Tax incentive underused but provides bounty of opportunity for SelmaPublished 9:23pm Thursday, March 13, 2014
Selma is said to have the largest contiguous historic district in Selma and one of the largest in the nation.
Regardless of the size, its clear that Selma has a bounty of opportunity to use a federal tax credit that is close to being repealed.
U.S. Rep. David Camp, R-Mich., recently introduced a tax reform plan that would repeal a 20 percent tax credit for certain types of construction work. For example a $100,000 project would receive $20,000 in credit.
It may seem strange to highlight a credit that is close to repeal, but the value of a the credit becomes quite extraordinary when paired with a state, 25 percent credit. And, it’s still in effect, for now.
To date, the credit has been underused in Selma, a town with dozens of crumbling, historic structures.
Spending several hundred thousand dollars may be an unreasonable initial investment for many, but with a guaranteed tax credit after the project is complete, perhaps banks would be more forgiving.
If even two or three projects revitilization projects could be accomplished in Selma, it could change the entire skyline. And after the renovation, the building could be turned into rental property, adding additional income to your bank account. It certainly would be a large undertaking, but we would like to see more take advantage of the credit.