Historic Tax Credits: comparison for building rehabilitation

Are you considering a significant rehabilitation of an existing building?

Federal Historic Tax Credits (HTCs) can fund up to 20 percent of the costs of a rehabilitation project and state HTCs can provide even more. The program can be extremely beneficial, but there are many upfront issues to consider.

We have compiled a high-level comparison of key aspects of renovating an existing building with and without HTCs, including the following areas:

• General project characteristics
• Capital stack
• Developer fee
• Pro forma projections
• Ownership structure
• Construction
• Compliance
• Cash flow
• Exit strategy
• Design
• Timeline
• Property management

We hope you find this to be a useful tool in determining whether HTCs are a good fit for your next project.

For more information on this deal, or to learn how Baker Tilly’s Historic Tax Credit specialists can help, contact our team.