Historic Tax Credits Seminar

Posted on Nov 9, 2023 in Announcements

Hawai‘i State Historic Preservation Division

National Park Service &

Historic Hawai‘i Foundation

 

Historic Tax Credits Seminar

Date: Tuesday, December 5, 2023

Time: 9:00 a.m. – 12 noon

Place: AIA Honolulu Center for Excellence, 828 Fort Street Mall, #100, Honolulu, O‘ahu

Cost:    Free

Who:   Open to the Public; Registration Required at https://historichawaii.org/2023/10/27/historic-tax-credits-seminar/

BACKGROUND

The Federal Historic Preservation Tax Incentives (aka Historic Tax Credit) program encourages private sector investment in the rehabilitation and re-use of historic buildings. It creates jobs and is one of the nation’s most successful and cost-effective community revitalization programs.

A 20% income tax credit is available for the rehabilitation of historic buildings that are determined to be “certified historic structures.” The buildings must be considered depreciable under the Internal Revenue Code, such as in a business, commercial, or other income-producing use. The State Historic Preservation Division (SHPD) and the National Park Service (NPS) review the rehabilitation work to ensure that it complies with the Secretary of the Interior’s Standards for Rehabilitation. The Internal Revenue Service (IRS) defines qualified rehabilitation expenses on which the credit may be taken. Owner-occupied residential properties do not qualify for the federal rehabilitation tax credit. 

Additional State of Hawai‘i income tax credits and local County property tax exemptions are available for rehabilitation and preservation of historic properties. Other federal tax credits that may be used in historic preservation projects include Affordable Housing Tax Credits and Preservation Easement Tax Credits.

ABOUT THE SEMINAR

The purpose of this program is to educate historic property owners, developers, financiers, tax and accounting, real estate, architects, land use and planning professionals on the Historic Tax Credit programs available in the State of Hawai‘i and the use of federal historic tax credits to rehabilitate historic buildings. The seminar will explain the basics of the federal and Hawai‘i historic tax credits, why and how developers/owners use them, and how they have been catalytic for community benefits.

 

The seminar will provide subject matter experts to explain the parameters of the federal and state income tax credit programs, including eligible properties, eligible expenses, rehabilitation criteria, application procedures, and claiming the credit.  The presentations will include case studies to showcase different funding sources and financing strategies to engage in preservation planning and financing of affordable housing and community preservation projects.

Learning Objectives:

  • Objective 1: Understand eligibility requirements for Historic Tax Credits
  • Objective 2: Understand the application procedures for Historic Tax Credits
  • Objective 3:  Understand the concepts of certified historic structures, applying the Standards and Guidelines for the Rehabilitation of Historic Buildings, and qualified rehabilitation expenses
  • Objective 4:  Understand funding sources and financing strategies through combining historic and affordable tax credits and through syndicating tax credits.

Sponsors:

National Park Service

Hawai‘i State Historic Preservation Division

Historic Hawai‘i Foundation

Logistics and Outreach:

  • Andrea Nandoskar, Historic Hawai‘i Foundation, Education Program Manager

Facilitators:

  • Kiersten Faulkner, Historic Hawai‘i Foundation, Executive Director
  • Elaine Jackson- Retondo, National Park Service, Interior Region 8, 9, 10 and 12 Preservation Partnerships and History Program Manager

Instructors/Presenters:

  • Jessica Puff, SHPD Architecture Branch Chief
  • John Sandor, NPS Technical Preservation Services
  • Case Studies and Project Examples
    • Ed D’Ascoli, Podmore Building (tentative)
    • Tonia Moy, Dearborn Building
    • Shelby Mendez, Dearborn Building
    • Mark Hashem, Hocking Building
    • Steve Colon or Paul Kay or other TBD Hunt Development Group/Hunt Capital Group, Hocking Building

Logistics:

Program will be in-person and also livestreamed/recorded via Zoom.

 

 

 

Agenda (3 hours = 180 minutes)

Time

Topic

Speakers

5 minutes

Welcome, overview of the seminar content

Kiersten Faulkner

10 minutes

Purpose, Need and Objectives for Historic Tax Credits; Impacts for Preservation, Economic Development, Housing, Etc.

Kiersten Faulkner

25 minutes

Federal Tax Credits: Historic Preservation Components

John Sandor

15 minutes

Hawai‘i State Tax Credits

Jessica Puff

15 minutes

Case Study 1: Dearborn Building

Shelby Mendez & Tonia Moy

15 minutes

Case Study 2: Podmore Building (to be confirmed)

Ed D’Ascoli

15 minutes

BREAK

 

10 minutes

Combining Historic Rehabilitation & Low Income Housing Tax Credits

Hunt Development Group/Hunt Capital Group

10 minutes

Syndicating Tax Credits

Hunt Development Group/Hunt Capital Group

15 minutes

Case Study 3: Hocking Building

Mark Hashem

15 minutes

Tips and Recommendations

John Sandor

25 minutes

Audience Q&A/Discussion

All presenters

5 minutes

Conclusions & wrap up

Kiersten

 

Each Case Study:

  • What is the historic property: where is it, when was it built, historic significance
  • What is the project: what was done and how is it used
  • How the historic tax credits were used: overall financing strategy, syndication, stacked with other tax credits (federal, state, low income, etc.)
  • Any issues encountered, challenges to address, good outcomes or benefits
  • Any advice for others or lessons learned

 

REFERENCES: