Did you know?
Capitol Hill is the unofficial birthplace of Denver's preservation movement. Following the 1970s demolition of the Moffat Mansion (at 8th and Grant) Historic Denver, Inc. was created by concerned citizens in time to save another of our city's precious historic homes, that of the "unsinkable" Margaret Brown.
Colorado State Rehabilitation Tax Credit
Recently, Historic Denver worked with Colorado Preservation Inc. and the Colorado Legislature to reauthorize the Colorado State Rehabilitation Tax Credit that was scheduled to expire in 2009. As a result, the preservation tax credit has been reinstated for ten more years, ensuring continued support for the preservation of our state’s historic buildings.
The State tax credit covers 20% of qualified rehabilitation expenses for properties listed on the National Register of Historic Places, the Colorado State Register, or designated by a Certified Local Government, such as Denver. An attached provision suspends the tax credit in years in which the state’s economy does not grow at least 6%, however, the suspended tax credit can be taken (in full) in subsequent years where the state’s economy does exceed 6%. In order to qualify for the tax credit your property must meet specific guidelines. To learn more about the program as administered through Denver and to determine if your property qualifies, visit the Denver Landmark Preservation Commission’s webpage here
Be sure to wait until your preliminary application is approved before you begin rehabilitation work!
IMPORTANT 2011 Note: In 2011 the state budget is only projected to grow by 5.7%, which means the state tax credit can be earned but not taken for this calendar year. For a full explanation read this Fact Sheet produced by History Colorado.
Federal Historic Preservation Income Tax Credit
For income-producing properties, such as commercial or rental residential buildings, the Federal Historic Preservation Income Tax Credit is another option to recoup up to 20% of qualifying rehabilitation expenses. Eligible properties must be on the National Register of Historic Places and the rehabilitation project must be approved by the Colorado State Historic Preservation Office and certified by the National Park Service. To learn more about the Federal tax credit, visit the NPS’ website here