Old brick building

Historic Tax Credits

The trend to revitalize historic buildings nationwide is becoming more prevalent with the availability and value of Historic Tax Credits.

Leveraging deep knowledge of the Historic Tax Credits program at both the federal and state levels, Baker Tilly identifies optimized development capital stack opportunities for companies interested in the rehabilitation and re-use of historic buildings.

    At a Glance

    Recognizing the significant costs that come with rehabilitating historic buildings that lie dormant across the U.S., the Federal and State Historic Preservation Tax Credit programs help revitalize urban and rural communities by encouraging private sector investment in the rehabilitation and re-use of these buildings.

    Completed projects renew life in deteriorated business and residential districts, create new jobs and housing units, increase local and state revenues, and help ensure the long-term preservation of irreplaceable cultural resources.

    The federal historic tax credits (HTCs) apply specifically to preserving income-producing historic properties and have generated billions of dollars in historic preservation activity since the credit’s inception in 1976. In addition, many states have HTC programs that are commonly 20-25 percent of the eligible expenditures.

    HTCs come with a magnitude of financial and construction requirements that developers, owners, investors and lenders need to plan for appropriately to take advantage of the credits.

    Baker Tilly has developed a successful track record of identifying and securing HTCs and facilitating partnerships key to development. We understand the complex rules, regulations and requirements associated with federal and state HTCs and translate this understanding into optimized development capital for our clients.

    Leveraging deep knowledge of the HTC program and experience gained from successful projects, Baker Tilly provides the following services as a trusted HTC advisor:

    • Annual audit, financial statements and tax returns
    • Attorney collaboration
    • Construction budget review and analysis
    • Construction cost audit
    • Cost certification
    • Development support and advisory
    • Economic impact analysis
    • Financial modeling
    • Market study analysis
    • Pairing HTCs with other applicable credits and incentives
    • Qualified rehabilitation expenditure analysis
    • Review and comparison of financing options
    • Sourcing and securing equity investors and lenders
    • Structuring

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    By the numbers

    Old building

    $500M

    Actively involved in over $500 million in transactions, with property types including apartments, hotels, office, mixed use, craft breweries and not-for-profit tenants

    $100M

    Deals commonly ranging from $7 million to $50 million, with some as large as $100 million