Tax Credits Renovation of Historic Buildings in Texas Faculties

In 2017 the Texas Legislature passed House Bill 1003, which designed the Texas Historic Preservation Tax Credit rating readily available to condition university units and other condition establishments of larger instruction. Adhering to this change, universities and institutions of greater education and learning are now able to make use of these Texas state tax credits (“HTCs”) to offset the price tag of renovation jobs of historic structures on their campuses.

To qualify, a task will have to meet the next requirements:

1. The undertaking should be for the renovation of a historic making.

2. Architectural operate on the renovation ought to fulfill specific rehabilitation criteria.

3. Price tag of the renovation must be in excess of $5,000.

4. An application for participation in the application should be submitted to the Texas Historic Commission ahead of the project is finished.

5. The project have to have a documented placed in assistance day prior to January 1, 2022, offered that initiatives not concluded by that time might be phased to so that done merchandise qualify for the tax credit score.

Buildings should be selected as historic or be established as eligible for historic designation to take part in the plan. Normally, this involves listing in the Nationwide Sign-up of Historic Sites, designation as a Recorded Texas Historic Landmark or as a Condition Antiquities Landmark.  Nonetheless, a developing that is not currently outlined or selected could however be eligible furnished it is at least 50 yrs previous (constructed prior to 1971).

The Texas condition HTC program delivers a tax credit score equal to 25% of the experienced fees of renovation of historic properties. Point out universities and establishments of greater instruction are suitable to provide the HTCs gained by their jobs. For illustration, if a Texas condition university has a job to renovate a dormitory making created prior to 1971 with suitable renovation costs of $2. million, the task would be qualified for up to $500,000 in tax credits. Those people tax credits can then be marketed and the proceeds applied to offset the complete price of renovation.