Tax Credits Renovation of Historic Structures in Texas Colleges

In 2017 the Texas Legislature handed Property Monthly bill 1003, which designed the Texas Historic Preservation Tax Credit rating offered to condition college devices and other condition establishments of larger education and learning. Next this transform, universities and institutions of larger schooling are now able to utilize these Texas condition tax credits (“HTCs”) to offset the price tag of renovation tasks of historic buildings on their campuses.

To qualify, a task need to satisfy the subsequent necessities:

  1. The venture have to be for the renovation of a historic making.

  2. Architectural operate on the renovation have to fulfill certain rehabilitation criteria.

  3. Expense of the renovation will have to be in excess of $5,000.

  4. An application for participation in the plan must be submitted to the Texas Historic Fee prior to the task is concluded.

  5. The task need to have a documented positioned in provider day prior to January 1, 2022, furnished that tasks not concluded by that time might be phased to so that concluded products qualify for the tax credit score.

Properties ought to be selected as historic or be established as suitable for historic designation to take part in the software. Usually, this involves listing in the Nationwide Sign up of Historic Areas, designation as a Recorded Texas Historic Landmark or as a Condition Antiquities Landmark.  Nonetheless, a setting up that is not now mentioned or designated could even now be eligible offered it is at least 50 years aged (produced prior to 1971).

The Texas point out HTC method offers a tax credit score equivalent to 25% of the certified expenses of renovation of historic buildings. Point out universities and institutions of bigger schooling are eligible to promote the HTCs acquired by their projects. For instance, if a Texas condition university has a task to renovate a dormitory building made prior to 1971 with qualified renovation expenses of $2. million, the project would be eligible for up to $500,000 in tax credits. Those people tax credits can then be bought and the proceeds utilised to offset the whole price tag of renovation. 


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National Law Assessment, Volume XI, Variety 63