Investing in West Virginia’s Heritage INTRODUCTION The West Virginia Historic Rehabilitation Tax Credit, commonly known as the State Historic Tax Credit (HTC), encourages the rehabilitation of historic properties and serves as a proven economic development tool. It has successfully leveraged private investment, created jobs, supported additional housing development and played a key role in downtown revitalizations in Charleston, Huntington, Martinsburg and Wheeling. Thirty-eight states, including West Virginia, maintain active state historic tax credit programs, all modeled after the successful Federal Historic Tax Credit (FHTC) administered by the National Park Service. In West Virginia, the State Historic Preservation Office (SHPO), under the Department of Arts, Culture and History, oversees the application and historic approval process, working closely with the Department of Revenue to administer the credits. THE WEST VIRGINIA HISTORIC TAX CREDIT Established in 1999, the program provides a 25% credit based on a developer’s qualified rehabilitation expenditures (QREs) for the substantial rehabilitation of income-producing properties. The credit offers a dollar-for-dollar reduction in state income tax liability. Developers can claim the credits but generally transfer (sell) them to raise additional capital needed to support the rehabilitation. Credits represent a significant portion of the capital for these renovations and cannot be used or monetized until the rehabilitation is completed and certified. The Benefits of Purchasing State Historic Rehabilitation Tax Credits By RANDALL L. SAUNDERS, ESQ. and JONAH D. SAMPLES, ESQ. Nelson Mullins Riley & Scarborough LLP 12 WEST VIRGINIA BANKER
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