Traveling Through Nebraska: Nebraska State Historic Tax Credits
Nebraska State Historic Tax Credits provide a valuable economic incentive for property owners who invest in the preservation and rehabilitation of historic buildings throughout Nebraska. Administered by the Nebraska State Historic Preservation Office (SHPO), these tax credits help offset the costs associated with preserving historic properties, promoting community development, and fostering economic growth.
The Nebraska State Historic Tax Credits program was established in 1993, modeled after the federal Rehabilitation Tax Credits program. Since its inception, the program has undergone revisions and amendments to ensure its continued effectiveness in supporting historic preservation efforts across the state. In 2014, the Nebraska state legislature increased the maximum tax credit allowed per project from 15% to 20% of eligible project costs.
Historic properties eligible for tax credits must be listed on the National Register of Historic Places (NRHP) or be certified as contributing to the significance of a registered historic district. Properties may also be eligible if they are individually listed on the NRHP, but this listing often requires a more extensive nomination process. A notable example is the Hotel Alex Johnson in Rapid City Rapid, located in the downtown area at 523 6th Street, which received tax credits for its restoration efforts in the 1990s. This notable historic hotel was originally built in 1928.
Once a property's eligibility is confirmed, property owners may apply for tax credits through the SHPO. Applications must include detailed project plans, cost estimates, and architectural renderings of the proposed work. Applications may also include tax credit allocations from other programs, such as those offered by local governments or private organizations. For example, in 2018, the City of Lincoln provided an additional tax credit allocation of up to 20% of total project costs for a rehabilitation project of its historic Haymarket District, specifically at 317 S. 8th Street in downtown Lincoln.
Upon completion of the project and submission of a final application, the SHPO reviews the completed project to ensure compliance with the Secretary of the Interior's Standards for the Treatment of Historic Properties. If compliance is verified, the SHPO issues a tax credit certificate that may be redeemed for state income tax liability. Tax credits can be transferred to other parties, such as investors or buyers, allowing owners to recoup part of the cost of rehabilitation.
Historic districts and buildings in rural Nebraska may also benefit from these tax credits. In contrast to urban areas, however, communities in rural Nebraska often have limited access to professional resources and technical expertise. As such, the SHPO and local preservation organizations may provide specialized guidance to aid property owners in navigating the tax credit application process. Furthermore, grants and technical assistance programs offered by these organizations may supplement the state tax credits, enhancing the economic incentives and making preservation more feasible for rural Nebraska property owners.
In summary, Nebraska State Historic Tax Credits provide a vital economic stimulus for historic preservation efforts across the state. While the tax credits have successfully encouraged the rehabilitation and preservation of many historic properties, they would be more effective when used in conjunction with other financing mechanisms and incentives. To enhance historic preservation initiatives in the long term, additional financing resources and increased support for preservation-focused grant programs are essential.
Overall, Nebraska State Historic Tax Credits have helped to successfully maintain Nebraska's historic architectural cultural legacy, improving various cityscapes and localities all over the state.
The Nebraska State Historic Tax Credits program was established in 1993, modeled after the federal Rehabilitation Tax Credits program. Since its inception, the program has undergone revisions and amendments to ensure its continued effectiveness in supporting historic preservation efforts across the state. In 2014, the Nebraska state legislature increased the maximum tax credit allowed per project from 15% to 20% of eligible project costs.
Historic properties eligible for tax credits must be listed on the National Register of Historic Places (NRHP) or be certified as contributing to the significance of a registered historic district. Properties may also be eligible if they are individually listed on the NRHP, but this listing often requires a more extensive nomination process. A notable example is the Hotel Alex Johnson in Rapid City Rapid, located in the downtown area at 523 6th Street, which received tax credits for its restoration efforts in the 1990s. This notable historic hotel was originally built in 1928.
Once a property's eligibility is confirmed, property owners may apply for tax credits through the SHPO. Applications must include detailed project plans, cost estimates, and architectural renderings of the proposed work. Applications may also include tax credit allocations from other programs, such as those offered by local governments or private organizations. For example, in 2018, the City of Lincoln provided an additional tax credit allocation of up to 20% of total project costs for a rehabilitation project of its historic Haymarket District, specifically at 317 S. 8th Street in downtown Lincoln.
Upon completion of the project and submission of a final application, the SHPO reviews the completed project to ensure compliance with the Secretary of the Interior's Standards for the Treatment of Historic Properties. If compliance is verified, the SHPO issues a tax credit certificate that may be redeemed for state income tax liability. Tax credits can be transferred to other parties, such as investors or buyers, allowing owners to recoup part of the cost of rehabilitation.
Historic districts and buildings in rural Nebraska may also benefit from these tax credits. In contrast to urban areas, however, communities in rural Nebraska often have limited access to professional resources and technical expertise. As such, the SHPO and local preservation organizations may provide specialized guidance to aid property owners in navigating the tax credit application process. Furthermore, grants and technical assistance programs offered by these organizations may supplement the state tax credits, enhancing the economic incentives and making preservation more feasible for rural Nebraska property owners.
In summary, Nebraska State Historic Tax Credits provide a vital economic stimulus for historic preservation efforts across the state. While the tax credits have successfully encouraged the rehabilitation and preservation of many historic properties, they would be more effective when used in conjunction with other financing mechanisms and incentives. To enhance historic preservation initiatives in the long term, additional financing resources and increased support for preservation-focused grant programs are essential.
Overall, Nebraska State Historic Tax Credits have helped to successfully maintain Nebraska's historic architectural cultural legacy, improving various cityscapes and localities all over the state.
