Tax credits way to fund downtown renovations

There’s opportunity for business owners to get money back for moving downtown, if they’re willing to make an up-front investment in Main Street in Cedartown and similar small towns across the country.

State and Federal tax incentives for preserving downtown buildings and putting them back into business are available for those willing to take the risk, according to the Northwest Georgia Regional Commission’s Kevin McAuliff.

A senior planner on the staff of the NWGARC, McAuliff told Cedartown Commissioners about the opportunity out there for property owners who are willing to rehabilitate Main Street buildings under historic preservation tax credits available from the State of Georgia and the federal government.

He explained that under historic preservation act rules following World War II and the loss of historic buildings across the country, the hope was that part of America’s history could be preserved if owners are given greater incentive to do so.

“Most of downtown Cedartown is on the National Register of Historic Places,” McAuliff explained. “Generally, people think that this has something to do with control. It does not. The National Register places no limitations on the use of your property.”

With commercial buildings in mind, McAuliff said that those with businesses downstairs in Main Street buildings and lofts upstairs can utilize the program if they are willing to spend on rehabilitation costs.

It starts with a state property tax freeze that applies to those who are willing to rehabilitate a building up to the standards laid out by the Secretary of the Interior on the federal level.

Those include working to keep the historic character and keep any changes to a minimum, but also to repair old historic features rather than replace them, not using certain techniques to strip old paint and clean surfaces, and to preserve and protect archeological resources of a building and property. The rules also govern how new additions to a National Register property as well.

“You can get a state property tax freeze,” McAuliff explained. “The value of your property will be frozen at pre-rehab value and will not go up to full rehab value until the 10th year. The ninth year, you pay a median value. This can result in substantial savings, while you invest the money that you’re saving back into the property.”

McAuliff said he’s worked with property owners in Dalton on similar reabilitation projects previously and that following the guidelines of the program was worth every penny saved. There’s also a state income tax credit program that follows the same guidelines, and a federal one that when combined can end up with half of an investment back.

He added there are additional federal grant programs that can help the city make investments, as well as Georgia Heritage grants for downtown investment.

Those interested in learning more about the tax credits, contact McAuliff at the NWGARC’s Dalton office at 706-272-2300.