The record of applications for West Virginia’s State Historic Rehabilitation Tax Credit provide an indicator of redevelopment of underutilized historic buildings in the state.
In 2016, five building developers utilized West Virginia’s 10 percent state historic rehabilitation tax credit program, completing a total of five rehab projects in West Virginia.
Those five projects received a total of $670,081.90 in state tax credits.
In 2015, five projects qualified for, and received, a total of $675,210.20 in state historic rehabilitation tax credits.
In 2014, two projects received a total $626,565.70 in state historic rehabilitation tax credits.
The State Historic Rehabilitation Tax Credit program, operated by the West Virginia State Historic Preservation Office, helps fill financing gaps for developers when rehabbing vacant and underutilized historic buildings.
The tax credit is a dollar-for-dollar reduction in income tax liability, which a developer can apply directly to their annual income tax after the rehabilitation project is finished.
Currently, the West Virginia State Historic Rehabilitation tax credit is equal to 10 percent of new capital investment in the building. Eligible rehabilitation expenses include structural components of the building, as well as construction period interest and taxes, and architect, engineering, or construction management fees.
Neighboring states, including Pennsylvania, Ohio and Virginia, all have 25 percent historic rehabilitation tax credits.
The National Park Service operates a similar tax credit program at the federal level, though it is more substantial, at 20 percent of the capital investment of a historic rehabilitation project.
To qualify for the state tax credit, the structure must be an income producing property, such as a commercial building, residential rental, or even a bed and breakfast. And the building must be listed on the National Register of Historic Places, or be eligible to be listed on the National Register, to qualify for the tax credit.
Who To Talk To:
Revitalize West Virginia’s Downtowns
The Campaign to Increase the State Historic Tax Credit