Kress

“The Hidden Value”

Valuable income tax incentives are available in North Carolina for the rehabilitation of Certified Historic Structures. These ownership credits come in two categories; income producing properties and non- income producing properties. These credits represent a dollar for dollar reduction in the owner’s tax liability, on an annual basis, relative to the tax credit category. This reduction in taxes ultimately reduces the purchase price of the property creating a “Hidden Value” to the owner.
Income Producing Properties
One of the Federal Government’s most successful and cost-effective community revitalization programs, the Historic Preservation Tax Incentives, reward private investment in rehabilitating historic properties such as offices, rental housing and retail stores, etc.
Owners of income producing properties that qualify through the Federal and State Preservation programs qualify for a 20% Federal and 20% State Tax Credits for a total combined credit of 40%. Tax credit percentage calculations are based on the total qualifying rehabilitation costs per property.
Non-Income Producing Properties
Owners of non-income producing properties, such as residences, that qualify through the Federal and State Preservation programs qualify for a 30% North Carolina State Tax Credit. Tax credit percentage calculations are based on the total qualifying rehabilitation costs per property.

http://www.nps.gov/history/tax.htm
(National Park Service – Federal Historic Preservation Tax Incentives)
http://www.hpo.ncdcr.gov/
(NC State Historic Preservation Office - Federal and State Historic Preservation Tax Credits)

 

Kress Plaza Historic Tax Credits

The Kress Plaza project offers both income producing and non-income producing Historic Tax Credits in its mixed use environment.

Commercial Space: Income Producing Property
Commercial spaces of 1,800 to 6,342 square feet of street level area and 4,405 square feet of basement are presently available for renovation within the Kress Plaza. Present (as is) tax credit allocations for these spaces, not including additional renovation costs are as follows:

Area	Federal Tax Credit	NC State Tax Credit	Total Tax Credits
Street Level	$43,996.83	$43,996.83	$87,933.66
Basement	$26,260.63	$26,260.63	$52,521.26

At present unfinished stage of development the total allocated tax credits per area are: Street level $13.87 per square foot and Basement $11.92 per square foot. All additional (finished) qualifying renovation expenses will be added to the total qualifying rehabilitation costs and will increase the total tax credits by the respected percentages.

Residential Condominiums: Non-Income Producing Property
There are presently two residential condominium suites available for purchase within the Kress Plaza. Each suite can be purchased for; non-income / owner-occupied residence or investment / income producing via leasing for residential purposes. Tax credit allocation for each suite is as follows:

Purchase Type	Suite	Federal Tax Credit	NC State Tax Credit	Total Tax Credits
Investment	“R”	$31,257.68	$31,257.68	$62,515.36
Owner-occupied	“R”		$46,886.53	$46,886.53
Investment	“S1”	$29,694.80	$29,694.80	$59,389.60
Owner-occupied	“S1”		$44,542.20	$44,542.20