Tax Credit Extension Encourages Revitalization, Construction
Washington, DC – July 19, 2011 – (RealEstateRama) — Congressman Mike Turner, Co-Chair of the Congressional Historic Preservation Caucus, has introduced legislation to encourage homeowners to preserve homes of historical significance across the country. The Historic Homeownership Revitalization Act (H.R. 2555) extends the tax credit currently in effect for commercial property owners to families living in historic homes. This legislation encourages the maintenance and rehabilitation of buildings which exemplify the culture and heritage of our communities. Furthermore, the Act incentivizes new construction on historic buildings; creating jobs.
“Across the country there are a number of communities with aging homes, with homeowners unable to keep up with their maintenance. Extension of this tax credit ensures that the history of our neighborhoods and nation remain intact for future generations,” said Turner.
The Historic Homeownership Revitalization Act would create a 20 percent tax credit — up to $60,000 — for homeowners who make expenditures to rehabilitate certified historic structures (listed in the National Register and is located in a registered historic district) in a way consistent with the historic character of the home and neighborhood in which the home is located.
“Maintaining a historic home is important for the continuity of communities. This bill provides funds for those homeowners who make their historic home their primary residence, or companies looking to rehabilitate property for future purchasers. Keeping residents in communities and adding new neighbors is good for real estate values and the construction companies who perform the work,” added Turner.
Homeowners would have a 2-year period to make qualified rehabilitation expenditures that exceed the greater of $5,000 or the taxpayer’s basis in the property, and must use the house as a principal residence. The credit would also be available for developers who rehabilitate homes for sale to individuals as their principal residence.