Rehabilitation tax credits available from both the federal and state government are dollar for dollar reductions in income tax liability for taxpayers who rehabilitate historic buildings. West Virginia’s tax credit was recently raised to 25% and the federal credit is 20% of eligible expenses for income-producing properties that are certified historic structures on Main Street Grafton. The federal government further provides a 10% credit for non-historic buildings built before 1936. West Virginia offers a 20% credit for owner-occupied residential buildings. In some cases, taxpayers can qualify under both programs. The West Virginia State Historic Preservation Office (SHPO) administers both the federal and state tax credit programs in West Virginia.
Historic tax credits are the most significant reinvestment tools in the revitalization of West Virginia communities. According to the National Trust for Historic Preservation and the Historic Tax Credit Coalition, the economic impact of historic tax credit investment in West Virginia from 2002 to 2015 was substantial. During this time period the tax credits created nearly 3,600 jobs and generated $36 million in taxes.
Interested building owners should contact the City Manager for more information.
Additional information can be found at:
Applicants are strongly advised to consult the West Virginia State Historic Preservation Office before beginning the process.