Petersburg is a great example of how the preservation of historic buildings benefits communities. While historic places connect us to our heritage and enrich the quality of our lives in countless intangible ways, their preservation also provides demonstrable economic benefits. Through the federal and state Historic Rehabilitation Tax Credit programs, property owners are given substantial incentives for private investment in preservation, resulting in enormous advantages to the public.
Since the inception of the Federal rehabilitation tax credit program in 1977 and the Virginia tax credit program in 1997, over 3,500 deteriorated historically significant buildings in Virginia have been rehabilitated and returned to productive use, representing a private investment of over $5.7 billion. This money represents costs paid into the construction industry for architects, contractors, craftsmen, and suppliers, with a corresponding increase in local employment.
A recent study by VCU’s L. Douglas Wilder School of Government and Public Affairs analyzes the Historic Rehabilitation Tax Credit program to better understand its costs and benefits to Virginia, its communities, and its historic buildings. Find the complete 56-page report here or review the 4-page Executive Summary or this Illustrated Summary.
The capital Improvement to the buildings results In increases in local property taxes, as well as a general enhancement in commercial activity. The rehabilitated buildings provide needed housing (in many cases, low- and moderate-income housing), and office, retail, and other commercial space. The communities benefit from property improvement, blight removal, and increased occupancy of buildings in historic core neighborhoods. Both the federal and state tax credit programs are administered in Virginia through the Department of Historic Resources. State tax credits are available for owner-occupied, as well as income- producing historic buildings. If your property is income-producing, you may also be eligible for federal tax credits. National Register of Historic Places-listed buildings are eligible for the use of the program.
For the most comprehensive information on how to utilize the Historic Rehabilitation Tax Credit program, visit DHR’s website. It is recommended that those who wish to use the program contact DHR early in the process to understand the program requirements and to ensure timely submission of project paperwork.
The City of Petersburg offers a local tax abatement program for improved historic properties. With varying details based on the location and age of the property, it offers a partial exemption of real estate property taxes based on the increase in assessed value above a predetermined base value, limited to the first $2 million of increased value for five years. Click this link to review the application and contact the City Assessor’s office for more information.
Make a donation or become a member today to help preserve Petersburg’s architectural heritage and promote its rich history.