Historic Tax Credits
Historic Preservation Tax Incentives
Springfield has pending approval status on the creation of a Historic District in the residential downtown, extending south from the historic courthouse and covering a large portion of the residential area on either side of Laurel Street. Most of the DDA Area is included in this historic district – especially those in the historic commercial downtown area between Madison Street and Second Street. The area is being designated as historic to help protect the existing historic homes and to ensure that future development and new construction will not have a negative impact on the area. Not all properties in the district are of historical value, but being in the district means that those that are historic can receive tax credits on qualified expenses. The program is in in place to offer assistance to property owners that want to restore their historic homes or businesses.
Having “pending approval” means that we are in the process of getting on the National Registry but have not quite received official approval from the state and federal offices. While in the pending approval stage, all properties on the map that are marked at “contributing to the district” are eligible to receive historic tax credits on both the state and federal level for qualified expenses on renovation of the historic structures on the property. Being listed as contributing structure does not limit what you can do to your property. Restrictions on renovation guidelines will come from local zoning only. Only those renovations that are applying for state or federal tax credits will have to meet the state and federal design standards for historic renovations.
- A 25% State Tax Credit on Qualified Rehabilitation Expenses that are approved prior to the beginning of construction.
- A 20% Federal Tax Credit on Qualified Rehabilitation Expenses that are approved prior to the beginning of construction. These are given out evenly over the course of 5 years, beginning from the Final Certification of the project.
- A Preferential Property Tax Assessment Freeze that can freeze the property value at the pre-renovated value for two years during the rehabilitation of the project. If approved by the local tax assessor, the freeze can be extended for an additional 6.5 years.
For more detail on these regulations please see the links below or contact us at (912) 754-7617. These programs are not administered or regulated by the City of Springfield or the Downtown Development Authority, but we will be glad to assist you in exploring how these programs can benefit your project.