Nebraska would offer a tax credit for redeveloping and preserving historic properties, under a bill before the Unicameral.
Senator Jeremy Nordquist of Omaha introduced LB 191, calling it the Nebraska Job Creation and Mainstreet Revitalization Act.
“All of Nebraska’s neighboring states with an income tax have implemented very successful state historic tax credits,” he says. “Theirs range from 20%, which is where we’re at, up to 25% for our neighboring states. We’re one of few states in the country with an income tax that does not have some sort of historic tax credit program.”
Nordquist says the tax credit would carry a limit.
“A 20% credit on expenditures up to $5-million, which means the maximum that any project could qualify for would be $1-million of tax credits,” he says.
Recipients of the credits would make a contribution equal to one quarter of the credit amount, up to $25,000, to the Community and Civic Center Financing Fund to help communities with revitalization.
“The credits are transferable which is critical both for small developers and if a non-profit wanted to develop a historic building,” Nordquist says. “This credit will only be for income-producing properties and does not apply to owner-occupied single family residences.”
To be eligible for the credit under the bill, a property would have to be federally listed as historic, state listed as such or locally-designated as historic. The rehabilitation project would also have to meet standards approved by the Nebraska Historic Preservation Office.
By Doug Kennedy, KWBE, Beatrice