4.C - Historic tax abatements - Proposed eligible expenses — original pdf

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Eligible Expenses for Historic District Tax Abatement DRAFT FOR DISCUSSION 5/14/2020 These amendments are proposed in an effort to more closely align the list of eligible expenses with the Federal Rehabilitation Tax Credit, which staff believes will add clarity and encourage use of the tax abatement. Proposed changes include expanded eligibility for permanent interior work (elements attached to the building) and soft costs. A certain proportion of expenses will still be required for exterior work, depending on property location (if in the East Austin Revitalization Area) and use (homestead or income-producing). Additions are not allowed by the federal tax credit and have not been allowed to date by the local tax abatement; that item is noted for discussion by the Commission. The Historic Landmark Commission must review and approve all eligible expenses. If the property owner completes the work themselves, s/he must submit at least one quote from a professional contractor providing an estimate of costs for materials and labor. Only work completed after the owner has obtained a Certificate of Eligibility can be considered. X = proposed to be added X = proposed to be removed Expense Proposed eligible Currently eligible Proposed ineligible Eligible for fed. historic tax credit X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Carpeting (if glued in place) Ceilings Chimneys Doors, exterior (repair and rehabilitation; replacement if staff concurs is necessary) Doors, interior Electrical wiring Energy efficiency improvements (weather-stripping, etc.; solar panels if essential to the operation and maintenance of the building) Fire escapes Floors (construction) Foundation (repair, replacement) Gutters Hazardous material abatement (lead paint, asbestos) HVAC systems (permanent) Light fixtures Roofing (repair, replacement) Painting, exterior Painting, interior Paneling or other permanent interior wall covering X X X X X X X X X X X X X X X X X X Proposed eligible Currently eligible Proposed ineligible Eligible for fed. historic tax credit X unsure Expense Plumbing and plumbing fixtures Reconstruction of documented missing architectural features Soft costs: architect fees, engineering fees, construction management costs, reasonable developer fees, financing fees Sprinkler/fire suppression systems Stairs, escalators, and elevators Structural repairs Tiling or other permanent floor covering Walls, exterior (repair, rehabilitation, and demolition of non-historic additions) Walls, interior (construction, demolition) Windows (repair and rehabilitation; replacement if staff concurs is necessary) Acquisition costs Additions (increase in total interior volume) Appliances Cabinets Carpeting (if tacked in place and not glued) Decks (if not part of original building) Demolition costs (removal of any building on property) Fencing Feasibility studies Financing fees Furniture Landscaping (historic exterior walls and features) Landscaping (non-historic features) Leasing expenses Moving (building) costs (if part of acquisition) New buildings (construction) Outdoor lighting (not physically on building) Parking lot Paving Planters Porches and porticos (if not part of original building) Retaining walls Security, operations, and maintenance systems Sidewalks Signage Storm sewer construction costs Window treatments (e.g., curtains, blinds) X X X X X X X X X X DISCUSS DISCUSS no X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X no