In 1976, Congress enacted the federal historic rehabilitation credit to encourage the preservation and reuse of the nation's built environment. The credit has been one of the most powerful and effective tools for encouraging rehabilitation for housing and commercial buildings.
Federal law provides a federal income tax credit equal to 20% of the cost of rehabilitating a historic building for commercial use. The tax credits represent a dollar-for-dollar reduction of federal taxes owed and allow projects to become economically feasible by attracting equity investment to offset the cost of development and operation of rehabilitation projects.
To qualify for the credit, the property must be a certified historic structure and be included on the National Register of Historic Places or contributing to a registered historic district. Non-historic buildings built before 1936 may also qualify for a 10% tax credit. At present, individuals rehabilitating a historic property for their primary residence do not qualify for this federal tax credit.
From application review and initial projections, to final cost certifications, the Sherbert Group works closely with all parties to structure deals that maximize the utilization of the historic rehabilitation credits generated by a project. Our expertise and knowledge of current market conditions allows us to work with our clients to develop projects that meet the demands of today's tight credit markets.
Investors, owners and developers trust the professionals at Sherbert Group to guide projects through the long and complicated tax credit process. Our audit and accounting specialists prepare all required filings accurately and timely. We prepare financial analysis and projections, cost certifications for projects placed in service, reviews, agreed upon procedures, and independent audits of financial statements. Our tax professionals provide expert knowledge to structure partnerships to insure that IRS regulations are followed. The Sherbert Group specializes in tax return preparation for partnerships and the preparation of the K-1's to accurately report activity at the partner level. We also prepare corporation, S-corporation and individual tax returns.
State agencies and many of the most respected investors and developers in the historic rehabilitation markets have put their trust in The Sherbert Group. Let us put our expertise to work for you.
