Do you own a historic home in the City of Little Falls, NY? Are you planning on making any repairs or improvements? If so, you could be eligible for a NY State tax credit. What is a “tax credit”? Wikipedia defines it as such: A tax credit is a tax incentive that allows certain taxpayers to subtract the amount of the credit they have accrued from the total they owe the state. Another way to think of a tax credit is as a rebate. “The Historic Homeownership Rehabilitation Credit program offers a state income tax credit equal to 20% of qualified rehabilitation expenses associated with the repair, maintenance, and upgrades to historic homes.” This quote is from the State website: https://parks.ny.gov/shpo/tax-credit-programs/ .
So what does that mean and what is eligible? The tax credit is explained above and it is limited to $50,000 (which means you can only spend $250,000 on your project to receive the maximum rebate), but most people don’t have to worry about that limit. The second part of the question, what is eligible, is a more interesting answer. Eligible projects include repairs or replacement in-kind of wood, masonry, interior and exterior finishes, floors and ceilings, plaster, windows, doors, chimneys, interior and exterior stairs, and roofs. Although, they are fairly strict about windows, if you have original windows they will request that you repair them
and add interior or exterior storm windows to retain the historic appearance. That being said, the repairs and the storm windows are eligible expenses. Also, energy efficiency items which include new heating, central air-conditioning, plumbing and fixtures, electrical wiring and fixtures, solar, geothermal and other mechanicals, are also eligible. However, projects such as landscaping, fencing, additions, and garage rehabilitation generally do not qualify. I should mention that in order for any interior or energy-related items to qualify, your project would require that some exterior repairs or replacements be included, such as exterior painting,
siding repair, roof or gutters, etc. This exterior work would need to account for at least 5% of the total project budget submitted. And there is a minimum of $5,000 for the total rehabilitation cost (but you get back $1,000).
The map shows our historic districts. If you are an owner-occupant of a house inside the district, chances are you would be eligible for the credit. Also, houses that are outside the district, that contribute to the architecture of the district, may also be eligible. If you are planning to do work on your house, you should take advantage of this opportunity. I have completed several of these applications for my clients and they have been awarded over $100,000 in total credits over the past few years. It is not difficult to complete or qualify but you do need to get it approved BEFORE you start any work. One last thing, unless you are a
licensed contractor, you cannot “do it yourself” (which is why I haven’t personally taken advantage of it).
Please, if you are at all interested, visit the website above or contact one of Preserve Our Past’s Board Members and save some bucks!
By: David Dardzinski
