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Tax Breaks for Historic Homes
Historic homes come with a lot of restrictions when it comes to making any improvements on the property. This inconvenience and additional expanse come with a positive flip side, tax breaks for historic homes.
The Mills Act is the single most important economic incentive program in California for the restoration and preservation of qualified historic buildings by private property owners. Enacted in 1972, the Mills Act legislation allows local jurisdictions such as San Francisco to enter into contracts with owners of qualified historic properties who actively participate in the restoration and maintenance of their historic properties while receiving property tax relief. Property owners who participate in the program adhere to a schedule of maintenance repairs and upkeep on their historic property for the duration of the contract, which spans ten years and self-renews at the end of each year. In exchange, the property owner is entitled to an alternate evaluation of the property for tax purposes, which usually results in a reduced property tax bill.