State Historic Tax Credits
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More than 30 states have established state historic tax credits to provide additional financial incentives for the rehabilitation of historic properties. Most of the state programs are based on the federal Historic Rehabilitation Tax Credit program, although application processes, award amounts, and award procedures vary by state.
State historic tax credits can be used in conjunction with the federal credits for income-producing properties. Although Ryan focuses on income-producing historic rehabilitations, many state programs also offer historic tax credits for rehabilitation of owner-occupied residential properties.
Click the map below to quickly navigate to the state.
Alabama
Alabama Historic Rehabilitation Tax Credit Program
Program Overview
In addition to the federal program, the Alabama Historic Rehabilitation Tax Credit offers a 25% refundable credit for the certified rehabilitation of eligible income-producing and residential properties* older than 60 years old. Properties must be listed in or eligible for the National Register of Historic Places (NRHP).
*Please note: After December 31, 2022, any property occupied by an owner and used exclusively as a primary or secondary residence will no longer be eligible for a state historic tax credit.
Annual Cap
- $20 million
Project Cap
- $5 million per project (commercial)
$50,000 per project (residential)*
Program Details
- 40% ($8 million) of credits reserved for counties with 175,000 or fewer people (for the first six months of the year)
- Unused portion of county set-aside goes back into main pool of funding
- Excess tax credits will be carried forward each year
- Minimum expenditures: 50% of purchase price or $25,000, whichever is greater
- Refundable
- Transaction cap: $50,000 for residential homes
- Applications will be reviewed by the Historic Tax Credit (HTC) Evaluating Committee
- Eligible costs must exceed 50% of the owner’s original purchase price or $25,000, whichever is greater
- Owners claim the tax credit in the tax year in which the building is placed in service. The credit is transferable only one time. Any unused portion of the tax credit is refundable
- Those receiving a reservation have up to five years to complete the project and take the tax credit
- Any nonprofit receiving a state HTC must file a state tax return for the year the project is placed in service
- Any tax credit transferred must be valued at 85% or greater of the present value
- Sunset date: December 31, 2022
Who Can Use the Credit?
The credit is available to private homeowners and owners of commercial properties and is transferable once by certificate.
Important Links
Alabama Historical Commission (AHC)
Alabama Tax Incentives for Historic Properties
Alabama Historic Preservation Tax Credit Fact Sheet
Arkansas
Arkansas Historic Rehabilitation Income Tax Credit Act
Program Overview
The Arkansas Historic Rehabilitation Income Tax Credit Act offers a 25% credit for certified rehabilitation of eligible income and nonincome-producing properties.
Annual Cap
- $4 million in 2021
- $8 million from 2022 on
Program Details
- Income-producing properties that start before July 1, 2017 can claim a 25% credit on up to $500,000 in qualified rehabilitation expenses
- Income-producing properties that start July 1, 2017 or later can claim a 25% credit on up to $1.6 million in qualified rehabilitation expenses
- Nonincome-producing properties can claim a 25% credit on up to $100,000 in tax credits
- Credit is only allowed one time for each eligible property in a 24-month period
- Applications are prioritized by the following selection criteria: result in the creation of a new business, result in the expansion of an existing business, establish or contribute to the establishment of a tourism attraction as defined by the Department of Parks and Tourism, contribute to the revitalization of a specific business district, or be a key property in the revitalization of a specific neighborhood
- Recapture: same as federal
- Sunset date: December 31, 2037
Who Can Use the Credit?
The commercial credit is freely transferable by either direct sale or disproportionate allocation among partners of a syndication partnership.
Important Links
Arkansas Historic Preservation Program (AHPP)
Arkansas Rehabilitation Tax Credits
California
California Historic Rehabilitation Tax Credit Program
Program Overview
In addition to the federal program, the California Historic Rehabilitation Tax Credit offers a 20% credit against personal income and corporation taxes for qualified rehabilitation expenses (QREs) for the rehabilitation of certified historic structures OR a 25% credit for the following: projects located on federal surplus property, structures with affordable housing, structures in designated census tracts, structures that are part of a military base reuse authority, or structures that are transit-oriented developments.
Annual Cap
- The annual cap is $50 million ($2 million set-aside for residences and $8 million set-aside for developments with qualified rehabilitation expenses of $1 million or less).
Program Details
- No transaction cap
- Allocated on first-come, first-served basis
- Funding must be provided for each year by the state legislature
- Sunset Date: December 31, 2026
Important Links
California Tax Credit Allocation Committee
California Office of Historic Preservation
Colorado
Colorado Job Creation Main Street Revitalization Act
Program Overview
In addition to the federal program, the Colorado Job Creation Main Street Revitalization Act offers a 25% credit against individual and corporate taxes for owners and long-term qualified lessees for the first $2 million in qualified rehabilitation expenditures (QREs) and 20% on the remaining QREs for commercial properties.
Aggregate Cap
- $10 million
Project Cap
- $1 million
Program Details
- Credit goes to 30% in a designated disaster area
- Credit goes to 35% for projects in defined “rural” communities (under 50,000 in population)
- 50% of credits to be awarded to projects with QREs less than $2 million; 50% of credits to go to projects with QREs of $2 million and above
- If both the federal credit and state credit are applied for, only a federal application needs to be filled out
- Carry forward: 10 years
- Recapture: same as federal
- Program details for residential properties: 20% credit for qualifying residential properties and 30% starting in 2020 for communities under 50,000 in population. There is no aggregate statewide dollar cap, but per project, there is a $50,000 cap per year
- Sunset date: December 31, 2029
Who Can Use the Credit?
The credit is available to Colorado historic property owners and long-term qualified lessees. The credit is freely transferable by either direct sale or disproportionate allocation among partners of a syndication partnership. Use by nonprofits is permitted.
Important Links
History Colorado (Colorado Historical Society)
Colorado State Historic Preservation Office (SHPO)
Connecticut
Connecticut Historic Rehabilitation Tax Credit Program
Program Overview
The Connecticut Historic Rehabilitation Tax Credit Program provides a 25% tax credit for all qualified rehabilitation expenditures (QREs) on the rehabilitation of an income-producing historic structure.
Connecticut establishes three different types of buildings that qualify for the credit:
- a building that has five or more residential units,
- a building that is mixed residential and nonresidential use, or
- a building that is of nonresidential use “consistent with the historic character of such property or the district in which such property is located.”
Aggregate Cap
- $31.7 million (annually)
Project Cap
- $4 million
Program Details
- Credit may be combined with the federal historic tax credit
- Credit goes up to 30% if the project includes an affordable housing component provided to at least 20% of the rental units or 10% for sale units that qualify under CGS Section 839a
- Carry forward: five years
- If the residential portion of a mixed residential and nonresidential rehabilitation is not completed within the scheduled time frame, 100% of the tax credit is recaptured
Connecticut Historic Structures Rehabilitation Tax Credit
- The state will allocate a 25% tax credit for total qualified expenditures for conversion of historic commercial, industrial, institutional, former government buildings, cultural building, or residential property of more than four units to residential use, including rental or condominium units
- Annual state cap: $15 million in tax credit reservations are available in three-year cycles
- Transaction cap: $2.7 million in tax credits
- Carry forward: five years
Who Can Use the Credit?
The credit is available to commercial property owners. All or part of the Connecticut Historic Rehabilitation Tax Credit can be transferred or conveyed to other Connecticut taxpayers up to three times.
Important Links
Connecticut State Historic Preservation Office (SHPO)
Connecticut Historic Structures Rehabilitation Tax Credit
Delaware
Delaware Historic Preservation Tax Credit Act
Program Overview
The Delaware Historic Preservation Tax Credit Act offers a 20% credit for properties eligible for the federal Historic Tax Credit (HTC) program, a 30% credit for homeowners and nonprofits, and a 100% credit for resident curatorship properties.
Aggregate Cap
- $8 million
Program Details
- A 10% bonus credit applies for depreciable projects that qualify for low-income housing tax credits and homeowners who meet low-income qualifications
- 20% of qualified expenditures for income producing buildings and residential buildings
- An additional 10% for low-income housing developments
- $30,000 cap for single rehabilitation of owner-occupied property
- 30% for all other historic buildings
- Carry forward: 10 years
- Recapture: same as federal
Who Can Use the Credit?
The credit may be transferred in whole or in part at any time during the 10-year period. Commercial property owners may use the credit, and property owners without tax liability, such as nonprofits or local governments, can take part in the program.
Important Links
Georgia
Georgia Income Tax Credit Program for Rehabilitated Historic Properties
Program Overview
The Georgia State Income Tax Credit Program for Rehabilitated Historic Properties provides a state tax credit equal to 25% of qualified rehabilitation expenditures (QREs) with project credit caps set at $300,000, $5 million, and $10 million. To receive the $10 million cap, the project must generate 200 or more full-time, permanent jobs or $5 million in annual payroll.
Aggregate Cap
- $300,000 Credit Cap: none
Aggregate Cap
- $5 million and $10 million Credit Caps: $25 million annually for all projects
For 2022: $5 million combined for all projects earning $300,000 or less; $25 million for all projects earning more than $300,000.
- $5 million; $10 million in cases where a project creates 200 or more full-time, permanent jobs or $5 million in annual payroll within two years of the placed-in-service date
- $100,000 cap on credits received for rehabilitation of historic homes
- Additional 5% credit for residence located in a HUD target area
- Must apply for the state credit and federal credit separately
Who Can Use the Credit?
The Georgia State Income Tax Credit can be used by any owner or pass-through entity (with the proper documentation showing ownership or membership of such entity). The credits may be transferred in whole or in part to another Georgia taxpayer or multiple different Georgia taxpayers, but each credit may only be transferred once [the transferee(s) may not then transfer the credits].
Credits earned by a taxpayer but not used by taxpayer against its income tax may be transferred or sold to another Georgia taxpayer. Credits cannot have been previously sold or purchased. Seller and buyer of credits must jointly submit written notice of sale to the Georgia Department of Natural Resources no later than 30 days after the date of sale.
Taxpayers claiming credits must report the average full-time employees employed by the certified structure to the Georgia Department of Natural Resources. These reports must be submitted annually for five years following the year the credits are claimed.
State Preferential Property Tax Assessment for Rehabilitated Historic Property
The assessment program freezes the assessed value of the property during the rehabilitation (not to exceed 24 months) and continues the prerehabilitation assessment value for eight years following completion of the project.
Important Links
Georgia SHPOState Historic Tax Credits in the Year 2020, Novogradac Journal (September 2020)
Hawaii
Hawaii Historic Preservation Income Tax Credit
Program Overview
The Hawaii Historic Preservation Income Tax Credit offers a 30% credit for qualified rehabilitation expenditures (QREs) for the rehabilitation of historic properties.
Annual Cap
- $1 million
Program Details
- Available in the year in which the structure is placed in service
- Carry forward: 10 years
- Recapture: from any taxpayer who receives a credit and the projected qualified expenditures do not occur or the rehabilitation of the certified historic structure does not proceed in a timely manner and in accordance with the approved rehabilitation plan
- Sunset date: December 31, 2024
Important Links
State of Hawaii State Historic Preservation DivisionIllinois
Illinois Historic Preservation Tax Credit Program
Program Overview
The Illinois Historic Preservation Tax Credit offers a 25% credit for eligible expenditures on rehabilitation of properties eligible for the federal historic credit located in designated River Edge Redevelopment Zones approved by the state in portions of Aurora, East St. Louis, Elgin, Peoria, and Rockford.
Annual Cap
- None
Program Details
- Carry forward: 10 years
- Nontransferrable
- No recapture period
- Qualified rehabilitation expenditures (QREs) must exceed $5,000 or more and 50% of the purchase price of the property
- Sunset date: December 31, 2026
Bicentennial Mississippi River Region Redevelopment Historic Tax Credit Act
For tax years beginning on or after January 1, 2019, and ending on or before December 31, 2029, a taxpayer who qualifies for a credit under the Bicentennial Mississippi River Region Redevelopment Historic Tax Credit Act is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of this Act as provided in that Act.
To the extent authorized by this Act, for taxable years beginning on or after January 1, 2019 and ending on or before December 31, 2029, there shall be allowed a tax credit against the tax imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act in an amount equal to 25% of qualified expenditures incurred by a qualified taxpayer during the taxable year in the restoration and preservation of a qualified historic structure pursuant to a qualified rehabilitation plan, provided that the total amount of such expenditures (a) must equal $5,000 or more, and (b) must exceed 50% of the purchase price of the property.
Annual State Cap
- $15 million
Transaction Cap
- $3 million
Important Links
Illinois State Historic Preservation Office
Illinois Historic Preservation Division River Edge Historic Tax Credit Program
Indiana
Indiana Residential Historic Rehabilitation Credit
Program Overview
The Indiana Residential Historic Rehabilitation Credit is equal to 20% of the qualified expenditures that the taxpayer makes for the preservation or rehabilitation of the historic property.
The qualified expenditures for preservation or rehabilitation of the historic property must exceed $10,000.
Program Details
- The amount of tax credits allowed under this chapter may not exceed $250,000 in a state fiscal year beginning July 1, 2001, or thereafter
- Credit period: five years
Important Links
Indiana Department of Natural ResourcesIowa
Iowa Historic Preservation and Cultural and Entertainment District Tax Credit Program
Program Overview
The Iowa Historic Preservation and Cultural and Entertainment District Tax Credit Program offers a 25% refundable credit for qualified expenditures. Qualified rehabilitation expenditures do not include expenditures financed by federal, state, or local government loans unless otherwise allowed under Section 47 of the Internal Revenue Code.
Annual Cap
- $45 million
Program Details
- Allocation of credits: 5% of credits for projects with less than $750,000 in qualified rehabilitation expenditures (QREs)
- Apply for the state and federal credit separately
- Applications for projects with QREs of more than $750,000 are only accepted during the registration period
- Applications for projects with QREs of less than $750,000 are accepted year round
- At the election of the taxpayer, the credit may be claimed as a nonrefundable tax credit and carried forward up to five years or until depleted, or in the case of a refundable credit, it can be carried forward as an overpayment
- Tax credits are recaptured if part three of the application is not approved because the rehabilitation work is found to be inconsistent with the historic character of the property or the district in which it is located, and the applicant is unwilling or unable to correct the work accordingly
Important Links
State Historic Preservation Office of Iowa (SHPO)Kansas
Kansas Historic Preservation Income Tax Credit
Program Overview
The Kansas Historic Rehabilitation Tax Credit Program offers a 25% credit for qualifying expenditures incurred during a qualified project on a qualified building.
Program Details
- Credit is increased to 30% for nonprofits
- Apply for state credits and federal credits separately
- Carry forward: 10 years
- Project expenses must exceed $5,000
- Smaller projects may be combined in order to exceed the minimum requirement
Important Links
State of Kansas State Historic Preservation DivisionKentucky
Kentucky Historic Preservation Tax Credit Program
Program Overview
The Kentucky Historic Preservation Tax Credit Program offers a 30% credit for qualified rehabilitation expenses as a state tax credit for owner-occupied residential properties.
Annual Cap
- $5 million
Project Cap
- $400,000
Program Details
- A minimum investment of $20,000 is required, with the total credit not to exceed $60,000
- 20% of qualified rehabilitation expenditures (QREs) available for all other properties, requiring a minimum investment of $20,000 or the adjusted basis, whichever is greater
- Total credit for a project must not exceed $400,000
- Louisville:
- Set-aside before December 31 for a major HTC that meets certain requirements for the Seelbach Hotel
- Refundable, transferrable HTCs can be claimed on the first $30 million of qualified rehabilitation expenditures on the project
- Apply for state credits and federal credits separately
Important Links
Kentucky Heritage Council State Historic Preservation OfficeLouisiana
Louisiana Commercial Tax Credit Program
Program Overview
The Louisiana State Commercial Tax Credit Program is available for income-producing buildings that are at least 50 years old, located within a state-designated cultural district or a downtown development district, and undergoing a rehabilitation with qualified rehabilitation expenditures (QREs) exceeding $10,000. Under this program, 20% of the total QREs are returned to the owner in the form of a dollar-for-dollar credit on state income taxes.
Annual Cap
- $125 million
Project Cap
- $5 million in credits per property owner per district per year.
Program Details
- Carry forward: five years
- Sunset date: January 1, 2026
- For projects pursuing both federal and state credits, the Louisiana State Historic Preservation Office (SHPO) reviews and comments on the applications, but the National Park Service (NPS) has the final decision-making authority regarding certification of the completed rehabilitation
- For state-only projects, the SHPO has the final decision-making authority. Successful certification of the completed project, to obtain the subsequent tax benefits, is dependent upon rehabilitation work that meets the Secretary of the Interior’s Standards for Rehabilitation
Who Can Use the Credit?
The Louisiana program is freely transferable.
Important Links
Louisiana State Commercial Tax Credit
Louisiana Commercial Rehabilitation Tax Credit Legislation
The Historic Tax Credit: Building the Future in Louisiana, PlaceEconomics (2017)
State Historic Tax Credits in the Year 2020, Novogradac Journal (September 2020)
The Economics of State and Federal Historic Tax Credits: A Conversation with Donovan Rypkema of PlaceEconomics, Novogradac Journal (July 2020)
Maine
Maine State Historic Rehabilitation Tax Credit
Program Overview
The Maine program offers a 25% credit if the property qualifies for the 20% federal credit and 25% if taxpayer does not claim the federal credit and incurs between $50,000 and $250,000 in qualified expenses.
Project Cap
- $5 million for each building that is a certified historic structure and placed in service per year.
Program Details
- Credit must be taken in four equal installments, with first year being the year the property is placed into service
- Credit period: three years
- Sunset date: December 31, 2023
Important Links
Maine SHPOMaryland
Maryland Heritage Structure Rehabilitation Tax Credit Program
Program Overview
Competitive Commercial Tax Credit
Owners of income-producing properties have the opportunity to earn a state income tax credit (capped at $3 million) that is equal to 20% of eligible rehabilitation expenses for substantial rehabilitation projects. Substantial rehabilitation projects are defined as projects with eligible expenses that exceed the greater of the adjusted basis value of the structure or $25,000.
Homeowner Tax Credit
Homeowners have the opportunity to earn a state income tax credit equal to 20% of qualified rehabilitation expenditures. The credit is capped at $50,000 in a 24-month period and must have a minimum of $5,000 of eligible expenses to qualify.
Small Commercial Tax Credit
The Maryland Historical Trust will accept applications for small commercial projects on a first-come, first-served rolling basis until the program cap of $4 million has been reached. Eligible projects may earn a state income tax credit equal to 20% of qualified rehabilitation expenditures.
Small commercial rehabilitations are defined as projects that do not exceed $500,000 in total qualified rehabilitation expenses. The credit is capped at $50,000 in a 24-month period and must have a minimum of $5,000 of eligible expenses to qualify. Projects in a qualified Opportunity Zone may be eligible for additional tax credits.
Project Cap
- Commercial: $3 million
- Small commercial and owner-occupied: $50,000
Program Details
- Set-aside of $5 million for small commercial projects with $500,000 or less in qualified rehabilitation expenditures (QREs) and more than 75% residential rental
- No more than 60% of funds available for commercial projects in any year may go to any single jurisdiction
- Additional 5% credit for those that have received an allocated Low Income Housing Tax Credit
- Apply to the federal and state credits separately
- The state homeowner tax credit may be used with local historic tax credits, although Maryland Historical Trust (MHT) review is independent of local review and may not be waived or substituted for local approval
- The state small commercial tax credit may be used with federal and local historic tax credits
Important Links
Department of Planning, Maryland Historical TrustMassachusetts
Massachusetts Historic Rehabilitation Tax Credit Program
Program Overview
The Massachusetts Historic Rehabilitation Tax Credit (MAHRTC) is available on a competitive basis for income-producing buildings that are determined a “qualified historic structure” by the Massachusetts Historical Commission (MHC) and that are substantially rehabilitated and determined a certified rehabilitation by the MHC. Under the Massachusetts tax credit program, up to 20% of the total qualified rehabilitation expenditures (QREs) is returned to the owner in the form of a dollar-per-dollar credit on state income taxes.
Aggregate Cap
- $55 million credits awarded annually
Program Details
- The three-part MAHRTC application, together with the additional supporting information required for the competitive process and photographic documentation, is submitted to the MHC to qualify for consideration in application rounds
- Successful certification of the completed project by the MHC, to secure the subsequent tax benefits, is dependent upon rehabilitation work that meets the Secretary of the Interior’s Standards for Rehabilitation
- There are three rounds annually: January 15, April 30, and August 31
- Sunset date: December 31, 2022
Who Can Use the Credit?
- The credit is issued in the form of a certificate and can be sold for use by any Massachusetts taxpayer. There is an active market for the credits in the Commonwealth
- A unique feature of the credit is that nonprofits can use the program without forming a for-profit subsidiary, which is based on a 2006 letter ruling. This is especially helpful on smaller projects with a nonprofit sponsor where the costs associated with the federal historic credit make using it on small projects prohibitive
- Projects that have accumulated credits but have yet to start construction can be sold to a new developer, and the credits allocated to that project can be transferred to the new owner
Important Links
Michigan
Michigan Historic Preservation Tax Credit Program
Program Overview
The Michigan Historic Preservation Tax Credit Program offers a 25% credit of qualified rehabilitation expenditures for the rehabilitation of historic properties.
Annual Cap
- $5 million statewide cap:
- $2 million for large nonresidential historic resources
- $2 million for small nonresidential historic resources
- $1 million for residential historic resources
Project Cap
- $2 million limit per taxpayer per year
Program Details
- Sunset date: December 31, 2030
Important Links
Minnesota
Minnesota Historic Structure Rehabilitation Tax Credit
Program Overview
Minnesota offers either a refundable credit worth 100% of the federal credit or a grant worth 90% of the federal credit for qualified rehabilitation projects.
Program Details
- Apply for the state and federal credits together
- Sunset date: June 30, 2022
Important Links
Minnesota Department of Administration State Historic Preservation Office
Mississippi
Mississippi Historic Tax Credit Program
Program Overview
The Mississippi Historic Tax Credit Program offers a 25% credit for rehabilitation expenses for properties with expenses of more than $5,000 for an owner-occupied dwelling or if rehabilitation costs exceed 50% of total basis in all other properties.
Annual Cap
- $12 million ($120 million in program history)
Program Details
- Eligibility includes the following: if the property is not listed on National Register of Historic Places within 30 months of claiming the credit, its district isn’t listed on the National Register of Historic Places within 30 months, or the rehabilitation is abandoned
- If tax credit amount exceeds the taxpayer’s tax liability, taxpayer may elect to claim a refund in amount of 75% of the excess credit in lieu of a 10-year carry forward
- Taxpayers who were issued certificate of eligibility before July 1, 2016 but didn’t receive the credit because of previous program reaching limit on aggregate amount shall be given priority for tax credits awarded after July 1, 2016
- Non-profits are ineligible for credit
- Sunset date: December 31, 2030
Important Links
Missouri
Missouri Historic Preservation Tax Credit Program
Program Overview
The Missouri Historic Preservation Tax Credit Program provides a tax credit equal to 25% of approved costs associated with the qualified rehabilitation of a certified historic property. The state credits are administered jointly by the Community Development Division in the Missouri Department of Economic Development (DED) and the Missouri State Historic Preservation Office (MO SHPO). The property must be a certified historic structure—either listed on the National Register of Historic Places (NRHP) or contributing to a National Register listed Historic District. The qualified rehabilitation expenditures (QREs) for the project must exceed 50% of the total basis of the property. The Missouri state historic tax credit has recently updated its application process to ensure that the program aggregate cap is used in the most beneficial way for the state.
Aggregate Cap
For projects receiving more than $275,000 in tax credits: $90 million with an additional $30 million for projects located in qualified census tracts (poverty rate below 20%).
The final application is a certification of completed work, which includes a review of the work completed by the SHPO and a review of the expenses by DED. All work must follow the Secretary of the Interior’s Standards for Rehabilitation.
Who Can Use the Credit?
The Missouri tax credit is sellable or transferable and may be carried back three years or forward for 10 years.
Important Links
Missouri SHPO
Missouri Department of Economic Development
Missouri HTC Fact Sheet
Montana
Montana Historic Rehabilitation Income Tax Credit Program
Program Overview
The Montana Historic Rehabilitation Income Tax Credit Program is equal to 25% of the amount an owner claims under the federal program.
Program Details
- There is no application process for the state tax credit beyond the successful applicant’s own state income tax forms
- Carry forward: seven years
Important Links
Montana Historical Society
Montana State Historic Preservation Office
Nebraska
Nebraska Historic Tax Incentive Program
Program Overview
The Nebraska Historic Tax Incentive Program offers a 20% credit against income, deposit, or premium tax for rehabilitation of historically significant real property except for a single-family residence.
Annual Cap
- $15 million
Project Cap
- $1 million
Program Details
- $4 million set aside for projects seeking less than $100,000 in credits
- Carry forward: five years
- Recapture: same as federal
- Sunset date: December 31, 2022
- The application shall include plans and specifications, an estimate of the cost of the project prepared by a licensed architect, licensed engineer or licensed contractor, and a request for a specific amount of credits based on such estimate. The officer shall review the application and, within 21 days after receiving the application, shall determine whether the information contained therein is complete. The officer shall notify the applicant in writing of the determination within five business days after making the determination
- NHTC Part 2 applications must be approved before work begins
Important Links
New Hampshire
New Hampshire Community Revitalization Tax Incentive
Program Overview
Any city or town may adopt this program with the majority vote of its legislative body. Once RSA 79-E is adopted locally, a property owner who wants to substantially rehabilitate a building located in a downtown or village center may apply to the local governing body. If approved, the property owner receives a period of relief from increased property taxes, usually five years. In exchange, the property owner grants a covenant for a certain period of years ensuring there is continuing public benefit to the rehabilitation. Designated historic buildings outside of downtowns or villages are also eligible for this tax incentive.
Important Links
New Jersey
New Jersey Historic Property Reinvestment Program
Program Overview
The New Jersey Historic Property Reinvestment Program offers a 40% credit for qualified rehabilitation expenditures (QREs) for the rehabilitation of historic properties.
Annual Cap
- $50 million per year for the first six years of the seven years for which the program is approved
Project Cap
- $4 million
Program Details
A property must:
- Be income-producing
- Demonstrate a project financing gap
- Have a developer with an equity participation of at least 20%
- Qualify by being listed on the New Jersey and/or National Register of Historic Places, designated by the Pinelands Commission as a historic resource of significance to the Pinelands, or certified as a significant historic resource by a certified local government
Important Links
New Jersey Economic Development Authority
New Jersey Department of Environmental Protection - Historic Preservation Office
New Mexico
New Mexico Income Tax Credit for Registered Cultural Properties Program
Program Overview
The state tax credit is equal to 50% of qualified expenditures for all properties listed in the State Register Cultural Properties.
Project Cap
- $25,000 outside an arts and cultural district
- $50,000 located within an arts and cultural district
Program Details
- Carry forward: four years (compliance period is five years)
- Apply separately for the state and federal credits
- In case of the removal of the property from the register by the committee because of unauthorized or improper alteration or preservation technique, which destroys the significant qualities of the structure, or by reason of destruction or loss of the property, or for any other reason that makes a property ineligible for continued listing on the register, the division will inform the taxation and revenue department that no further credit may be claimed by that owner for that project
- The State Cultural Properties Review Committee (CPRC) must approve the proposed rehabilitation prior to the beginning of the project
Important Links
New Mexico Department of Cultural Affairs, Historic Preservation Division
New York
New York Rehabilitation Tax Credit for Commercial Properties
Program Overview
The New York State Historic Commercial Properties Tax Credit is a 20% tax credit on qualified rehabilitation expenditures (QREs) available for income-producing buildings that are determined a “qualified historic structure” by the New York State Historic Preservation Office (NY SHPO) and are substantially rehabilitated. The program follows the federal historic tax credit (HTC) and requires no additional application, but to receive the state credit, the project must be in an eligible census tract.
Project Cap
- $5 million
Program Details
- 20% of qualified expenditures for commercial properties located in a census tract with a median income at or below the State Family Median Income level, a Qualified Census Tract, or in a state Area of Chronic Economic Distress
- Small projects, with QREs of $2.5 million or less, can receive a state credit worth 150% of the federal credit. This change applies from January 1, 2022 to January 1, 2025
- Credits can be carried forward indefinitely (five-year compliance period)
- All rehabilitation work must be approved by the NY SHPO and comply with the Secretary of the Interior’s Standards for Rehabilitation
- The credit is taken in the year the NY SHPO approves the completed work
- If the credit is more than the income tax for that year, unused state tax credits will become refundable
- There is no application form
- After Part 3 of the federal application is approved by the National Park Service and the state fees are paid, the New York State Office of Parks, Recreation, and Historic Preservation will issue a certification allowing owners to take the state credit
Who Can Use the Credit?
The tax credits are available to the New York taxpaying owner of any income-producing property in New York.
Other Programs
New York State Historic Barns Tax Credit
The Historic Barns Tax Credit provides an income tax credit of 25% of eligible expenses for the substantial rehabilitation of any historic barn in the state. The credit was implemented to help preserve the historic barns of New York’s landscape. The barn must either be listed on the New York State or National Register of Historic Places (NRHP) or have been built or placed in agricultural service prior to 1936.
Important Links
North Carolina
North Carolina Credit for Rehabilitating Income-Producing Historic Structure
Program Overview
The North Carolina Credit for Rehabilitating Income-Producing Historic Structures offers 15% of qualified rehabilitation costs of up to $10 million for historic income-producing properties, 10% for $10 million to $20 million, and no credit for more than $20 million.
Project Cap
- $4.5 million, based on $20 million project of vacant mill in distressed county
Program Details
- 5% additional credit with $20 million project cap for projects located in either Tier One or Tier Two areas
- Credit can be taken in year placed in service
- Carry forward: nine years (compliance period is five years)
- Recapture: same as federal
- Former state mill rehabilitation tax credit rolled into this credit. Eligibility certifications for projects certified under previous mill program expire January 1, 2023
- Apply for the state and federal credits separately
- Sunset date: January 1, 2024
Important Links
North Dakota
North Dakota Renaissance Zone Rehabilitation Tax Credit
Program Overview
The North Dakota Renaissance Zone Rehabilitation Tax Credit offers 25% of qualified rehabilitation expenditures for a project that is part of a renaissance zone project and is eligible to be on the National Register of Historic Places.
Project Cap
- $250,000
Program Details
- Carry forward: five years
- Apply for the state and federal credits separately
Important Links
Ohio
Ohio Historic Preservation Tax Credit
Program Overview
The Ohio Historic Preservation Tax Credit offers a 25% credit for owners and long-term qualified lessees of certified historic buildings.
Annual Cap
- $60 million
Project Cap
- $5 million
Program Details
- Carry forward: five years (four-year compliance period)
- Applicant must have CPA certify costs if qualified rehabilitation expenditures exceed $200,000. The director of development services can approve one “catalytic project” per fiscal biennium that shall receive a tax credit equal to 25% of the dollar amount indicated on the certificate for a credit of no more than $5 million. A “catalytic project” is defined as a project whose rehabilitation will spur economic growth within 2,500 feet of the historic building
- Apply for the state and federal credits separately
Important Links
Ohio Development Services Agency
Ohio History Connection (Ohio SHPO)
Oklahoma
Oklahoma Investment Tax Credits for Rehabilitation
Program Overview
Oklahoma Investment Tax Credits for Rehabilitation offers a 20% income tax credit for all eligible commercial and rental residential properties that qualify for the federal tax credit.
Program Details
- Carry forward: 10 years
- Apply for the state and federal credits simultaneously
- Credits are freely transferable for five years
Important Links
Pennsylvania
Pennsylvania Historic Preservation Incentive Tax Credit Program
Program Overview
The Pennsylvania Historic Preservation Incentive Tax Credit Program offers a 25% credit for eligible properties that qualify for the federal tax credit.
Annual Cap
- $3 million
Transaction Cap:
- $500,000
Program Details
- Carry forward: seven years
- The tax credit reservation expires 24 months from the date of issuance
- Requests for final certification should be made prior to the expiration date of the tax credit reservation
- Applicant must have an independent certified public accountant certify costs
- Apply for the state and federal credits separately
Important Links
Pennsylvania Department of Community and Economic Development
Rhode Island
Rhode Island Historic Preservation Tax Credit
Program Overview
The Rhode Island Historic Preservation Tax Credit allows for a 20% tax credit for income-producing historic properties and a 25% credit for historic properties that use 25% of the total rentable space or the entire first floor for a trade or business. All credits are based on qualified rehabilitation expenditures (QREs) that follow the Secretary of the Interior’s Standards for Rehabilitation.
Per-Project Cap
- $5 million (including all phases)
Program Details
The credits may be carried forward for the following 10 years after the building was put into use if the credits exceed the owner’s tax liability. All three parts of the application process (which certify that the building is historic and that all work follows the Secretary of the Interior’s Standards) will be reviewed by the Rhode Island Historical Preservation and Heritage Commission. In addition, Part 3 is filed and approved by the Rhode Island Division of Taxation. The program was recently extended again in 2019. The Rhode Island Division of Taxation is still accepting applications for place assignment in the queue for tax credit allocations. However, tax credit funds are limited at this time.
- Sunset date: December 31, 2022
Who Can Use the Credit?
Credits can be used by for-profit and non-profit commercial property owners. Owner-occupied residences are not eligible. Credits may be sold or transferred to another Rhode Island taxpayer.
Important Links
Rhode Island SHPO
RI Credit Legislation
RI Tax Credit Regulations
RI HTC Preservation Credit Contracts
South Carolina
South Carolina Historic Rehabilitation Tax Credit
Program Overview
The South Carolina Historic Rehabilitation Tax Credit (SCHTC) is available for income-producing buildings that are determined a “qualified historic structure” by the State Historic Preservation Office (SHPO). The rehabilitation project must also be determined a substantial rehabilitation and a certified historic rehabilitation under the same guidelines as the federal credit. Under the SCHTC program, 10% of the total qualified rehabilitation expenditures (QREs) are returned to the owner in the form of a dollar-per-dollar credit on state income taxes. In 2015, the option to take a 25% credit of the total QRE was passed to allow smaller projects to receive more state tax credits.
Project Cap
- 10% credit: none
- 25% credit: $1 million in credits per project
Program Details
The SCHTC does not require additional forms outside of the federal HPCA. Part 3 certification for completed rehabilitations, which secures the subsequent SCHTC tax benefits, is dependent upon approval of the Federal Certification of Completed Work.
Who Can Use the Credit?
The SCHTC is not freely transferable, but it can be disproportionally allocated to the partners by agreement. For example, one partner can receive an allocation of all the credit if stated in the partnership agreement; otherwise, the credit will be allocated pro rata. It cannot be sold, but it can be allocated to a new equity partner through an equity investment structure.
South Carolina Abandoned Building Tax Credit
South Carolina tax credits are available for the rehabilitation, renovation, and redevelopment of buildings that have been abandoned for at least five years. This tax credit measure provides a 25% state tax credit up to $500,000 that may be used against state income tax, corporate license fees, tax of insurance premiums, or real property taxes. Applicants are required to file a Notice of Intent to Rehabilitate with the appropriate authority and declare whether they will apply the credit to real property tax prior to the start of the project. These incentives can be taken in addition to the state historic tax credit.
South Carolina Textile Communities Revitalization Tax Credit
South Carolina tax credits are available for the rehabilitation, renovation, and redevelopment of textile properties that have been abandoned for at least one year. This tax credit measure provides a 25% state tax credit that may be used against state income tax, corporate license fees, tax of insurance premiums, or real property taxes. Applicants are required to file a Notice of Intent to Rehabilitate with the appropriate authority and declare whether they will apply the credit to real property tax prior to the start of the project.
Important Links
Texas
Texas Historic Preservation Tax Credit Program
Program Overview
The program offers 25% of the total qualified rehabilitation expenditures (QREs) in the form of a dollar-for-dollar credit on Texas franchise tax or insurance premium tax. There is no required basis test, no recapture, and only a minimum expenditure of $5,000 to participate. In addition, nonprofits may make use of the program unlike the federal credit. The credit mirrors the federal Historic Tax Credit program, with a three-part application filed and approved by the State Historic Preservation Office (SHPO): Part A certifies the building’s ability to be listed on the National or State Register of Historic Places, Part B details how the planned work meets the Secretary of the Interior’s Standards for Rehabilitation, and Part C is the final certification after construction completion.
Program Details
The program can be combined with the federal credit or undertaken as a state-only application. State-only applicants can more readily phase projects to monetize a longer-term rehabilitation sooner, although there are review fees at Parts B and C for each phase. A combined federal and state application requires National Park Service (NPS) approval for each phase in the form of a “phased advisory letter.” The credits can be carried forward for five years.
Tax Credits for State Institutions of Higher Education
A 2017 addition to the program allows for state institutions of higher learning to participate. Like nonprofits, these entities can sell earned credits to private companies that can use them against their state franchise or insurance premium tax.
Who Can Use the Credit?
The credit is freely transferable to any entity that pays Texas franchise tax or insurance premium tax.
Important Links
Utah
Utah Historic Preservation Tax Credit Program
Program Overview
The Utah Historic Preservation Tax Credit Program offers 20% of qualified expenditures for buildings occupied by owners or used as residential rentals.
Program Details
- Carry forward: five years
- Recapture: same as federal but for three years
- Total expenditures must exceed $10,000
- Building must be listed on National Register of Historic Places at time of application or within three years of approval
Important Links
Vermont
Vermont Downtown and Village Tax Credit
Program Overview
The Vermont Downtown and Village Tax Credit offers the following:
- Code: 50% of qualified expenditures for income-producing property built before 1983 located within a downtown or village center district
- Historic: 10% of qualified expenditures for an approved federal 20% application and a building located within a downtown or village center district
- Facade: 25% of qualified expenditures for income-producing property built before 1983 and located within a downtown or village center district
Annual Cap
- $2.4 million
Program Details
- Per-Project Cap:
- Code: $50,000 for the sprinkler; $50,000 for the elevator; $12,000 for a lift; and $2,500 for other code requirements. If eligible, the credit may be combined with the 10% historic credit or 25% facade credit, but not both
- Historic: 10% on the first $500,000 and half the costs exceeding $500,000. Credit may be used in combination with the 50% code credit only
- Facade: $25,000 credit may be used in combination with the 50% code credit only
- Carry forward: nine years
- Recapture: same as federal
- Combination of credits is possible, up to 70%
- Selection criteria are applied to ensure credits are allocated to projects that provide the most public benefit
- Projects must be finished within five years of date of allocation
- If no claim for the tax credit has been filed within five years after the date of the credit allocation to the applicant, the tax credit allocation shall be rescinded
- Credit can only be “sold” to Vermont-based banks or insurance companies
Important Links
Virginia
Virginia Rehabilitation Tax Credit Program
Program Overview
The Virginia Rehabilitation Tax Credit for income-producing properties is designed to work with or independent of the federal historic tax credit and provides a 25% credit for qualified rehabilitation expenditures (QREs).
To qualify, a building must be a certified historic structure: either listed on the National Register of Historic Places (NRHP) or the Virginia Landmarks Register individually as a contributing structure in a historic district or eligible for listing.
Reconstruction and improvements must amount to at least 25% of the assessed value for owner-occupied buildings and at least 50% for nonowner-occupied buildings.
Program Details
- Per-Project Cap: $5 million per taxpayer per year
- Carry forward: 10 years
- The credit may be claimed in the year the rehabilitation is complete
- The recapture is the same as the federal historic tax credit, except state doesn’t require ownership to remain the same for five years
- If rehabilitation expenses exceed $500,000, an audit report by a certified public accountant must be submitted; if rehabilitation expenses are less than $500,000, an agreed-upon procedures engagement report by a certified public accountant is required
- Sunset date: June 30, 2025
- Apply for the federal and state credits separately
Who Can Use the Credit?
The credit can be used by commercial and owner-occupied residential properties. The state credit for Virginia may not be sold or transferred, but the credits may be syndicated through limited partnerships.
Important Links
West Virginia
West Virginia Historic Rehabilitation Tax Credit Program
Program Overview
The West Virginia Historic Rehabilitation Tax Credit Program offers a 25% credit for buildings eligible for federal credit after December 31, 2017.
Annual Cap
- $30 million
Per-Project Cap
- $10 million
Program Details
- $5 million set aside for projects with less than $500,000 in qualified rehabilitation expenditures (QREs)
- Part 3 required within 36 months and for phased projects, Part 2 required within 60 months
- Rescinded credits can be reallocated by the State Historic Preservation Office (SHPO)
- Long-term lessee can receive the credit
- Minimum investment: $5,000 or the adjusted gross basis
- Recipient of credit must not be delinquent in payment of taxes
- Commercial buildings entitled to carry forward 10 years
- Carry backward: same as federal credit but after January 1, 2020 carry forward only
- Recapture rules same as federal credit
- Tax credits will be awarded on a first come, first-served basis
Important Links
Wisconsin
Wisconsin Supplemental Historic Preservation Tax Credit
Program Overview
In addition to the federal program, the Wisconsin Supplemental Historic Preservation Tax Credit returns an additional 20% of the cost of rehabilitation to owners as a credit on their Wisconsin state income taxes.
Project Cap
- $3.5 million per parcel
Program Details
Owners that qualify for the federal tax credit program automatically qualify for the Wisconsin supplement if they get National Park Service (NPS) approval before beginning work. Eligible rehabilitation expenses follow those set by the NPS, and all work must follow the Secretary of the Interior’s Standards for Rehabilitation. Owners seeking the state supplemental credit are required to complete and submit a Wisconsin Economic Development Corporation (WEDC) Supplemental Information form concurrently with the federal Historic Preservation Certification Application (HPCA) Part 2.
Who Can Use the Credit?
The Wisconsin historic tax credit is transferable to anyone who pays Wisconsin state income tax with the proper transfer documentation.