Montclair Township has many historic buildings and historic districts, many of which are shown on the Historic Districts map. The Federal Historic Preservation Tax Credit Program provides federal income-tax incentives for the rehabilitation of historic income-producing properties. Under the provisions of the Tax Reform Act of 1986, a 20% tax credit is available for the substantial rehabilitation of commercial, agricultural, industrial, or rental residential buildings that are certified as historic. The credit may be subtracted directly from federal income taxes owed by the owner.
To qualify for the program, rehabilitation projects must involve income producing historic properties included in the National Register of Historic Places, either individually or as a contributing property in a historic district. The rehabilitation is reviewed by the SHPO and the National Park Service, and must meet the Secretary of the Interior's Standards for the Treatment of Historic Properties.
Last year, New Jersey, the 5th smallest state, was ranked 3 in the nation with 82 projects successfully completed under this Federal tax credit program. A total of $23,288,354 was spent on certified expenses in New Jersey alone. This large-scale private investment is a direct result of a historic preservation tool that is designed to encourage economic investment in New Jersey while helping to preserve the historic resources of the state. Many of these projects would not happen if not for the incentive offered by the Investment Tax Credit program (also know as the Federal Historic Rehabilitation Tax Credit program). Often these projects involve redevelopment in urban areas where they are critical to the revitalization efforts within our cities. For detailed program information, forms, and guidance, including information from the Internal Revenue Service, see the National Park Service website.