NEWS

Tax incentives for Donaldsonville Historic District

Staff Writer
Donaldsonville Chief
Andrea McCarthy, Rotary President Marvin Gros, Director for Tax Incentives Alison Saunders, Mainstreet Design Coordinator Leon Steele, Donaldsonville DDD Executive Director Missy Jandura, and Rotarian Eron Thomas stand after the tax incentives program at the Rotary Club’s weekly luncheon at Café Lafourche last Thursday.

With Donaldsonville having the second largest Historic District in the State of Louisiana many buildings could be eligible and could qualify for Federal Historic Rehabilitation Tax Credits.

The program provides a 20 percent tax credit for rehabilitation expenditures to a certified historic structure. However there are a few requirements, but the Donaldsonville Downtown Development District and Mainstreet Donaldsonville believes the historic area still could qualify.

The requirements are:

The building must be depreciable property–rental or commercial.

Restoration must be substantial–exceeding the adjusted basis of the property, purchase price less value of the land, or a minimum expenditure of $5,000; if the property has been depreciated.

Rehabilitation expenditures that qualify include items directly related to the repair of the structure: architectural fees, engineering fees, paint, wiring, plumbing, roof repair, etc.

The tax credit can be carried back one year and forward twenty years.

If a building is not located within a historic district and was constructed prior to 1936, it may qualify for a 10 percent tax credit if restoration is substantial–exceeding the adjusted basis of the property - purchase price less the value of the land.

There are also State Commercial Historic Tax Credits available.

For historic buildings and residences located in a DDD and classified as historically significant by Louisiana Division of Historical Preservation, the state offers a 25 percent tax credit based on eligible costs or rehabilitation. This includes labor, materials, and related expenses.

Eligible property includes:

Buildings must be at least 50 years old to be eligible for the State Commercial Credit.

Residential rental property or nonresidential depreciable property in a DDD.

Properties located within the boundaries of a cultural district or downtown development district are eligible to apply.

Classified as historically significant by the state Department of Culture, Recreation and Tourism.

A credit Cap of five million dollars per taxpayer, or related entity, within any one DDD.

Credits may be carried forward for up to five years and may be sold

A nominal application fee of $250 is paid to the State Division of Historic Preservation.

The State Commercial Historic Tax Credit Program is administered by the Division of Historic Preservation located within the Louisiana Department of Culture, Recreation, and Tourism.

Please contact Allison Saunders or (225) 342-8160 for additional information and eligibility requirements.

State Residential Historic Rehabilitation Tax Credits:

For residences located in a DDD and classified as historically significant by Louisiana Division of Historical Preservation, the state offers a tax credit up to $25,000 per structure based on eligible costs or rehabilitation.

Eligible property includes:

Owner occupied residential or owner occupied mixed use structure.

Listed on the National Register of Historic Places.

Classified as historically significant by the state Department of Culture, Recreation and Tourism.

Located in a DDD.

Vacant, at least 6 months, and blighted buildings at least 50 years old.

Rehabilitation costs must exceed $20,000.

Credits are calculated using a formula based on a percentage of adjusted gross income of the owner-occupant.

A flat 25 percent credit is offered; additionally, If, however, a building is determined to be vacant and blighted, the credit award is increased to 50 percent. One of the areas of eligibility for this program, in addition to being located in a DDD, is being a vacant and blighted building at least 50 years old; vacant for at least six months.

The State residential Historic Rehabilitation Tax Credit Program is administered by the Division of Historic Preservation located within the Louisiana Department of Culture, Recreation, and Tourism. Please contact Allison Saunders at (225) 342-8160 for additional information and eligibility requirements.

Downtown Cultural District

Exemptions of state and local sales tax on the sale of original, one-of-a-kind pieces of artwork.

The local sales tax exemption applies to businesses with an established location within the Cultural Product District. This does not apply to businesses with no fixed locations within the district, such as businesses that would sell at festivals, fairs or other events held in the district.

"Works of art" shall mean visual arts and crafts including but not limited to paintings, photographs, sculpture, pottery, and traditional or fine crafts. The Department of Culture, Recreation and Tourism may determine whether or not an item meets this definition as well as whether the item is "original, one-of-a-kind."

The seller must complete a sales tax exemption form (R-1384).

The Downtown Cultural District is administered by Louisiana Department of Culture, Recreation, and Tourism. Please contact Gaye Hamilton at ghamilton@crt.la.gov (225) 342-8161 for additional information and eligibility requirements.

For more information on the Donaldsonville DDD and Mainstreet Donaldsonville contact Missy Jandura, Excecutive Director, at 225-323-2555.