Historic Tax Credits

Adaptive Reuse in Commercial Real Estate

Adaptive Reuse in Commercial Real Estate

In commercial real estate, adaptive reuse occurs when an older building is adapted for a different use than it was originally designed for. Adaptive reuse can have a variety of advantages for commercial real estate investors and developers. Primarily, this comes in the form of significant savings; demolition and new building construction can be extremely expensive, and adaptive reuse can lead to substantially lower construction costs.

Historic Tax Credits (HTC) in Commercial Real Estate

Historic Tax Credits (HTC) in Commercial Real Estate

The Historic Tax Credit, or HTC program, is a 20% federal tax credit designed to encourage investors to fund the substantial rehabilitation of historic structures. Since 1976, Historic Tax Credits have bee responsible for creating $144.6 billion in private investment in historic building rehabilitation while preserving more than 43,000 historic structures across the country. With the credit, an investor can take 20% of the Qualified Rehabilitation Expenditures (QREs) of the project as a deduction from their federal income taxes.