Welcome to Heritage Ohio’sTax Credit Workshop

Agenda 9:15 - How Tax Credits Work

10:15 - Preparation and Application Overview

11:00 - Structuring & Financing the Deal

12:00 - Networking Lunch

1:00 - Case Study

1:30 - Roundtables

3:30 - Wrap Up Questions & Answers

4:00 - Project Tour

How Tax Credits WorkHow Tax Credits Work

Mary Forbes Lovett

Duane Van Dyke, AIA, LEED AP

Why Historic Preservation?• Revitalizes our cool, hip, & walkable existing urban

neighborhoods and Main Streets• Improves Quality of Life • Attracts and retains the next generation of

Entrepreneurs• Creates jobs and increases property values• Contributes to income tax in the region• Contributes to the future success of our State

Cleveland

Colonial Marketplace

Colonial Marketplace

Cleveland Arcade

East 4th

Euclid & East 9th

668 Euclid

Cleveland’sHistoric

Gateway Neighborhood

Cleveland’sHistoric

Warehouse District

Tax credits were responsible for over almost 1 billion in

redevelopment in these two neighborhoods.

Tiffin

Bellevue

Saint Clairsville

What are the different types of credits available for real estate projects?

• Federal Historic Tax Credits

• State Historic Tax Credits

• Federal New Market Tax Credit

• State New Market Tax Credit

• Low Income Housing Tax Credits

• Façade & Lost Development Easements

What is a tax credit?

An indirect federal subsidy used to finance rehabilitation of historic and older buildings

What is the difference between federal and state historic tax credits?

• Types of qualifying structures

• Credit vs. Refund• Taxation of Benefit• End User• Timing

• Flexibility• Recapture• Scope of

Rehabilitation• Cap

What is the difference between a 10% & 20% credit?

How and when do you turn a tax credit into cash for your project?

Who can claim the credit, i.e. who is the investor?

What is recapture and how does it affect a developer?

Can a nonprofit be involved in a historic rehabilitation?

Disqualified lease

Tax exempt partner

Assuming that the building qualifies, when does it make sense

to use tax credits?

Can the HTC be combined with other tax credit programs?

Can you give me an example on how this works for a simple

transaction?

What are the advantages and disadvantages of doing a tax credit

transaction?