Historic Preservation Tax Incentives
Please join us at Preserve Orange County's next Preservation Roundtable on Saturday, September 21, from 9 am to 12:30 pm at St. James Episcopal Church, 3209 Via Lido, Newport Beach. REGISTER here.
A 1948 photograph of the original St. James Episcopal Church under construction. In the 1990s, the church was altered and enlarged by Orange County based architect, George Bissell. Click here to REGISTER. (Robert Gelvet, OC Courthouse Collection)
The topic for our fourth Roundtable is Tax Incentives for Historic Preservation. Tax incentives are among the most effective economic incentives that foster the preservation of residential neighborhoods and the revitalization of commercial districts. The property tax abatement program known as the “Mills Act” has been the single most important economic incentive program in California for the preservation of historic buildings by private owners. Enacted in 1972, the Mills Act legislation grants participating local governments authority to enter into contracts with owners of qualified historic properties who agree to actively maintain the historic character of their properties while receiving property tax relief.
Lesser known in Orange County is the Federal Historic Rehabilitation Tax Credit and the soon to be available State Historic Rehabilitation Tax Credit. These tax incentives encourage private sector investment in the rehabilitation and re-use of certified historic buildings. And since 2003, the federal tax credit has been used in just one rehabilitation in Orange County, the Old City Hall in Santa Ana, when the owners converted the interior into an updated office building.
We thought it was a good time to address tax incentives and their role in historic preservation. The California tax credit program is scheduled to be rolled out this fall so there’s an opportunity to learn how tax credits work, what types of buildings and projects are ideal candidates, and how the federal and state programs differ. We’ve invited Brent Parker, CPA, a partner in the Long Beach office of Novogradac, a leading public accounting, valuation, and consulting firm in the tax credit field.
With Orange’s active Mills Act program under scrutiny by public officials looking at ways to reduce the city’s budget deficit, it’s time to understand more about the Mills Act. What do elected officials consider when they approve a Mills Act program when it may reduce revenue? How does Mills Act reduce property taxes? How are the programs publicized in different jurisdictions? And how do cities process applications and monitor compliance? Our speaker, Ali Pezeshkpoor, AICP, is Planning Manager for the City of Santa Ana, where he has been since 2011. In his role, he oversees long-range and advance planning, development processing, public counter, historic preservation and urban design, neighborhood initiatives, environmental justice efforts, and cannabis programs.
Roundtables provide attendees the opportunity to connect with other preservationists from across Orange County and to learn how to advocate for historic and cultural resources in their communities. For this roundtable on tax incentives, we hope to see members of the real estate, development and architecture communities in attendance. Please help us spread the word by forwarding this email to people you may know in these professional communities.
Coffee and light refreshments will be served. After the event, join us on a tour of St. James Episcopal Church, designed by Orange County and Newport Beach architect George Bissell (1927-2010). To learn more about Bissell, see our Winter 2020 Tracts article about his regional work.
This event is free and open to the public, but we encourage attendees to become a member. Membership allows us to continue offering programs like this.
