I want to take this opportunity to tell you about recent developments surrounding the tax credit that helps people who rescue historic businesses or homes.
This tax credit, which impacts 90 of North Carolina’s 100 counties, is expected to expire on Jan. 1 because legislators have decided not to renew the benefit.
This is a very important development for historic property owners.
What the Tax Credit in NC Did and Why It’s Going Away
According to the recent article I was reading, more than 2,300 projects have utilized the credits since the state expanded it in 1998.
Those credits have also helped foster almost $1.5 billion in investment, according to the article. What’s more, the credits are said to have contributed more than $124 million annually to the state gross domestic product, creating nearly 2,200 jobs a year.
Some neighborhoods that have particularly benefited from this tax credit have been the Oakwood neighborhood in Raleigh and the American Tobacco Campus in Durham.
Legislators have said they didn’t support the renewal of the tax credits because the state government is shifting away from tax policy that benefits certain groups.
But help for those who invest in historic buildings might not be completely gone. For instance, one legislator said that the state might consider at a later date whether to appropriate funds to improving aging buildings, versus an outright tax credit.
Still, that change is not likely to happen in time for the cancellation of the tax credit policy on Jan. 1, leaving many homeowners and historic building owners without that safety net at least for the immediate future.
Share Us Your Thoughts on NC’s Historic Tax Credit
What do you think of the removal of historic tax credits for people who own historic properties – including homes? I would love to hear your thoughts!
Even if you don’t own a historic home yourself, I suspect this state-level change will have an impact felt across the state.
We would love the opportunity to assist you with all of your real estate needs here in Wake County!
Until next time,