SALES TAX EXEMPTION ON LABOR (STATE)

• REQUIREMENT:  Listing on the National Register of Historical Places, no penalty for listing after start of construction.  State Comptroller does not consider buildings that are contributing to National Register historic districts to be listed on the National Register of Historic Places.  This is under investigation.
• BENEFITS:   Provides an abatement of the state labor tax for work done on the historic building.  If property is listed on the National Register after the project has begun, a refund can be applied for from the State Comptroller's office provided adequate records are kept.

ADA (American Disabilities Act) CREDITS  (Federal income tax credit and tax deduction)

Twp tax incentives are available to business to help cover the cost of making access improvements.  The first is a credit that can be used for architectural adaptations, equipment acquisitions and services such as sign language interpreters.  The second is a tax deduction that can be used for architectural or transportation adaptations.

Note that the credit cannot be used for the costs of new construction.  It can only be used for adaptations to existing facilities that are required to comply with the ADA.

FACADE EASEMENT - (Local)

REQUIREMENT:  A charitable donation of a facade easement to an organization that is exempt from tax under Internal Revenue Code Section 501(c)3.  A preservation easement is a legal agreement designed to protect a significant historic, archaeological or cultural resource.  The gift of a facade easement must be made for conservation purposes, such as the preservation of a certified historic structure and must be protected in perpetuity (forever).  IRS has concluded that the proper valuation of a facade easement should range from approximately 10% - 15% of the value of the property.  The IRS looks closely at projects that combine facade easements with the Investment Tax Credit Program and has published guidelines on combining the two programs.

BENEFITS: 

1. The historic property owner is assured that the building's facade will be maintained protected and preserved forever.
2. Taxpayer is entitled to a one-time deduction equal to the fair market value of the easement, which is generally the decrease in fair market value of the property caused by restrictions placed on the property because of the easement.
3. Ongoing reduction in the assessed value of the building and thus less tax is owed each year. 

FOR INFORMATION

Contact: Scott Miller

Cushman-Wakefield

713-963-2835

scott.miller@cushwake.com

The 3-story building would make ideal office space for any business that wants large open spaces with a high-tech/industrial look.  Creative enterprises will especially appreciate the ambiance of the building.  Perfectly suited as office space for Architects, Advertising Agencies, High-Technology start-ups, a Downtown Medical Center, or support facilities for the Ballet, Opera or Alley Theater. It would also work great as a Fashion and Design Center with showrooms, offices and common-use areas for productions and displays. Trendy offices for brokerages or traders.  Employment Agencies...especially agencies dealing with high-tech jobs.  Any of these uses could be complimented by using the basement as a Jazz Club/Bistro at night and sharing the available parking.

ALTERNATIVELY, a downtown Entertainment Center could be created using the soundstage as a Performance Venue/Nightclub and the rest of the building for Shops, Bistros and Bars to support THE MAIN DRAW.