There might be a little help on the horizon for the downtownBrookhaven businesses devastated by the May 24 fire, but also forother downtown business owners looking to restore their buildings’own unique historic feel.

In keeping with Brookhaven’s downtown restoration andbeautification efforts, the Brookhaven-Lincoln County Chamber ofCommerce held a seminar Thursday on federal and state tax creditsand other financial incentives for rehabilitation ofrevenue-producing historical buildings.

Mississippi Department of Archives and History Tax IncentivesCoordinator Brenda Crook said there are 70 contributing businessesin Brookhaven’s historic downtown district. Those buildings areeligible for tax credits if their rehabilitation expendituresexceed $5,000.

“Property renovation is a catalytic activity,” she said. “Andhistoric buildings provide communities with historiccharacter.”

Originally, property owners were offered a 20 percent federaltax credit for rehabilitation of historic buildings, and 10 percentfor non-historic buildings built before 1936. Lincoln County,though, is in the Gulf Opportunity Zone, which is better known asthe “GO Zone.”

Crook said under the Gulf Opportunity Act of 2005, PresidentGeorge W. Bush signed into legislation an opportunity for areasdevastated by Hurricane Katrina to receive extra help, bumping thepercentages up to 26 percent and 13 percent respectively. The GOZone can collect the extra tax credit percentage on any restorationdone between Aug. 28, 2005 and Jan. 1, 2009.

The tax credits go toward work done on structural components,but not on soft costs such as fees and furnishings, Crook said.

In order to qualify for the tax credit, business owners must berestoring a historical look to the building, not adding orenhancing the structure.

“It needs to be a project that restores the look and feel of thebuilding during a time of historical significance,” she said,saying that adding extra features such as balconies or slipcoversthat were not originally there could make a project ineligible forthe tax credit.

In order to qualify, a three-part historic application must befilled out and submitted. Crook said it must include photos of theinside and outside of the structure to evaluate its significancehistorically. The application must also include a description ofrehabilitation and a request for certification of completion.

The state tax credit was signed into effect by Gov. HaleyBarbour in March of 2006. To qualify for state credits, thebuilding does not have to be revenue-producing.

“It must be listed in the historic registry prior to asking forthe tax credits,” Crook said. “But the good news is that if itqualifies for the federal tax credit, it automatically qualifiesfor the state credit.”

Crook went over the many guidelines for qualifying for the taxcredits, including going step-by-step through the Secretary of theInterior’s 10 Standards for Rehabilitation.

Business and property owners with questions about can call theChamber of Commerce at (601) 833-1411.