Investment Properties

Investment properties in North Carolina are both historic and contemporary. A useful city to cite for examples of both is the state capital of Raleigh. Lying in the heart of the central Piedmont of North Carolina, it was chosen precisely because of this central location.

The city, founded in 1792, was named in honor of Sir Walter Raleigh. It was established on 1,000 acres bought by the state from Joel Lane, a state senator and Revolutionary War veteran. More than 200 years before, in 1585, Sir Walter Raleigh had sent two explorers to Roanoke Island of today's North Carolina, where they established a short-lived colony. The first town in the state came more than 100 years later--Bath, founded in 1705.

Options for Investment Properties in North Carolina

Both federal and state programs offer tax incentives for historic investment properties. The federal program offers essentially a dollar-for-dollar reduction of federal income tax up to 20 percent of the cost of rehabilitating certified historic structures. The state program increases its credit from five to 20 percent. It also provides a 30 percent credit for rehabilitations of historic properties, including private houses.

Other investment properties programs include renewable energy property. The credit here is for 35 percent of the cost of such property built, bought or leased and put into service in the given tax year. Another program focuses on rental properties rented to those with incomes at 50 to 80 percent of the state median. One requirement is that at least 35 percent of the cost of the property must be reinvested in it.