Governor Paterson Signs Legislation To Enhance Historic Preservation Tax Credit
This is a winner for Yonkers, with its large and diverse collections of historic properties, many of which are in distressed areas. The enhanced credits will act as a mini “stimulus package” to help owners restore these valuable pieces of history.
New York’s preservation tax credit was adopted in 2006, however the program did not provide adequate incentives to attract sufficient investment to struggling municipalities. The enhancements signed by Governor Paterson will provide the following tax incentives for qualified historic properties:
o Gradually increase over five years the cap on the commercial credit value from $100,000 to $5 million and the residential credit value from $25,000 to $50,000;
o Target the credit in “distressed” areas — those located within a Census tract identified at or below one hundred percent of the median family income;
o Increase the share of qualified rehabilitation costs that commercial property owners can claim for the credit from 6 percent to 20 percent; and
o Offer the Preservation Tax Credit as a rebate for lower income homeowners to provide them with a stronger financial incentive with relatively smaller tax liability.
The program will apply to taxable years beginning January 1, 2010, and will sunset in five years on December 31, 2014.
