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This monumental 1926 bank and hotel is the architectural centerpiece of the Union Street North-Cabarrus Avenue Commercial Historic District. This rehabilitation continues the special events venue in the hotel lobby and ballroom, transforms the banking lobby into a commercial space, upgrades the three retail spaces, and converts the vacant upper floor hotel rooms into 38 market -rate apartments. This project was spurred by the use of the federal and state income-producing historic tax credits with a private investment rehabilitation cost of $5.3 million.
Income tax incentives for the rehabilitation of historic structures are important tools for historic preservation and economic development in North Carolina, and keep us competitive with neighboring states. A federal income tax credit for the rehabilitation of historic structures first became available in 1976 and today consists of a 20% credit for the qualifying rehabilitation of income-producing historic properties.
• Since 1998 North Carolina has provided a piggyback tax credit for those taxpayers who receive the 20% income-producing federal tax credit. Currently the state income-producing tax credit ranges from *15 -25% to provide investors with combined state and federal tax credits against eligible project costs. In addition, the state currently provides *15% credit for the rehabilitation of non-incoming-producing historic properties, including private residences. (*State tax credits are capped per project.)
• Since the inception of the federal program in 1976 through December 2017, 3,665 completed "certified rehabilitation" projects have been reviewed by the N.C. State Historic Preservation Office, representing $2.57 billion of private investment in historic properties. The spinoff from all this activity includes job creation, downtown and neighborhood revitalization, improved community appearance, and greater community pride. Historic preservation is smart growth and smart investment. North Carolina is one of 35 states (of 43 who have a state income tax) that offers an incentive of a state piggyback historic tax credit in addition to the federal credits. In the National Park Service 35th Anniversary Report of the Federal Tax Incentives for Rehabilitating Historic Buildings, North Carolina was #4 in the nation in the number of completed historic rehabilitation tax credit projects according to a 10-year look at state-by-state certified project activity FY 2003-2012.
For more information, please contact Tim Simmons
919-807-6585 or tim.simmons@ncdcr.gov
Visit our website at www.hpo.ncdcr.gov