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City of Bloomington, Indiana

Is my property historic?

The word "historic" is often used to describe homes and buildings, but it can mean several different things:

A property may be called historic if it is listed in the 2001 survey Survey Results By Address. Properties in this list meet basic criteria for historic significance and have been officially documented in the City of Bloomington Historic Sites and Structures Inventory. If the property is identified as outstanding, notable, or contributing in the inventory, then it may mean it is required to go through demolition delay when complete or partial demolition is proposed Demolition Delay.

Designation on the National or State Level

Incentives

Investment Properties

Rehabilitation Investment Tax Credit (RITC)

A 20% federal tax credit for work performed on "certified structures," i.e. listed on or determined eligible for listing on the National Register of Historic Places, which are commercial, industrial or residential buildings. The building must be listed in the National Register of Historic Places prior to completion of the project and the building's final use must be income-producing. To qualify, expenses for rehabilitation must meet the adjusted basis of the building. The rehabilitation work is reviewed by the Indiana Division of Historic Preservation and Archaeology against the Secretary of the Interior's Standards for Rehabilitation. Qualification of the investor and the rules guiding the use of the credit can be complex so a consultant is needed to guide the project.

http://www.preservationnation.org/issues/rehabilitation-tax-credits/

Additional Credit for Older Income-Producing Properties

A 10% federal tax credit is available for the rehabilitation of "non-historic buildings." These are defined as buildings constructed before 1936 which are also used for income-producing purposes other than residential rental. The tax credit equals 10% of qualified expenses in a rehabilitation. The building does not need to be listed in the National Register.

Indiana Historic Rehabilitation Tax Credit (IHRTC)

The state of Indiana offers a Rehabilitation Investment Tax Credit (RITC) equaling 20% of rehabilitation costs for qualified work up to $100,000 on income-producing properties that are certified historic buildings. A net subsidy equaling 40% of qualified rehabilitation costs may be yielded by participation in both federal and state programs. Eligible properties include commercial buildings, factories, or even old houses but they must be income producing. The amount of money for this program is limited by an annual cap of $450,000. The minimum investment is $5,000 over 2 years and there is a per-project cap: $20,000. State Register properties qualify. The credit may be carried forward for 15 years. Pre-approval of work required.

http://www.in.gov/dnr/historic/3680.htm

Rehabilitation Tax Deduction

Indiana taxpayers who rehabilitate historic structures, commercial properties, or private homes can qualify for a tax deduction if the work increases the assessed value of the building. Deductions are limited to the historic portion of existing buildings that are at least 50 years old and costing at least $10,000. The amount of the deduction is equal to 50% of the increase in assessed value attributable to the rehab. The deduction may be taken only for the first 5 years following date of assessment increase. No historic approval required. The cap is $60,000/year for single-family and $300,000/year for other property. http://www.in.gov/dnr/historic/3680.htm

Owner-Occupied Residences

There are no federal credits available for owner-occupied properties at this time.

Indiana Residential Historic Rehabilitation Credit (RHRC)

This is a 20% income tax credit taken by homeowners spending a minimum of $10,000 in qualified expenses. The property must be the primary residence of the applicant and listed in the State Historic Register. The rehabilitation plan must be approved by the DHPA. There is an annual statewide cap on these homeowner credits of $250,000.

http://www.in.gov/dnr/historic/3679.htm

Rehabilitation Tax Deduction

Indiana taxpayers who rehabilitate historic structures, commercial properties, or private homes can qualify for a tax deduction if the work increases the assessed value of the building. Deductions are limited to the historic portion of existing buildings that are at least 50 years old and costing at least $10,000. The amount of the deduction is equal to 50% of the increase in assessed value attributable to the rehab. The deduction may be taken only for the first 5 years following date of assessment increase. No historic approval required. The cap is $60,000/year for single-family and $300,000/year for other property. http://www.in.gov/dnr/historic/3680.htm

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