Governor green lights tax incentives for historic rehabs.

Governor George Pataki has signed New York State's first-ever tax incentives for rehabilitation of historic commercial and residential structures.

The legislation was sponsored by Assemblymember Ron Canestrari and Senators Vincent Leibell, Frank Padavan, and Catherine Young, and received a near-unanimous vote of support in the New York State Assembly and Senate.

Upon the Governor's signature, the State Historic Preservation Office (SHPO) in the Office of Parks, Recreation and Historic Preservation (OPRHP) assumes responsibility for program implementation, which will take effect January 1, 2007.

The NYS tax incentive for historic commercial (income producing) properties will complement the existing Federal Historic Preservation Tax Incentive program (aka, the Investment Tax Credit or ITC). National Register-listed commercial properties that have been approved to receive the 20% federal rehabilitation credit now qualify for the additional New York State credit, covering 30% of the federal credit value, up to $100,000 per project. Further details and program materials will be forthcoming from SHPO.

The historic residential properties program authorized by the legislation is for State and National Register-listed, owner-occupied residential structures, limited to such structures located in distressed census tracts. The New York State Income Tax credit will cover 20% of qualified rehabilitation costs of residential structures, up to a credit value of $25,000. Use of the residential program will also require a municipal resolution identifying the area(s) where the tax credit is authorized for use, as well as adoption of a historic preservation and community renewal plan. The specifics of these requirements will be determined by OPRHP during program development.

A list of census tracts qualified for the distressed "targeted areas" of the residential program is available from the State of New York Mortgage Agency.