Introducing Wisconsin’s Recently Enhanced "Historical Building Restoration Tax Credit"
In November 2013, the State of Wisconsin passed 2013 Wisconsin Act 62, legislation increasing the state's existing tax credit for rehabilitating historic buildings from 10% to 20% (this change comes shortly after the state's existing tax credit was increased from 5% to 10% earlier in 2013). In a press release, Wisconsin Governor Scott Walker explained "The passing of this legislation will revitalize downtown districts across the state, restoring these buildings will create a temporary and permanent economic increase for local and state economies."
The increased 20% tax credit will apply to qualified rehabilitation expenditures for taxable years beginning after December 13, 2013, for properties placed in service after December 31, 2013. Of particular note, Wisconsin's new state tax credit can be applied to both older and historic buildings. The legislation defines the two building types as follows 1) Certified Historic Structures: an individual property that is listed in the National Register of Historic Places, eligible to be listed in the National Register of Historic Places, or listed in the Wisconsin State Register of Historic Places, or a property that is a contributing part of a historic district that is listed in the National Register of Historic Places or Wisconsin State Register of Historic Places and 2) Non-Historic Buildings: buildings built before 1936. In order for certified historic structures to qualify, the individual seeking the tax credit must have obtained written documentation from the Wisconsin Historical Society approving the proposed preservation or rehabilitation plan. For non-historic buildings to qualify for the credit, owners must invest at least $50,000 of qualified rehabilitation expenses, the building must be placed in service after December 31, 2012, and wall retention requirements must be met in accordance with the rules stipulated by the 10% Federal Rehabilitation Tax Credit (26 USC § 47). Wisconsin’s enhanced state tax credit offers a substantial new economic incentive for the rehabilitation of older and historic buildings, especially when combined with existing 10% or 20% federal rehabilitation tax credits. For more information about the Federal Rehabilitation Tax Credit, please see our blog post: The Ten Percent Rehabilitation Tax Credit and How You Can Qualify For It.
At PVN, we are dedicated to increasing the use of older and historic buildings. Feel free to contact us at firstname.lastname@example.org if you are considering a project that could take advantage of Wisconsin's increased historic preservation tax credit.
To read the full text of the new Wisconsin legislation, click here.