Tax Credits Renovation of Historic Buildings in Texas Colleges

In 2017 the Texas Legislature handed Household Invoice 1003, which manufactured the Texas Historic Preservation Tax Credit score obtainable to point out college systems and other point out establishments of higher education and learning. Pursuing this adjust, universities and establishments of larger schooling are now able to employ these Texas condition tax credits (“HTCs”) to offset the cost of renovation tasks of historic properties on their campuses.

To qualify, a challenge need to meet the adhering to requirements:

1. The venture must be for the renovation of a historic setting up.

2. Architectural work on the renovation ought to meet up with specified rehabilitation expectations.

3. Charge of the renovation must be in excessive of $5,000.

4. An software for participation in the plan ought to be submitted to the Texas Historic Commission prior to the venture is completed.

5. The project should have a documented positioned in provider day prior to January 1, 2022, provided that jobs not completed by that time may be phased to so that concluded products qualify for the tax credit history.

Buildings have to be designated as historic or be established as qualified for historic designation to participate in the plan. Generally, this contains listing in the Countrywide Sign up of Historic Destinations, designation as a Recorded Texas Historic Landmark or as a State Antiquities Landmark.  Even so, a setting up that is not presently mentioned or specified could nevertheless be eligible delivered it is at least 50 several years aged (built prior to 1971).

The Texas state HTC software delivers a tax credit equivalent to 25% of the experienced expenses of renovation of historic properties. State universities and establishments of increased education and learning are suitable to provide the HTCs attained by their initiatives. For example, if a Texas state college has a task to renovate a dormitory building constructed prior to 1971 with eligible renovation costs of $2. million, the project would be eligible for up to $500,000 in tax credits. Those tax credits can then be marketed and the proceeds employed to offset the complete value of renovation.