The owner must submit an application to the Alabama Historical Commission, who in-turn, processes the application to the National Park Service. Part 1 of the application certifies that the building is historic and eligible for the program, and Part 2 of the application certifies that proposed work meets the Standards for Rehabilitation<\/em>. The application process can take several months, so it is important to incorporate the review period into the project schedule because plans should be approved prior to the start of the project.<\/p>\n\n\n\n The National Park Service website explains the eligibility requirements and application process and provides important information about the IRS side of the program https:\/\/www.nps.gov\/tps\/tax-incentives.htm<\/a>. It is important to review this information and understand the IRS implications to determine if this program will work for you. First-time applicants can review introductory brochures that explain the program and process https:\/\/www.nps.gov\/tps\/tax-incentives\/before-you-apply.htm<\/a>.<\/p>\n\n\n\n The National Park Service recently approved the completed rehabilitation of Howell School<\/strong> in Dothan. The school was constructed in 1902 but was heavily modified in 1947 to serve as a textile factory. The project consisted of removing the non-historic addition, restoring masonry, installing windows, and rehabilitating the interior for senior housing.<\/p>\n\n\n\n Similar to the federal program, the Alabama Historical Commission administers the Alabama Historic Rehabilitation Tax Credit program, in coordination with the Alabama Department of Revenue, that is available to owners who rehabilitate their historic building. The tax credit equals 25% of eligible rehabilitation expenditures and is used to reduce state income taxes owed by the building owner. Two major differences with the state program is that private residences are currently eligible for the program, in addition to income-producing properties, and excess tax credits are refunded to the property owner. Some key factors of the Alabama Historic Rehabilitation Tax Credit program include:<\/p>\n\n\n\n The program runs through the end of 2027, and the Alabama Legislature recently passed several important amendments to the program. The biggest change to the program is that beginning in 2023, owner-occupied primary and secondary residences will no longer be eligible for state historic tax credits. Information about the Alabama Historic Rehabilitation Tax Credit program may be found on the AHC\u2019s website https:\/\/ahc.alabama.gov\/alabamarehabtaxcredits.aspx<\/a>. <\/p>\n\n\n\n The Alabama Historical Commission approved the completed rehabilitation of Womack\u2019s Hardware<\/strong> in Monroeville. This commercial building was constructed in 1940. It was originally a family owned hardware store. The rehabilitation project restored the fa\u00e7ade, floors, windows and doors, cleaned the brick, and converted the second floor into apartments.<\/p>\n\n\n\n Anyone with questions on how to make repairs to historic buildings would benefit from perusing technical information issued by NPS and organized on their website as \u201cPreservation by Topic\u201d https:\/\/www.nps.gov\/tps\/how-to-preserve\/by-topic.htm<\/a>. It covers repair methods for typical historic materials such as wood or steel windows; brick and stone masonry; and plaster, stucco, or concrete. It also addresses rehabilitation issues such as installing HVAC ductwork, providing accessibility, repairing or replacing storefronts, and cyclical maintenance. <\/p>\n\n\n\n For those committed to completing a sensitive historic rehabilitation, the Secretary of the Interior\u2019s Standards for Rehabilitation<\/em> are guidelines established by NPS that advocate repair of historic materials (rather than replacement) and retention of the historic character of the property. Rehabilitation standards accommodate alterations to a building for a new use while retaining the building\u2019s historic character https:\/\/www.nps.gov\/tps\/standards\/rehabilitation.htm<\/a>. NPS provides guidance on \u201cPlanning Successful Rehabilitation Projects\u201d https:\/\/www.nps.gov\/tps\/standards\/applying-rehabilitation\/successful-rehab.htm<\/a>. Case studies for common historic rehabilitation issues are also available and called \u201cInterpreting the Standards Bulletins\u201d https:\/\/www.nps.gov\/tps\/standards\/applying-rehabilitation\/standards-bulletins.htm<\/a>.<\/p>\n\n\n\n In addition to the federal and state income tax incentives described above, there is a property tax benefit for owning historic property located in Alabama. All historic property, regardless of use, is considered Class III property, which is assessed at the same rate as residences. This provides no further benefit to homeowners, whose houses are already Class III property, but it could benefit commercial and investment properties, which are Class II property. Class II property currently assessed at 20% could be reclassified as Class III property and assessed at 10% if the building is historic. To determine if a property is eligible for this Ad Valorem benefit:<\/p>\n\n\n\n Alabama Historical Commission staff are available to explain a variety of historic preservation programs. Historic preservation consultants and preservation architects are helpful in assisting property owners with historic rehabilitation projects, completing paperwork, and drawing up plans for a project. Using contractors experienced in working on historic buildings is also recommended. It takes specialized contractors to know how historic buildings work and to appreciate the need to perform work in a sensitive manner. The Alabama Trust for Historic Preservation has a list of \u201cConsultants & Contractors\u201d on their webpage that may be useful when planning a rehabilitation project https:\/\/alabamatrust.co\/consultants-contractors\/<\/a>. <\/p>\n\n\n\n Chloe Mercer coordinates the federal historic rehabilitation tax credit program and may be contacted at Chloe.Mercer@ahc.alabama.gov<\/a> \/ 334.230.2669 and Hannah Garmon coordinates the Alabama Historic Rehabilitation Tax Credit and Ad Valorem assessment programs and may be contacted at Hannah.Garmon@ahc.alabama.gov<\/a> \/ 334.230.2644. Both work for the Alabama Historical Commission, the State Historic Preservation Office, whose mission is to protect, preserve, and interpret Alabama\u2019s historic places.<\/p>\n","protected":false},"excerpt":{"rendered":" By Lee Anne Wofford, Deputy State Historic Preservation Officer at the Alabama Historical Commission The Alabama Historical Commission receives frequent calls requesting financial assistance for repairing and rehabilitating historic buildings. We inform those property owners that grant funds, when available, are rarely awarded for projects on private property. Instead, grants, particularly public-funded grants, are typically available for property that is …<\/p>\n","protected":false},"author":3,"featured_media":406,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[3],"yoast_head":"\n![\"\"](\"https:\/\/alabamatrust.co\/wp-content\/uploads\/2021\/07\/blog-1.jpg\")
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