Alabama

The state tax credit application is a three-step process:

1. The AHC provides technical assistance on application procedures, appropriate rehabilitation work, and will visit properties as needed.
2. The AHC will recommend qualifying projects to the Historic Tax Credit Evaluating Committee who will rank projects in the order they are to receive tax credit reservations.
3. Applicants must report progress of the project at 18 months and 36 months of receiving the reservation, and the project must be complete within 60 months.

At the end of a project, owners submit a final application providing information on the completed project. If work complies with the Standards and all other requirements are met, the AHC issues a Tax Credit Certificate.

$20 million in tax credits are available each tax year from 2017 to 2027.

No more than $200 million in total credits before Dec. 31, 2022.

For the first six months of each calendar year, 40% of the $20 million will be set aside for projects located in counties with less than 175,000 population. After six months, any of those funds remaining will be available for any project.

$50,000 for residential homes.

25 percent refundable tax credit available for private homeowners and owners of commercial properties who substantially rehabilitate historic properties that are listed in or eligible for the National Register of Historic Places and are 60 years old or older.

60 years or are historic building in national monument or national park.

40 percent of credits reserved for counties with 175,000 or fewer people. 

 Alabama Historical Commission Administrative Code; Rule 810-3-137-.01; Rule 810-3-137-.03; Rule 810-3-137-.02

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.

Eligible costs must exceed 50 percent of the owner’s original purchase price or $25,000, whichever is greater.

Those receiving a reservation have up to 5 years to complete the project and take the tax credit.

Any nonprofit receive 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 percent or greater of the present value.

State Contact

Hannah Garmon
Alabama Historical Commission
334-230-2644
[email protected]

Arizona (Proposed)

State Contact

Arizona (Proposed #2)

State Contact

Arkansas

Income-producing properties that start before July 1, 2017, can claim a 25 percent credit on up to $500,000 in qualified rehabilitation expenses.

Income-producing properties that start July 1, 2017 or later can claim a 25 percent credit on up to $1.6 million in qualified rehabilitation expenses.

Non-income producing properties can claim a 25 percent credit on up to $100,000 in tax credits.

Credit only allowed one time for each eligible property in a 24-month period.

Arkansas State Rehabilitation Tax Credit FAQ; Arkansas Historic Rehabilitation Tax Credit Brochure; Arkansas State Tax Credit Program Rules Draft with 2015 legislative changes 

Applications are prioritized by the following selection criteria:

1. Result in the creation of a new business;
2. Result in the expansion of an existing business;
3. Establish or contribute to the establishment of a tourism attraction as defined by the Department of Parks and Tourism;
4. Contribute to the revitalization of a specific business district
5. Be a key property in the revitalization of a specific neighborhood.

State Contact

Arkansas Historic Preservation Program
[email protected]
(501) 324-9880

California

Colorado

Colorado 8 CCR 1504-10: Income Tax Credit for Qualified Costs Incurred in Preservation of Qualified Residential Structures (March 17, 2019)

In connection with the reservation of tax credits for qualified commercial structures, changes the existing requirements under which the Colorado office of economic opportunity (office) uses a lottery process to determine the order in which it will review applications and plans received on the same day to a process under which the office must date and timestamp each application and review a plan and application on the basis of the order in which such documents were submitted.

$1 million

25% credit against individual and corporate taxes for owners and long-term qualified lessees for first $2 million in Qualified Rehabilitation Expenses (QREs) and 20% on the remaining QREs for commercial properties.  

Credit goes to 30% in a designated disaster area and starting in 2020 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.

20 percent credit for qualifying residential properties and 30% starting in 2020 for communities under 50,000 in population. No aggregate statewide dollar cap, but per project cap of $50,000 per year.

Office of Archaeology and Historic Preservation
(303) 866-3392
[email protected]

Connecticut

$4 million

The credit is equal to 25 percent of total qualified rehabilitation expenditures, which include residential use of five units or more, mixed residential and nonresidential use or nonresidential use consistent with the historic character of such property or the district in which such property is located. The credit goes up to 30 percent if the project includes an affordable housing component provided at least 20 percent of the rental units or 10 percent of for sale units qualify under CGS Section 839a.

Use Form CT1120-HP

Tax credits can be assigned, transferred or conveyed in whole or in part by the owner to others up to three times.

Julie Carmelich
(860)-256-2762
[email protected]

Delaware

20 percent of qualified expenditures for income producing buildings, residential buildings and an additional 10 percent for low-income housing developments. $30,000 cap for single rehabilitation of owner-occupied property.

30 percent for all other historic buildings

20 percent credit for properties eligible for federal HTC; a 30 percent credit for homeowners and nonprofits; 100 percent credit for resident curatorship properties.

Form 700 Delaware Income Tax Credit Schedule; Form 1811AC 0905 Computation Schedule for Claiming Delaware Historic Preservation Tax Credits

Historic Preservation Tax Credit Program Guidance; Historic Preservation Tax Credit Program Statistics

The structure must be substantially rehabilitated, meaning that the qualified expenditures must exceed the greater of $5,000 or the adjusted basis of the building (adjusted basis: cost of the property minus cost of the land, plus any capital improvements already made, minus any depreciation already taken). Generally, this expenditure test must be met within a 24-month period. An applicant can only claim the amount of tax credits that is supported based on actually incurred rehabilitation costs, even if assigned a higher credit award initially.

 The credit may be transferred in whole or in part at any time during the 10-year period. Property owners without tax liability, such as nonprofits or local governments, can take part in the program.

Joan Larrivee
Historic Tax Credit Program Coordinator
Division of Historical and Cultural Affairs
Phone: (302)736-7406

Florida (Proposed)

S.B. 288

Georgia

H.B. 1441

Homeowner projects and commercial projects under $300,000 in credits are exempt from annual aggregate cap of $25 million.

Additional 5% credit for residence located in a HUD target area.

2022: $5 million combined for all projects earning $300,000 or less; $25 million for all projects earning more than $300,000.

2023 and 2024: $5 million for historic homes earning $300,000 or more.

2023 through 2027: $30 million in aggregate, excluding historic homes.

Photo-Documentation for Rehabilitation of Historic Properties, DNR Standards for Rehabilitation, Georgia Register of Historic Places, State Preferential Property Tax Assessment Program for Rehabilitated Historic Property, Substantial Rehabilitation Worksheet; Proposed Rule 560-7-8-.56 Historic Rehabilitation Tax Credit

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.

Rachel Rice, Tax Incentives Program Manager
[email protected]

Hawaii

Illinois

To obtain the credit, an application must be made to the Department of Commerce and Economic Opportunity.

 Applicants must submit one completed ITR-1 Form to the Illinois Department of Revenue

25 percent of qualified expenditures 

In order to qualify for the program, the following five qualifications must be met:

• The structure must be located within the River Edge Redevelopment Zone
• The structure must be certified as historic by meeting one of the following three criteria:

1. Listed individually on the National Register of Historic Places
2. Be a contributing building within a National Register historic district
3. Be a contributing building within a local historic district that has been certified by the National Park Services for purpose of taking federal tax credits

• Qualified rehabilitation expenditures must exceed $5,000 or more and 50 percent of the purchase price of the property.
• The structure must be income producing.
• The qualified taxpayer/historic structure owner must be in good standing with the Illinois Department of Revenue.

The tax credit cannot be sold or transferred.

Department of Commerce and Economic Opportunity
(217) 557-0513
[email protected]  

Illinois

Not Available

 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 8 amount equal to 25 percent 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 (i) must equal $5,000 or more, and (ii) must exceed 50 percent of the purchase price of the property. 

Credits may be allocated among partners of a syndication partnership.

Department of Commerce and Economic Opportunity
(217) 557-0513
[email protected]  

Indiana

H.B. 1454

$10 million

25% of QREs for most properties. 30% credit for properties that that are owned by nonprofits or are not income producing.

For fiscal years beginning after June 30, 2023.

Indiana

H 1578

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.

The tax credit is equal to 20 percent 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.

Income Tax Information Bulletin #87

Indiana Department of Natural Resources
317.234.7034

Indiana (Proposed)

S.B. 478

Iowa

Apply through the Iowa Tax Credit Award, Claim and Transfer Administration System

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.

State HTC instructions

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, carried forward as an overpayment.  (Not applicable.)

State Historic Preservation Office of Iowa (SHPO)

Kristen Vander Molen, Grants Manager
[email protected]

Kansas

Kansas State Historic Preservation  Office
(785) 272-8681, ext. 240

Kentucky

30 percent of qualified rehabilitation expenses is offered as a state tax credit for owner-occupied residential properties. A minimum investment of $20,000 is required, with the total credit not to exceed $60,000

20 percent of qualified rehabilitation expenses is available for all other properties, requiring a minimum investment of $20,000 or the adjusted basis, whichever is greater. The total credit for a project must not exceed $400,000

Louisville: Set-aside before Dec. 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.

Requires a minimum investment of $20,000 or the adjusted basis, whichever is greater. 

All credits are subject to proportional reduction if the value of credits claimed exceeds the annual aggregate cap.

Mike Radeke
Restoration Project Manager
(502) 564-7005, Ext. 141

Louisiana

Louisiana Office of Lieutenant Governor Department of Culture, Recreation and Tourism, Division of Historic Preservation

Nicole Hobson-Morris
(225) 342-8172

Maine

Maine State Historic Rehabilitation Tax Credit

Maine Historic Preservation Commission

36 MRSA §5219-BB

Not Applicable

25 percent credit if the property qualifies for the 20 percent federal credit and 25 percent if taxpayer does not claim the federal credit and incurs between $50,000 and $250,000 in qualified expenses.

Credit must be taken in 4 equal installments with first year being year property is placed into service.

Maine Historic Preservation Commission
207.287.2132

Maryland

 2018 Changes

Commercial: $5 million for projects that don’t qualify as a level 1 or level 2 opportunity zone project; $5,250,000 for a project that qualifies as a level 1 opportunity zone project; $5,500,000 for a project that qualifies as a level 2 opportunity zone project.

Small commercial: QREs may not exceed $5000.

20% credit

Kate Jaffe
Administrator of the Tax Credit Program
(410) 697-9537

Massachusetts

Same as federal

Taxpayers may carry over credits for any of the succeeding five taxable years.

New Requirement for State HTC Applications; Historic Rehabilitation Tax Credit Phased In Projects; Continuation Amendment Sheet; Massachusetts Historic Rehabilitation Tax Credit Final Regulations; MHC HRC Questionnaire Attachment; MHC HRC Questionnaire Instructions; TIR 15-6 Historic Rehabilitation Tax Credit-Transferring Awards; Multi-Phased Projects and Recapture; Advanced Training Presentation (April 8, 2016)

At least 25 percent of the tax credits shall be allowed to developments that contain affordable housing whenever possible and consistent with the criteria.

10 percent of the tax credits awarded annually shall be dedicated to forward-year funding.

Any taxpayer, allowed to take the historic rehabilitation credit may transfer the credit, in whole or in part, to any individual or entity, without the requirement of transferring any ownership interest in the project or any interest in the entity which owns the project.

The Massachusetts state HTC is still considered by the legislature and governor to be a pilot program, which will expire in 2022.

Massachusetts Historical Commission
(617) 727-8470

Michigan

Application Instructions; only digital submissions to the application portal are accepted

$2 million limit per taxpayer per year.

25% of qualified rehabilitation expenditures.

Frequently Asked Questions (May 2022); Frequently Asked Questions (Feb. 2021); Draft Rules Historic Preservation Certification

State Contact

Minnesota (Proposed)

Not applicable

Mississippi

Taxpayer shall attach certificate from Mississippi Department of Archives and History to all income tax returns on which it is claimed.

Not Available

Not Available

• If tax credit amount exceeds the taxpayer’s tax liability, taxpayer may elect to claim a refund in amount of 75 percent of the excess credit in lieu of a 10-year carryforward.
• Taxpayers who were issued certificate of eligibility before July 1, 2016, but didn’t receive the credit due to previous program reaching limit on aggregate amount shall be given priority for tax credits awarded after July 1, 2016.
• Nonprofits are ineligible for credit.

Not Available

Missouri

Missouri provides a credit equal to 25 percent of approved costs associated with qualified rehabilitation.  The credit is available for income producing, for sale and owner occupied residential properties that are either individually listed on the National Register of Historic Places or are a contributing structure located in a certified historic district.

Projects with eligible costs less than $1.1 million are not subject to cap.

Additional $30 million in credits for areas with poverty rates of 20 percent or more.

The Capitol Complex Tax Credit: Covers rehabilitation and renovation of five specific buildings in Jefferson City, Missouri. Taxpayers who make a monetary donation to the Capitol Complex Fund are allowed a tax credit of 50% of the amount and taxpayers who make an artifact donation are allowed a credit of 30% of the value of the artifact. The credit is effective for tax years beginning on or after Jan. 1, 2021.

State Historic Preservation Office
(800) 361-4827
(573) 751-7858

Montana

Montana State Historic Preservation Office
(406) 444-7715

New Hampshire

New Hampshire Preservation Alliance

RSA 79-E

Not Applicable

Not Applicable

See local governing body

See local governing body

Not Applicable

Not Applicable

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 5 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.

See local governing body

NA

Usually 5 years

Not Applicable

Not Applicable

Not Applicable

New Jersey

New Mexico

$25,000 outside an Arts and Cultural District

$50,000 located within an Arts and Cultural District

Individuals use Form PIT-4, and corporations use Form CIT-4

The State Cultural Properties Review Committee (CPRC) must approve the proposed rehabilitation prior to the beginning of the project.

 Carry forward: 4 years

Harvey Kaplan
Tax Credits & Architectural Review
(505) 827-3971