Partners in Your Investment
The Aberdeen Downtown Association is committed to encouraging economic growth and expansion of Aberdeen’s downtown district. Below you’ll find funding opportunities and grants aimed at aiding current and prospective businesses. If you have questions or would like our assistance in securing any of these financing options, please connect with us.
Tax Incentives for Preserving Historic Properties
These incentives were created to encourage investment in the rehabilitation and re-use of historic buildings.
- 20% Tax Credit – this incentive is available for the rehabilitation of historic, income-producing buildings that certified historic structures. Work must comply with the Secretary’s Standards for Rehabilitation and the IRS will define which expenses are eligible for credit. Owner-occupied residential properties do not qualify for the federal rehabilitation tax credit. Learn more about this credit before you apply.
- 10% Tax Credit – this credit is available for the rehabilitation of non-historic buildings placed in service before 1936. The building must be rehabilitated for non-residential use. Criteria relating to preserving existing walls and internal structure must be met to quality for the tax credit.
- Tax Benefits for Historic Preservation Easements – with this incentive, a property owner places restrictions on what modifications can be done to the historic property, through an easement. By donating an easement a property owner may be eligible for tax benefits, such as a Federal income tax deduction.
Each of these incentives come with a fairly complex set of requirements, learn more about each option advance of applying.
Tax Increment Financing (TIF)
Tax increment financing is a redevelopment tool authorized by state statute to help revitalize certain areas by eliminating conditions of blight and instituting conservation measures in order to encourage private investment and to enhance the tax base. At the time a TIF project is approved, current property values are frozen and remains at the level for the term of the TIF.
However, property values are not really frozen. The governmental entities continue to get their respective portions of tax for the term of the district even though the property has increased in value. As the value of the property increases, the property owner pays the frozen amount plus the increased amount due to improvements. The difference between the frozen amount and the increased amount is used to repay bonds or loans. Once the bonds or loans are paid off, the governments will receive the full, increased value of the district.
TIF’s also provide economic incentives for new businesses and industries interested in relocating within the district.
Review the TIF Evaluation Criteria outlined within the South Dakota Codified Laws. All sections of South Dakota Codified Laws are incorporated into this criteria by reference 11-09-01 to 11-09-47.
Deadwood Fund Grant
Through this historic preservation program, grants are available ranging from $1,000 to $25,000 for projects that retain, restore, or rehabilitate historic buildings, structures, and archaeological sites in South Dakota for residential, commercial, or public purposes. If your property qualifies as a contributing historic building, any renovation project is eligible to apply. Learn more.