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Tax Credits Spur Capital Investment


restoration of 1868 Brooklyn No. 4 Hook and Ladder Firehouse in Oshkosh
Tax credits administered by the Wisconsin Historical Society for the rehabilitation of historic buildings have saved Wisconsin taxpayers $169.5 million in the past five years while helping to spur capital investments totaling more than $678 million, according to the Society's records. Two separate tax credit programs available through the Society mean owners of historic homes, businesses and rental properties can realize big state and federal tax dollar savings when they undertake pre-approved rehabilitation projects on qualifying properties. The programs fall into two categories: tax credit incentives for the rehabilitation of historic income-producing properties and for the rehabilitation of privately owned historic homes.

1868 Brooklyn No. 4 Hook and Ladder Firehouse in Oshkosh.
Before and after image of
1868 Brooklyn No. 4 Hook and
Ladder Firehouse in Oshkosh
Spurred in large part by these tax incentives, owners of income-producing properties in the state have invested more than $654 million in rehabilitating those properties over the five-year period. These owners qualified for a federal tax credit equivalent to 20 percent of the cost of rehabilitation. These credits generated savings of $131 million that stayed in Wisconsin rather than going into federal tax coffers. Those same property owners also qualified for a 5-percent state tax credit, generating an additional $32.5 million in savings.

Private homeowners spent another $24 million to rehabilitate their historic houses during the same five-year period, qualifying for a 25-percent credit that can be applied to their state income taxes. That means those homeowners saved $6 million for their investment in helping to preserve Wisconsin's architectural heritage while improving their own property.

"Historic preservation tax credits represent a true win-win opportunity for Wisconsin," said Society Director Ellsworth H. Brown. "These programs provide a powerful incentive for property owners to rehabilitate their historic buildings, and they benefit the communities in which the properties are located by encouraging capital investment."

For properties to qualify for either type of tax credit, they must be listed, or be eligible for listing, in the state or national registers of historic places. Other conditions require owners to carry out work in a manner sympathetic to their historic buildings and to spend a minimum amount on their rehabilitation projects. Interested property owners can apply for the tax credit programs through the Wisconsin Historical Society's historic preservation office.

To learn more about the tax benefits of restoring historic buildings write: Tax Credits; Wisconsin Historical Society; 816 State St.; Madison, WI 53706-1482. To speak to a tax credit specialist, call 608-264-6490.

:: Posted April 14, 2005
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