Special tax credits could help renovate historic buildings - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Special tax credits could help renovate historic buildings

Firestone Building Firestone Building
Firestone Building Firestone Building
Barfield Building Barfield Building
Plemons Village Plemons Village
Plemons Village Plemons Village

AMARILLO, TX (KFDA) - Some historic buildings in downtown Amarillo will begin renovations with the help of state and federal tax credits.

Downtown Amarillo Inc (DAI) is working with several property owners to use Historic Rehabilitation Tax Credits to revamp some downtown structures.

Valerie Magolan with the Texas Historical Commission spoke Tuesday at DAI's monthly "Lunch & Learn" series about how these credits will help historical preservation, and where the funding stems from.

"The monies come from the state and federal governments," said Magolan. "They are giving up amounts of money that they would be receiving as tax revenue, and they're giving credits out that people can take against their tax requirements."

These state and federal tax credits can combine to help renovate historic buildings.

"The projects can have up to 45% of eligible costs in tax credits, so it goes right to the bottom line of those projects," said Melissa Dailey, Executive Director of DAI. "Those credits can be sold and that can result in 30% or more equity in the projects just from those tax credits."

Buildings that can apply for these tax credits must be listed on the National Register of Historic Places, or apply to be on that register while applying for the credits. It's a lengthy multi-step process to apply, but the tax credits would help make these renovation projects financially possible.

Gary Jennings, owner of the old Firestone building, is waiting for tax credit approval before he starts renovating his building for retail and residential use.

"It does infuse capital into making the projects feasible," said Jennings. "There are significant accounting costs and legal fees involved in these projects that you don't normally have in just a standard development."

Jennings says if his project is approved for tax credits, renovations on the Firestone building could start as early as June 1. He will also seek tax credits for three historical buildings on 10th street collectively referred to as Plemons Village.

Owners of the Barfield Building will also apply for these credits. These buildings won't be trying to compete with each other - there is no limit on how many projects the Texas Historical Commission can fund.

Copyright 2016 KFDA. All rights reserved.

Powered by Frankly