Kearney Sponsors 25% Tax Credit for Historic Home Renovations
Difficult economic times have encouraged Senator Eric H. Kearney (D-Cincinnati) to introduce legislation providing a 25% tax credit for the renovation of homes built before 1950 in low income neighborhoods. The ongoing recession has homeowners struggling to not only pay their mortgage but to maintain the value of their homes with updates. Kearney hopes to spur development in areas of Cincinnati like the West End, Over-the-Rhine, Lower Price Hill, the East End, Riverside, and Prospect Hill.
“Both the property and the greater community benefit from home renovations,” Senator Kearney said. When homeowners invest in their properties the monetary value of the neighborhood increases along with its reputation.”
The legislation gives the Ohio Department of Taxation authority to administer a certificate for a 25% non-refundable tax credit not to exceed $30,000 per credit for home renovations. Only 5,000 certificates can be dispensed every year, and the credit may only be claimed for the taxable year specified in the certificate.
The taxpayer benefits too because they may also carry forward any balance of the credit in excess of the amount claimed for that year for up to five years, and must deduct any amount claimed for any such year from the amount claimed in an ensuing year.
Senator Kearney said today, “This legislation is drafted with the intent of addressing a need to rehabilitate and beautify owner-occupied homes built before 1950 in low-income census tracts. Providing incentives to home owners to invest in lower-income neighborhoods will add value to Ohio’s communities.”
Senator Kearney represents Cincinnati, Norwood, Deer Park, Silverton, Springfield Township, Golf Manor, St. Bernard, Elmwood Place, Cheviot, Addyston, North Bend, Columbia Township and Cleves.
