Resources

• HISTORIC REGISTRY CHECKLIST
• MONETIZING TAX CREDITS
• TOP TIPS FOR THE PROCESS

Historic Registry Checklist

The National Park Service Agency of the U.S. Department of the Interior administers the National Register of Historic Places. The Historic Registry is the official federal inventory of properties, sites, districts and structures that possess historic integrity and have been deemed as significant in American history at the local, state or national level. State Historic Preservation Offices (SHPO) in each of the respective States assist and manage the application process.

Here is a helpful checklist to qualify:

1. The building must be fifty years of age or older.
2. You must prove significance and integrity in the historic context – any one or more of the following criteria:
   • A historic event occurred in your building
   • A historic person owned or occupied your building
   • The design/construction of your building is of historical significance
   • The site contains important information about History or Prehistory
3. You must complete and submit the National Register of Historic Places registration forms
4. Following the submission of your forms, you should work closely with SHPO to ensure successful listing.

You could complete the entire process on your own. However, in potentially complicated and high-reward situations like making the Historical Registry, it pays to work with an experienced partner like The Chesler Group.

Monetizing Tax Credits

Owning a registered historic property may qualify you for a 20% federal tax credit on qualified rehabilitation expenditures (QRE). This very valuable credit can then be sold to tax credit investors and converted as equity and even used to finance a substantial portion your project's cost.

To Qualify:

1. It must be depreciable income property such as commercial, industrial, agricultural, rental residential or have some other business purpose;
2. Your rehabilitation must be substantial.
3. Your property must be a Certified Structure listed individually in the National Register of Historic Places or must be a contributing structure in a registered district; For buildings that are not listed yet, complete Historic Preservation Certification Application – Part 1;
4. Your project must be approved as Certified Rehabilitation; This means the owner must complete Part 2 of the Historic Preservation Application-Description of the Rehabilitation;
5. Upon completion of the rehabilitation work, submit Part 3 of the Historic Preservation Certification – Request for Certification of Completed Work. Only projects that meet the Secretary of Interior's Standards for Rehabilitation will be approved and are eligible for the 20% tax credit;
6. The owner must hold the building for 60 months or five years after the rehabilitation – this is called the recapture period; If you don't, you may have to pay back the credit.

Top Tips for the Process

1. Make sure you apply for the federal rehabilitation tax credit before beginning any construction work. Better to be safe than sorry is true in this case.
2. Consult with your State Historic Preservation Office (SHPO) as soon as possible. If you have questions about how to get in touch, we'll be happy to assist.
3. Understand and apply the Secretary of Interior's Standards for Rehabilitation and the Guidelines for Rehabilitating Historic Buildings as they relate to the scope of your construction. This can be quite challenging and The Chesler Group can help you here too.
4. Make sure you alert the SHPO and the National Park Service about any project changes so they can inform you whether or not they may jeopardize your status.