Workshop focuses on income tax credits for restoring buildings

A tour of Missouri would show a considerable number of historically significant projects -- hotels in St. Louis, libraries in Kansas City and the renovated Marquette Hotel in Cape Girardeau -- that likely would never have happened without federal and state rehabilitation tax credits.

That's why those who own historic properties ought to know about the credits and use them where applicable, according to Mark Miles, director of the Missouri State Historic Preservation Office. Miles spoke at a workshop Tuesday night for property owners who are interested in taking advantage of such credits.

About 30 people attended the workshop that was sponsored by the Old Town Cape Economic Development Committee and the Missouri State Historic Preservation Office.

Miles said the Marquette is a perfect example.

"Here, the Marquette Hotel sat vacant for 30 years, and now it's making a wonderful contribution to the community," Miles said.

Miles explained that buildings listed on the National Register of Historic Places or are contributing elements to historic districts are eligible to seek a 20 percent federal rehabilitation tax credit and a 25 percent Missouri tax credit. Those who own a building built before 1936 that is not on the register may be eligible for a 10 percent federal tax credit, he said.

Miles said tax credits aren't for the purpose of "paint-up, fix-up." It's also not a grant, he said. People have to spend money to restore historic buildings in order to get the money back in the form of tax credits.

Miles said that both credits can be used simultaneously, if they meet criteria such as being an income-producing property. There are three other main questions: Is it a historic building, does the rehabilitation meet preservation standards and is it a substantial rehabilitation?

A property owner who got both credits and spent $100,000 on the project would get $45,000 in tax credits.