Hi Ann:
Anyone who owes taxes can buy the tax credits and turn them in.
Many corporations try to buy at 80 cents on the dollar. If they owe
$100,000 to the feds they can buy face value ($100,000) of tax credits at
$80,000 and the feds will give them the full $100,000 in credit and they
can put the extra saved $20,000 in their pockets. What a deal if you owe
tax to start with.
Bill Greaves

> [Original Message]
> From: Ann Mintz <[log in to unmask]>
> To: <[log in to unmask]>
> Date: 10/25/2004 12:36:58 PM
> Subject: FW: FW: RE: [CHILDMUS] Money for capital expenses
>
> Dear William,
>
> I read your posting on childmus with great interest. (I direct a
historical
> society in a National Register building.)
>
> This is a dumb question, but who buys the tax credits?
>
> Ann Mintz
> President/CEO
> Chester County Historical Society
> West Chester PA
> >
> >
> >
> >
> > > [Original Message]
> > > From: William Morgan Greaves <[log in to unmask]>
> > > To: <[log in to unmask]>
> > > Date: 10/22/2004 10:28:17 AM
> > > Subject: FW: RE: [CHILDMUS] Money for capital expenses
> > >
> > > > To: CHILDMUS - A Forum for Childrens Museum Professionals
> > > <[log in to unmask]>
> > > > Date: 10/22/2004 7:07:48 AM
> > > > Subject: RE: [CHILDMUS] Money for capital expenses
> > > >
> > > > One thing that gets overlooked a lot is the federal tax credit
system.
> > > >
> > > >
> > > > The best thing since sliced bread is the federal and state tax
credits
> > > for historical building renovations. It's a bit tricky but well worth
it
> > if
> > > you can put up with it and end up selling the tax credits to recoup 80
> to
> > > 90 % of your investments.
> > > > The major drawback is the building exterior and any significant
> interior
> > > items (stairs, windows etc) must be preserved and restored to original
> > > condition. For Children's Museums this means that your exterior may
not
> be
> > > able to look like a children's Museum with the exceptions of removable
> > > banners and the like.
> > > > An example of a 1910 building restored (not as a Children's Museum)
> but
> > > as condos on three floors and a restaurant/bar on the ground floor is
on
> > my
> > > web page.
> > > > This building is a 1910 Victorian Italianate design. Total
renovation
> > > price (including buying the building) was $2,400,000. Tax credit
> retrieved
> > > was $1,940,000 that was sold for 85 cents on the dollar or $1,649,000
> +-.
> > > This equated to $2,400,000 - $1,649,000 = a move in price cost to the
> > owner
> > > of  $751,000 to own the building. The amount of tax credits received
is
> in
> > > direct proportion to the historic importance. Just be ready for a few
> > > headaches as the federal system is full of the most hair pulling
> > > bureaucrats you wold ever find anywhere.
> > > >
> > > > To see the example go to www.architectsindesign.com
> > > > Select institutional
> > > > Select the cape Charles and you can see the building.
> > > >
> > > > William M. Greaves AIA, NCARB
> > > > President
> > > > Architects iN Design
> > > > 1232 Wivenhoe Court
> > > > Virginia Beach, Virginia 23454
> > > > http://www.architectsindesign.com
> > > > [log in to unmask]
> > > > 1(757) 496-6489 phone/fax
> > > > 1(757) 478-6489 cell
> > > >
> > > > > [Original Message]
> > > > > From: grahams <[log in to unmask]>
> > > > > To: CHILDMUS - A Forum for Childrens Museum Professionals
> > > <[log in to unmask]>
> > > > > Date: 10/21/2004 7:15:40 PM
> > > > > Subject: [CHILDMUS] Money for capital expenses
> > > > >
> > > > > OK, we need money for remodeling the building (1920's) to make it
> code
> > > > > compliant for a museum.  What were the best things you did to get
> the
> > > > > funding for that expense?  Educational exhibit grants seem to be
> > > numerous,
> > > > > but capital grants are few and far between.
> > > > >
> > > > > Caroline'
> > > > > Education Station
> > > > >
> > >
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