Owners of historic residential buildings in Illinois are eligible for significant real estate incentives that can include freezing of tax assessments for eight years.

That incentive, codified in the Illinois Administrative Code (Ch. VI, Section 4150), is designed to encourage restoration and rehabilitation of historic homes that are occupied by their owners.

Several qualifications must be met, said David J. Dwyer of Amari & Locallo, Chicago, newsletter co-editor of the ISBA Young Lawyers Division.

First, the end use after rehabilitation must be an owner-occupied residence, such as single-family, a condominium or cooperative, or residence with up to six units.

Second, the property must be recognized as historic, such as being listed on the National or Illinois Register of Historic Places, or designated in an approved county or municipal landmark ordinance, or located within a historic district and considered significant.

Third, a certificate of rehabilitation ap-plication obtained from the Illinois Historic Preservation Agency must be submitted when the project is completed with the detailed information that is required.

Finally, the completed work must meet Standards for the Rehabilitation of Historic Structures, and the cost of rehabilitation must be 25 percent or more of the value of the building before construction.

The tax savings from this incentive can be considerable, Dwyer said. With the assessed valuation of a qualified building frozen for eight years, it would be taxed at the original valuation during that period.

For more information, call Dwyer at (312) 255-8550.