Incentives - Historic Preservation

Historic Preservation

A variety of special incentives are available to owners of historic properties in the City of Spokane:

Historic Special Valuation Tax Incentive: "Special Valuation" is the revision of the assessed value of a historic property which subtracts, for up to ten years, such rehabilitation costs as are approved by the Spokane City-County Landmarks Commission. To be classified as eligible for special valuation, a property must first meet the following criteria:

• The property must be listed on the Spokane Register of Historic Places, individually, or certified as a contributing property within a Local Register Historic District.
• The Historic Landmarks Commission must have approved the work that was completed.
• Work must have been completed no more than 24 months prior to the application.
• Rehab costs must be equal to at least 25% of the assessed value of the structure, not including land, prior to rehabilitation. The County Assessor's Office sets the value of the property.

Federal Investment Tax Credit: A Federal income tax credit may be granted to commercial properties that are listed on the National Register of Historic Places. Rehabilitation must comply with Federal standards for preservation of historic properties. The tax credit can be amortized. This dollar-for-dollar federal income tax credit is equal to 20% of the construction costs for rehabilitating an income-producing building; the credit may be used by the building owner or "sold" to a tax credit investor.

Facade Easement: In exchange for the donation of an easement, consisting of either a portion of land or a building's facade, an owner may: a) claim a one-time Federal income tax deduction, and b) realize a permanent property tax reduction based on the value of the donated property. The easement must be granted to a qualified entity (such as the City of Spokane); and in exchange, the owner must agree to maintain the donated property. Under the Internal Revenue Service's "before and after" valuation test, the fair market value of the property after the granting of the preservation easement is subtracted from the property's fair market value prior to the easement donation. The difference is the value of the preservation easement for federal income, estate and gift tax purposes.

Conditional Use Permit: A permit allowing a non-conforming use may be granted to an historic property by the City or County Zoning Board. The property and use may be declared eligible by the local Historic Landmarks Commission.

More information is available at http://www.historicspokane.org/incentives.htm.