CONSORTIUM HISTORIC EQUITY FUNDS

To date, Consortium Historic Equity Funds (CHEF) have invested over $100 million into over $425 million of deals nationwide. CHEF was established to invest in Historic Rehabilitation Tax Credits and New Markets Tax Credits as allowed by Sections 47 and 45 of the Internal Revenue Code. Since 1976, the Federal Historic Tax Credit program has offered developers a highly beneficial subsidy (a dollar for dollar reduction of Federal Income Tax Liability) in order to encourage the preservation of historic buildings. The program is administered by the National Park Service in conjunction with the IRS and State Historic Preservation Offices.


Section 47 of the internal revenue code allows for:

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A 20% tax credit of Qualified Rehabilitation Expenditures (QREs) for substantial rehabilitations of income-producing historic buildings, and a 10% tax credit of QREs for substantial rehabilitations of non-historic, non-residential buildings built before 1936. A substantial rehabilitation is defined as rehabilitation with QREs during a 24 or 60 month period that exceed the adjusted basis of the building (purchase price and capital improvements minus value of the land and depreciation previously claimed).

 

 

STATE HISTORIC TAX CREDITS

In addition to qualifying for Federal Historic Tax Credits, many projects also qualify for State Historic Tax Credits.

As many as 30 States offer State Historic Tax Credits, although the types, amounts, and qualifications for the credits

vary from state to state.

States with beneficial state historic tax credit programs:* line

  • > Connecticut
    > Delaware
    > Iowa
    > Kansas
    > Louisiana
    > Maryland

  • > Massachusetts
    > Michigan
    > Mississippi
    > Missouri
    > North Carolina

  • > Ohio
    > Rhode Island
    > South Carolina
    > Vermont

  • > Virginia
    > West Virginia

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To date, Consortium Capital has been involved in syndicating State Historic Tax Credits in Delaware, Missouri, North Carolina, South Carolina, Rhode Island, Virginia, and West Virginia.

 

*Program requirements and availability can change frequently. Please inquire with us or consult your State Historic Preservation office for more information.

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