The News Herald (Willoughby, OH)
Historic tax credits discussed
Joe Crusse gained a new perspective about historic tax credits after hearing a presentation organized by Heritage Ohio on July 9.
Although Crusse said initially he never wanted to be a part of the National Register of Historic Places, now he is considering the idea.
“You constantly hear the negatives and I think they dispelled some of those rumors today, which is a good thing,” he said. “It was very informative. I think it would be more beneficial than negative and that’s something I didn’t expect.”
The event was at the Gage House at 47 S. State St., which is the property that Crusse and his daughter Shannon Barnhill purchased about six months ago.
Barbara Powers explained that the National Register is a program to help celebrate community’s rich historic character, architectural character and provide and incentive for reinvestment.
“It is the official list of properties considered worthy of preservation because of their significance in history architecture, culture, engineering and archeology,” said Powers, who oversees the National Register process for Ohio, the qualifying designation necessary to use some of the historic tax credits. “In Ohio, we have the third highest number of listings in the National Register in the entire country.”
She also outlined how a property qualifies for the National Register and how to apply.
In Ohio, the first step in nominating a property to the National Register is to complete a National Register Preliminary Questionnaire, which is designed to help determine whether a property or district is likely to qualify for nomination to the National Register of Historic Places.
Nathan Bevil, a reviewer with the department at the State Historic Preservation
Office and Lisa Brownell, program manager at the Ohio Development Services Office, discussed the Federal Historic Tax Credit and the Ohio Historic Tax Credit.
Bevil said the 20 percent federal rehabilitation tax credit is available for income-producing certified historic properties. There must substantial rehabilitation of the property and the work must meet the Secretary of the Interior’s Standards for Rehabilitation.
Additionally, the federal tax credit is not competitive and has no cap.
On the other hand, Brownell said the Ohio Historic Preservation tax credit is up to 25 percent and is competitive.
Projects are scored based on economic impact, developer readiness local support and location.
Brownell also helped attendees understand the difference between tax credits and tax deductions.
“A tax credit is something that actually reduces the amount of taxes that you owe,” she said. “A tax deduction reduces the amount that you are being taxed on. These programs are both tax credits.”
Programs like these strengthen communities and ensures access to opportunities, said state Sen. Kenny Yuko, D-Richmond Heights.
In fact, the Downtown Painesville Organization recently received funding to complete the National Register Nomination for a historic district. The Ohio Historic Preservation Tax Credit Pipeline Initiative awarded the DPO a grant up to $12,000.
As part of the Historic Tax Credit Coffee series, meetings were also held at the Ashtabula County District Library, Chardon Heritage House and Cleveland Heights Library. These introductory and informative meetings were free and open to the public.