Federal Historic Rehabilitation Tax Credits

Developers who focus on the development and preservation of older buildings can make use of one of the most utilized and successful incentive programs, the Federal Historic Rehabilitation Tax Credit, codified at Internal Revenue Code Section 47.

Developers undertaking the rehabilitation of a historically qualified building typically look to “syndicate” their credits, or find a silent money partner who will pay for the tax credits and other project benefits. Such investors will join in a partnership prior to project completion, and will remain as a partner through the five-year “recapture” period in which the partnership needs to maintain ownership of the building (and avoid foreclosure or tax title seizure).

Clocktower Tax Credits has extensive experience with a large pool of such corporate partners, and brokers the investment for developers nationwide. We understand complex issues in the structuring of such partnerships, including master leases, non-profit participation, and phased construction; we work with the industry’s premier attorneys and accountants to model, underwrite and close on federal tax credit equity investment, providing a vital financing source for historic real estate developments.

State Historic Tax Credits

Over 35 states offer some form of state historic tax credit to supplement the Federal Historic Rehabilitation Tax Credit. The rules and regulations of each state historic credit are unique, and range from transferrable certificated credits to a partnership-style credit, which requires bringing a state tax credit investor into the project partnership.  Clocktower Tax Credits has a sophisticated understanding of each state tax credit program, and can work with developers to understand the nuances of their state tax credit program and identify the right investor for their historic tax credits in any state.

Clocktower Tax Credits or its principal has closed state and/or federal tax credits investments in over a dozen states, including California, Connecticut, Florida, Georgia, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Missouri, Nebraska, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Texas, Vermont, Virginia and Wisconsin