district, it is a National Register Historic District. Therefore, renovators can get tax credits for a historical renovation that is done to historical standards. These tax credits are really amazing: up to 30% of the cost of the renovation. They are actual credits against your state income tax, not just deductions from income. They are spread out over five years. So if you spend $100,000 on a historic renovation, you can get $20,000 off your state income tax for five years. If you don’t pay that much state income tax, you can spread the rest over the next five years, and the next five years, etc.

This credit is available in all National Register historic districts. There are a lot of them in Raleigh and Durham; pretty much every neighborhood built before World War II. There are also National Register districts in many other triangle towns. Wake Forest and Chapel Hill have major districts. The tax credit is available to all “contributing properties” meaning historic buildings. If your house is in a historic district but is just ten years old, I don’t believe you could get the credit.

To get this tax credit, you have to get your renovation plans approved by the North Carolina State Historic Preservation Office. They are strict about the outside of the house and the formal rooms – the foyer, living room, dining room. They mostly let you do anyting in the informal rooms – kitchens, bathrooms, bedrooms, etc.

Unfortunately, this tax credit is not heavily publicized, and most people don’t know about it, or they would surely make the extra effort to go for it. It's a lot of money!

Go to the web site for the State Historic Preservation Office for more information: Historic Preservation Tax Credits in North Carolina
Good Job, Mr. Brown!
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Old 09-24-2007, 01:09 PM
 
9,064 posts, read 18,335,997 times
Reputation: 8356
Quote:
Originally Posted by askmisterbrown View Post
On another thread, we were discussing the re-muddling of a historic house in the Mordecai neighborhood of Raleigh. Mike Jaquish correctly pointed out that Mordecai is not regulated by the Raleigh Historic Districts Commission, so people are free to do a remodel job that does not preserve a house’s historic character.

But even so, it makes economic sense to do a historically correct restoration. Firstly, it looks much better and people who want to pay the price premium to live in a historic neighborhood generally want a house that still has its historic charm.

But there is another financial reason to do a proper historic restoration. Although Mordecai is not a local historic district, it is a National Register Historic District. Therefore, renovators can get tax credits for a historical renovation that is done to historical standards. These tax credits are really amazing: up to 30% of the cost of the renovation. They are actual credits against your state income tax, not just deductions from income. They are spread out over five years. So if you spend $100,000 on a historic renovation, you can get $20,000 off your state income tax for five years. If you don’t pay that much state income tax, you can spread the rest over the next five years, and the next five years, etc.

This credit is available in all National Register historic districts. There are a lot of them in Raleigh and Durham; pretty much every neighborhood built before World War II. There are also National Register districts in many other triangle towns. Wake Forest and Chapel Hill have major districts. The tax credit is available to all “contributing properties” meaning historic buildings. If your house is in a historic district but is just ten years old, I don’t believe you could get the credit.

To get this tax credit, you have to get your renovation plans approved by the North Carolina State Historic Preservation Office. They are strict about the outside of the house and the formal rooms – the foyer, living room, dining room. They mostly let you do anyting in the informal rooms – kitchens, bathrooms, bedrooms, etc.

Unfortunately, this tax credit is not heavily publicized, and most people don’t know about it, or they would surely make the extra effort to go for it. It's a lot of money!

Go to the web site for the State Historic Preservation Office for more information: Historic Preservation Tax Credits in North Carolina
This is great information Mr. Brown. Thanks for posting it. By the way, speaking of preservation, did you see this article in the N&O?

newsobserver.com | Historic home needs a savior (http://www.newsobserver.com/674/story/714179.html - broken link)
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Old 09-24-2007, 05:43 PM
 
9,064 posts, read 18,335,997 times
Reputation: 8356
After work today I took a quick drive through Mordecai to check out a house that was having some work done on it a few months back. I didn’t know what to expect, but I certainly wasn’t expecting this! I think this “Boxy” looking thing is an addition to the small original white house hidden behind it. Looks kind of out of place IMO!



This is what the house next door looks like for comparison.

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Old 09-24-2007, 08:36 PM
 
Location: Clayton, NC
232 posts, read 579,374 times
Reputation: 48
Isn't this on the street that is around the corner from the Extreme Home Makeover house. I drove my mom through the neighborhood to see the house this past spring, and I remember seeing that house you've pictured. But at the time, it was nothing but the concrete slab out front, and we couldn't imagine what sort of addition they were adding. I don't think I can find the words for what the neighborhood must think... I know what I'm thinking..
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