When it comes to purchasing real estate, you may want to consider what zoning laws apply to the property before you acquire it.
If your property is subject to Historic zoning regulations, you may be limited on the types of repairs improvements can make to the property once you buy it. This may impact your plans, depending on how you intend to use the property.
Overview of historic zoning laws
Often, buildings subject to historic zoning regulations
may not undergo changes that vary from the original historic design. You may restore and repair these buildings, however, if they are in line with the original plans. While these zoning laws may prevent you from modernizing a home or building in certain ways, they are meant to preserve the nation’s historic cultural resources.
Overview of tax incentives
Additional tax incentives apply to certain historic buildings, giving an incentive to investors.
In order to receive the tax credit, the National Register of Historic Places must certify the building and include it on the Register. If the Register does not already include the property, you may submit an application for approval. This applies to residential, commercial and industrial buildings.
Certified historic structures may qualify for a 20% tax credit under the following conditions:
- You perform a certified restoration of the building
- The building produces income in some fashion
Historic zoning laws may seem intimidating at first glance. These laws, however, ensure the preservation of historic places in our nation and provide investors with a great incentive to restore properties and share them with the public.