Last week NYS Assemblyman Sean Ryan announced that Governor
Cuomo has included an extension of the Residential Rehabilitation Tax Credit in
his amendments to the 2013-2014 Executive Budget Proposal. The residential
historic tax credit allows individuals to receive a tax break for improving
historically significant buildings or buildings in historic districts.
Before this announcement, the residential tax credit program
was slated to expire at the end of 2014. The program enables owners of
certified historic residences to take advantage of a state income tax credit of
20% of costs of improving their historic home. The owner of a home (individually
listed in the National Register or part of a National Register district)
located in an eligible census tract who undertakes pre-approved improvements
costing more than $5,000 is eligible for a state income tax credit of 20% of
the costs of rehabilitation, up to a credit of $50,000. At least 5% of that
cost must be spent on the exterior, i.e. re-pointing a porch or having the roof
replaced.
Thankfully, the tax credit program for historic homeowners
has been extended to 2019. If the program had not been extended it would have
automatically reverted to an earlier version. The earlier version of the
program would only allow for a few neighborhoods to be eligible and would be
limited to the amount of tax credits the state would provide. Additionally, if
the program had reverted to the earlier version, the newly designated Elmwood
Village District would have become ineligible for the tax credit benefits.
Governor Cuomo’s proposed extension will avoid those
problems, and the extended tax credit program will allow people to plan for
future improvements, generate economic benefit, and ensure the stability and
long term existence of historically significant areas.
“Extending the Residential Rehabilitation Tax Credit will
allow homeowners with historic property to move forward on important projects
that create good jobs for our local economy,” said Ryan. “Western New York is
home to many historic structures that can be transformed, renovated and brought
back to life. The extension of this tax credit will help to preserve our
historic structures, reduce blight and improve homes throughout the Elmwood
Village East District.”