There are ways to rehab a home

by Third District State Representative Jim Whorton

Every now and then, governmental units pass new laws or acts which can help us in rural areas as well as the big city. At the informational meeting which I had arranged for the Missouri Department of Economic Development (DED) to present in Gallatin, I learned of the Neighborhood Preservation Act and many of you may be able to qualify for its programs. It is designed to help offset the costs of rehabilitation of your home or even construct a new one. In order to qualify for the programs, we need to live in a geographic area (U.S. census block) that has relatively low to modest, average household income. Most of our local communities and/or rural areas should fall within that category.

The Missouri Department of Economic Development administers the programs which provide income tax credits to taxpayers for qualifying projects. Credits may be spread over several years. They may be carried back three years and carried forward five years. For those of us who might not have substantial taxable income, the credits may even be transferred or sold.

If you’re thinking of remodeling, you really need to check on this program. The credits available are basically 15% of eligible costs for new construction and either 25% or 35% for rehabilitation depending on the scope of the project. Minimum project costs are $5,000. A family could be considering new siding, windows, better insulation, etc., with perhaps $10,000 total cost and receive $2,500 tax credit after completion.

This program may apply to you; it’s available and several others, too. If your plans include building or remodeling, for more complete information you may contact the DED at Neighborhood Preservation Act, Community Development Group, PO Box 118, Jefferson City, MO 65102, [email protected]., or contact the regional office in Trenton at 1600 E. 9th St., 660/359-5960.