North Carolina Governor Pat McCrory’s Historic Rehabilitation Investment Program, in his proposed 2014-20015 budget would lower costs on historic preservation projects.

This could help future purchasers of old City Hall, Hotel Louise and the old Belk building, which all sit vacant in downtown Washington.

The North Carolina House of Representatives could derail the program, as they took the potential tax credits out of their version of the budget.

“Each of those buildings, when they were purchased, they all had some development plans for those buildings,” said John Rodman, Washington’s planning and development director. “Every one of those buildings factored in those tax credits as part of their budgets. If you don’t have those credits it could affect what you’re doing.

“It could also hurt on the sale of those buildings because the buyer might not have the advantage of those credits any longer,” Rodman said.

To receive the potential tax credits, buildings must be on the National Register of Historic Places. The rehabilitator must also present plans for the project and correctly complete work before any credit is given.

“The budget is tight and some of the tax credits come from the federal and state government,” Rodman said. “It’s passed down and I think everybody’s money is tight so they are trying to figure out a way to rework some of the tax credits.”

On income-producing historic projects, like a business located in a historical structure, a person is allowed credit equal to 20 percent of the expenditures that qualify for federal credits.

“I believe they are trying to work a way where you’re not going to have those state tax credits any longer,” Rodman said.

For non-income-producing historic structure like a homeowners house, a taxpayer that makes the rehabilitation expenses on a state-certified historic structure is allowed 30 percent credit towards the expenses.

According to the state, a taxpayer’s expenses must surpass $25,000 within a two-year period in order to qualify for the tax credits.