Property owners within the Russellville Downtown Historic District received some good news at a March 27th public meeting held at Russellville City Hall.
Phil Thomason, with Thomason & Associates, a preservation planner company based in Nashville, explained the process of nominating a city's historic district for Historic National Register status, and the federal and state tax incentives available for qualified property owners who make improvements to their property.
The City of Russellville, through a $10,000 grant (50 percent match), hired Thomason's firm to complete a downtown survey of the historic district, identify national register eligible properties, complete historic research on the district and prepare the National Register nomination for the district.
Thomason said he expects the nomination to be approved by the State of Alabama and Russellville's Historic District to be on the National Registry by the end of the year.
While designation on the historic registry is just honorary, it does carry several benefits for property owners within the district, including tax credits for renovation projects.
The Russellville Historic District runs from the corner of Washington Ave., and Limestone south to Montomery St., then east on Montgomery to Coffee Ave., then north on Coffee back to Limestone.
Not all buildings within the historic district will qualify for the tax credits. The property must be historic and have retained enough of its original design to remain historically significant.
The federal tax credit is available for repairs to exteriors, structural systems, repair of interior finishes, upgrades to HVAC, electrical and plumbing and architectural, engineering and land surveying fees.
Since 1976, when the tax credit program began, more than 43,000 projects have undergone $90 billion in renovations, all with a 20 percent federal income tax credit.
Expenditures must exceed the building's adjusted basis to qualify.
The State of Alabama also offers a 25 percent state income tax credit for eligible rehabilitation projects. Expenditures must exceed 50 percent of the building's purchase price or exceed $25,000 to qualify for state credits.
Property owners are encouraged to contact the Alabama Historical Commission at 334-242-3184 (www.ahc.alabama.gov) to request the commission look at the building to see if it's eligible for the tax credit.
Additionally, historical property owners whose buildings are designated as Class III property pay a reduced ad valorem assessment rate of 10 percent, Thomason said.
Property owners should apply for the tax credits early in the planning process and should take and maintain photographic evidence of the before/after condition of the property.
