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Tax Incentives: Federal and State Programs
TARGETED JOB TAX CREDITS: Federal tax credits are given to companies that hire economically disadvantaged youths, welfare recipients and "hard-to-place" workers. The program provides the employers with reimbursement for 40% of the workers' first-year wages and on-the-job-training and employee placement services.
FEDERAL TAX ADVANTAGES FOR REHABILITATING HISTORIC AND OTHER BUILDINGS: the Tax Reform Act of 1986 allows for a two-tiered investment tax credit for commercial, rental-residential, income-producing properties:
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20% investment tax credit for certified historic structures that undergo certified rehabilitation
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10% investment tax credit for properties originally placed in service before 1936
Expenditures on rehabilitation must exceed $5,000 or the adjusted basis of the building, whichever is greater. A full basis adjustment is required of historical structures. Non-historic buildings must retain at least 75% of the existing external walls (with 50% remaining as external walls) and must have at least 75% of the internal framework remaining in place. There are several certified historic districts and structures in the city.
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