If you are interested in restoring a historic building in Downtown Anacortes we can connect you to financial and informational resources which make it easier to invest in a historic building that you love. At a high level, if you want to restore a historic building, you may be eligible for:
- a federal tax credit that’s 20% of your restoration investment,
- a ten-year special valuation period where substantial property improvements are not reflected in the property tax valuation, and
- other support in financing or grants depending on the use of building and work you are doing.
Contact us if you want to talk through this in more detail. We’d love to help you make a plan that invests in our history and future.
Washington Main Street Guide for Property Developers
If you want a full overview on Washington Main Street’s approach/support for property developers, there is a guide.
Federal Historic Tax Credit
This is a 20% Federal income tax credit on the qualified amount of private investment spent on certified rehabilitation of a National Register listed historic building. The National Park Service is the agency that administers the program at the federal level. The Washington Department of Archeology and Historic Preservation (DAHP) also has an integral role in the application process.
More details: https://dahp.wa.gov/grants-and-funding/federal-historic-tax-credit
Anacortes Special Valuation
The primary benefit of this Washington State law is that during the ten year special valuation period, property taxes will not reflect substantial improvements made to the property.
- Anacortes Details: https://www.anacorteswa.gov/DocumentCenter/View/15961/ARHP-More-Information-PDF
- Washington State Information: https://dahp.wa.gov/grants-and-funding/special-tax-valuation
Efficiency incentives and rebates from Puget Sound Energy
PSE has a large array of energy-efficiency programs that pay you incentives and rebates for reducing energy consumption. If you are retrofitting a historic building, you may be eligible for one or more of these incentives and rebates from PSE.
Federal Tax Incentives for Retrofitting Fire Sprinklers – new starting 2020
“Section 179 of the U.S. IRS Code allows a small business to write off the full cost of commercial fire sprinkler systems as an expense up to $1.04M. This enables may small businesses to immediately recover the costs of the upfront investment. Those who borrow money to pay for a project can fully deduct the interest expense of the loan.” Get the Guide.
Exemption from Minimum Parking Requirements
If you are remodeling an existing building in the Anacortes Central Business District (mixed use zone category), then you do not need to add new parking unless you are expanding your floor area by more than 50%.
Here are the details from AMC 19.64.060(C):
C. “Existing developments in mixed-use and industrial zones that change use or expand their net floor area by less than 50 percent are exempt from the minimum parking requirements of this chapter for the life of the building. Existing developments that expand their net floor area by 50 percent or more must meet the minimum requirements of this chapter. In no case may any new or expanded “development exceed the maximum parking spaces allowed by this chapter, unless meeting the requirements of subsection (E) below.“
What if my building doesn’t meet modern code?
Anacortes adopted the 2018 International Existing Building Code to make it easier for folks who want to update or restore buildings that pre-date the rules. The City of Anacortes would like to see investment in our historic buildings and will work with you.
AMC 19.14.025(A) adopts the 2018 International Existing Building Code.
Reduce financing costs
C-PACER allows property owners to access financing for qualifying energy efficiency, renewable energy, water conservation, and resiliency improvements for their buildings. The financing stays with the property, rather than with the building owner. Learn about CPACER, or read the technical guidebook for CPACER in Skagit County.
The Washington State Linked Deposit Loan Program helps businesses that are women or minority owned receive an interest rate reduction of up to 2%. See the brochure. Get full details.
Additional programs
There are other potential funding sources that may be helpful, including CPACER for energy and earth quake retrofitting if it is implemented at the Skagit county level. You can find links to this information in the Federal historic tax credit link above.
Does putting my building on the historic register restrict what I can do with my property?
National Historic Register
Under Federal Law, the listing of a property in the National Register places no restrictions on what a non-federal owner may do with their property up to and including destruction, unless the property is involved in a project that receives Federal assistance, usually funding or licensing/permitting.
From <https://www.nps.gov/subjects/nationalregister/faqs.htm>
Anacortes Historic Register
Placement on the register officially recognizes the historical importance of the property. Listing on the register DOES NOT affect future uses of the property. The owner may choose other uses for the property and may remove the property from the register at any time.
From: https://www.anacorteswa.gov/DocumentCenter/View/15961/ARHP-More-Information-PDF
Which Anacortes buildings are on a historic register or are good candidates for application?
Here is a list of buildings on the Anacortes Register of Historic Places.
More information for local historic preservation efforts and processes can be found here: https://www.anacorteswa.gov/1445/Historic-Preservation-and-House-History
Many additional buildings could be eligible if they go through the application process.
Reach out to Bret Lunsford at the Anacortes History Museum, and Jordan Hay at the Downtown Anacortes Alliance if you want help navigating the application process for the City or National Level. We can help!
