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Tax Credits 101

ImagineImagine- Tomorrow’ Tomorrow’s Lifestyles in Yesterday’ Yesterday’s Places


Our Mission

Our Mission is to advocate for Macon’s historic and architectural heritage, to facilitate preservation efforts in our community, and to educate and inspire appreciation for our unique city.

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Accomplishments

•Rehabilitated more than 130 historic buildings •Created nearly 2,000 construction jobs •Revolved $10,000,000 in historic building restoration •Saved 2,000 tons of debris from the landfill •Completed tax certifications for more than 300 projects •Listed thousands of buildings and 7 districts on the National Register of Historic Places •Revitalized Huguenin Heights, Tattnall Sq. Heights •Raised property values by 2 to 10 times •Reduced crime by 50% •Currently revitalizing Beall’s Hill, near Mercer •Own, operate and interpret the Sidney Lanier Cottage house museum •Started the Middle Georgia Archives, now at Washington Memorial Library

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Requirements

• Building must be listed on the National Register of Historic Places, either individually or as a contributing building to a historic district (more than 5,000 buildings in Macon are already listed) •Buildings have to be at least 50 years old and mostly original P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


What Qualifies?

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


What Qualifies?

YES!

19th Century home at 986 Adams St., Macon, GA P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


What Qualifies?

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


What Qualifies?

YES! 1860s Greek Revival Cottage, 1211 Ross St., Macon, GA P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


What Qualifies?

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


What Qualifies?

YES! 1949 Phillip Johnson Glass House, owned by the National Trust P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


What Qualifies?

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


What Qualifies?

YES! Happ Brothers (Broadway) Lofts, Macon, GA P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


What Qualifies?

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


What Qualifies?

NO!

1963 Service Station, College and Forsyth Sts., Macon, GA P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


What Qualifies?

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


What Qualifies?

YES! 1947 Shirley Hills house on Twin Pines, Macon, GA P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


What Qualifies?

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


What Qualifies?

YES!

1948 Service Station, MLK, JR. Blvd., Macon, GA P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Benefits

For Single-Family Homes

For Income-Producing Property

25%-30% state tax credit ($100,000 max)

20% federal tax credit for buildings listed on the National Register of Historic Places (no maximum)

8.5 year property tax freeze at pre-rehabilitation value

25%-30% state tax credit ($300,000 max) 8.5 year property tax freeze at prerehabilitation value

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Restrictions

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Macon’ Macon’s Target Areas

Qualified Census Tracts get a 30% state tax credit & only have to spend $5,000 P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Benefits

• Residential projects can save 30%-40% of the value of the rehabilitation projects by using historic tax credits P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Benefits

• Commercial projects can save 40%-65% of the value of the rehabilitation projects and raise equity by using historic tax credits P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Basic Preservation Theory

1.

Do as little as possible to ensure the future of the building

2. Whatever changes you do make should be reversible P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Requirements

• Rehabilitation must retain most architectural features, especially historic windows P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Requirements

• Do not replicate or mimic missing historic features

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Requirements

• Additions should be clearly modern, not blended with the building, but • Additions should not substantially alter the appearance of the building

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Requirements

• Existing building at 503 Fifth St. • Owner would like to add an exterior deck for entry

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Requirements

• Original deck design was decorative wood with a lattice screen • Looked faux-historical and obscured the building’s lower storey

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Requirements

• Deck at 503 Fifth St. had to be redesigned in steel •New design is clearly modern, but preserves the building’s industrial identity

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Requirements

• Additions should be clearly modern, not blended with the building, but • Additions should not substantially alter the appearance of the building

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Quiz

You encounter an (ugly) 1960s wood front door on a 1910 bungalow. What do you do? A) Repair in place and retain B) Replace with a salvaged door of the correct period C) Replace with a new door of the correct style

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Quiz

You encounter an (ugly) 1960s wood front door on a 1910 bungalow. What do you do? A) Repair in place and retain B) Replace with a salvaged door of the correct period C) Replace with a new door of the correct style

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Quiz You would like to make a small addition to an 1870s Victorian Cottage. How do you add on? A) Match the original truss design and roof lines, use salvaged siding to blend with original B) Use modern cement-board siding and step in the addition an inch to differentiate slightly from the original C) Use vinyl or aluminum siding to differentiate and date the modern addition D) Construct the addition in a modern contrasting style

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Quiz You would like to make a small addition to an 1870s Victorian Cottage. How do you add on? A) Match the original truss design and roof lines, use salvaged siding to blend with original B) Use modern cement-board siding and step in the addition an inch to differentiate slightly from the original C) Use vinyl or aluminum siding to differentiate and date the modern addition D) Construct the addition in a modern contrasting style

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Quiz You would like to make a small addition to an 1870s Victorian Cottage. How do you add on?

• Completed appropriate addition at 1295 Ross St.

A) Match the original truss design and roof lines, use salvaged siding to blend with original B) Use modern cement-board siding and step in the addition an inch to differentiate slightly from the original C) Use vinyl or aluminum siding to differentiate and date the modern addition D) Construct the addition in a modern contrasting style

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Quiz

Your house has two front doors. You would like to restore one as a window. What do you do? A) Use a modern aluminum or vinyl window of a similar style to differentiate the addition B) Use a salvaged wood window of the correct period and style C) Build a new wood window of the correct style to match existing window P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Quiz

Your house has two front doors. You would like to restore one as a window. What do you do? A) Use a modern aluminum or vinyl window of a similar style to differentiate the addition B) Use a salvaged wood window of the correct period and style C) Build a new wood window of the correct style to match existing window P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Quiz

D) Find the window used as cabinet doors in the laundry room and re-install on front of house

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Quiz

Your Victorian house is missing its original mantels. How do you frame the fireplaces? A) Salvage wood mantels of the correct period and install them B) Build new wood mantels to replicate the correct style C) Cover the fireplaces with drywall to screen them D) Build new wood mantels with little ornament to appear new

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Quiz

Your Victorian house is missing its original mantels. How do you frame the fireplaces? A) Salvage wood mantels of the correct period and install them B) Build new wood mantels to replicate the correct style C) Cover the fireplaces with drywall to screen them D) Build new wood mantels with little ornament to appear new

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Quiz Finished mantel at 1295 Ross St.

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


1295 Ross St.St.- Before

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Project Overview

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Monthly Costs

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


1295 Ross St.St.- After

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


955 Walnut St.St.- Before

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Project Details

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Atlanta Gas Light

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Atlanta Gas Light Needs $750,000 to convert the building into 7 loft apartments Strategy Historic Macon recruits two investors to fund the acquisition and development by investing $375,000 each for one year Tax Credits Based on a $750,000 project budget • Federal Credit at 20%- $150,000 • State Credit at 25%- $187,500 Returns Each investor receives: • $75,000 in federal tax credits and • $93,750 in state tax credits 45% Return for 1 year investment P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Atlantic Cotton MillsMills- Before

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Project Details

Needs • Need $12.5 million to convert mill into 103 loft apartments • $2.5 million down payment on debt Tax Benefits • $10,800,000 in eligible expenses for tax credits • Federal Tax Credits (20%)- $2,160,000 • State Tax Credits (25%)- $300,000 max • Property Tax Freeze- $1,250,000 Uses • Sell Federal tax credits for 93 cents on the dollar- $2,008,800 • Raise <$500,000 in equity

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Results

P.O. BOX 13358 MACON, GA 31208 PH: 478.742.5084 FAX:478.742.2008 WWW.HISTORICMACON.ORG


Josh Rogers, Executive Director jrogers@historicmacon.org phone 478-742-5084 • fax 478-742-2008 email info@historicmacon.org • site www.historicmacon.org

ImagineImagine- Tomorrow’ Tomorrow’s Lifestyles in Yesterday’ Yesterday’s Places

Georgia Incentives for Preservation  

The State of Georgia offers incentives that can save 40-65% of the cost of refurbishing a historic building. This presentation will give yo...

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