Historic Rehabilitation Tax Credits

Renovating a historic structure can be an expensive and difficult process. Thankfully, several incentives exist to offset the costs and encourage historic restoration, such as the following.

Federal Historic Tax Credit Program:

Federal Income tax credit for 20% of the cost of restoring and improving a historic structure. Applicants may claim the income tax credit for the year a project is completed and after the final approval. In order to receive and keep the full credit, the owner must hold the building for five years after the renovation.

General Eligibility Criteria (for more information please contact us): The building/s must be in a registered historic district and considered a certified historic structure or registered individually in the National Register. Renovation costs must exceed the adjusted basis of the building or exceed $5,000 if significantly depreciated. Work must be completed according to the Secretary of Interior’s Standards for Rehabilitation.

Louisiana State Historic Tax Credit Program

State income tax credit for 20% of the cost of restoring and improving a historic structure. Applicants may claim the credit for the year a project is completed and after the final Part 3 is approved. Income tax credits may be claimed by the owner or may be transferred or sold to another entity.

General Eligibility Criteria (for more information please contact us): Building/s must be at least 50 years old and located within the boundaries of a Downtown Development District, a certified Cultural District, or a registered historic district and considered a certified historic structure. In certain cases, buildings may be less than 50 years old but must be registered with the National Register of Historic Places and meet other criteria. Renovation costs must exceed $10,000 in qualified expenses and completed according to the Secretary of Interior’s Standards for Rehabilitation.

Most importantly, a building’s historic features must be preserved. Alterations must be compatible with its historic character.

If you’re renovating a property within a cultural, historic, or development district, please contact Webre Consulting before beginning construction to discuss your property’s eligibility.


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