Historic Redevelopment Tax Credits
Monarch Private Capital distributes Virginia historic rehabilitation tax credits. These credits are earned by real estate developers who rehabilitate historic structures in Virginia. They are difficult to obtain and typically require a year of advanced planning.
Characteristics of Virginia Historic Rehabilitation Credits:
- Credits are eligible against corporate and individual income taxes, bank franchise taxes and insurance company premium taxes.
- Credits may offset 100% of the taxpayer’s liability.
- Ten-year carry forward of unused credits.
Other States Offering Historic Redevelopment Tax Credits
Monarch Private Capital will identify credits for buyers in any state which has a transferrable historic tax credit. The following states sponsor historic tax credits:
Mill Redevelopment Tax Credits
South Carolina mill development credits are issued to developers of abandoned textile mills. While the credits have been in existence for some time, the supply of these credits is relatively scarce since financing for real estate developments has been difficult to obtain in the last few years.
Characteristics of South Carolina Mill Development Credits:
- Can be used to offset 50% of a taxpayer’s South Carolina corporate or individual income tax liability.
- Credits may be used to offset up to 50% of an insurance company’s premium tax liability.
- Partnership allocations of credits are discretionary.
- Five-year carry forward of unused credits.