Florida Historic Property Tax Credits Guide
Yes, Florida offers tax incentives for rehabilitating historic properties through both state and federal programs. Here are the key programs available:
Florida State Tax Incentives
- Ad Valorem Tax Exemption: Local governments can grant property tax exemptions for up to 10 years for historic properties that undergo rehabilitation.
- Property Tax Abatement: Available for commercial properties listed in the National Register of Historic Places or contributing to a National Register Historic District.
Federal Tax Credits
- 20% Federal Tax Credit: Available for certified historic structures
- 10% Federal Tax Credit: For non-historic buildings built before 1936
Requirements
- Property must be listed in the National Register of Historic Places or contribute to a historic district
- Rehabilitation work must meet the Secretary of Interior’s Standards
- Project costs must exceed the adjusted basis of the building
- Property must be income-producing
Frequently Asked Questions
Q: What is the minimum investment required?
A: The rehabilitation project must exceed the adjusted basis of the building or $5,000, whichever is greater.
Q: How long must I own the property?
A: The property must be owned for at least 5 years after completing rehabilitation.
Q: Can residential properties qualify?
A: Only income-producing properties qualify for federal credits, but local exemptions may apply to residential properties.
Q: What expenses qualify?
A: Construction costs, architectural fees, engineering fees, and other construction-related costs qualify.
Q: Is there a deadline to apply?
A: Applications must be submitted before rehabilitation work begins.
Q: How long does approval take?
A: The review process typically takes 60-90 days.
Q: Can I combine federal and state credits?
A: Yes, property owners can utilize both federal and state incentives simultaneously.
The Bottom Line
Florida’s historic property tax incentives can significantly reduce rehabilitation costs for qualifying properties. Success requires careful planning, adherence to preservation standards, and proper documentation. Consulting with preservation experts and tax professionals early in the process is highly recommended.