Historic Preservation Tax Credits

The Federal Historic Preservation Tax Credit is the most popular historic preservation incentive program.  At this time, only income-producing (commercial, industrial, rental) properties qualify for this tax credit.  Applicants who conduct a substantial rehabilitation of a property listed on the National Register of Historic Places that is certified by the State Historic Preservation Office as meeting the Standards for Rehabilitation are eligible to take a income tax credit of 20% of the qualified rehabilitation costs.  A standard application must be filled out for the tax credit, including a description of work to be undertaken and photographs showing existing conditions, which must be approved by the State Historic Preservation Office.  For non-residential buildings built prior to 1936 that are certified as not eligible for the National Register, a 10% tax credit may be taken for a qualified rehabilitation.  More information on the tax credit can be found at www2.cr.nps.gov/tps/tax.

Many states also have state income tax credit for the rehabilitation of historic properties that is based on the federal program.  Currently, Iowa has a program while Illinois does not.  Iowa's rehabilitation tax credit programs permits 25% of qualified rehabilitation costs to be taken as a state income tax credit for historic properties listed on the National Register of Historic Places or is a barn built prior to 1937.  Residential, rental, commercial, and barn projects qualify for this tax credit, and guidelines for each property type must be met.  Additional information on the Iowa tax credit can be found at:

www.iowahistory.org/preservation/financial_assistance/financial_assistance.html

SPARK Consulting provides expertise in successfully completing the application for the Historic Preservation Tax Credit, including Parts I, II, and III.  For additional information, contact SPARK Consulting.