Historic Tax Credits
The Federal government offers two Rehabilitation Investment Tax Credits: a 20% credit for the certified rehabilitation of certified historic structures and a 10% credit for the rehabilitation of non-historic (meaning not listed in the National Register of Historic Places or a contributing structure in a National Register district), non-residential buildings built before 1936. The National Park Service administers these programs in partnership with the Internal Revenue Service and the State Historic Preservation Offices. To qualify for the 20% credit, the project must be substantial and the building income producing, a “certified historic structure” and held for at least five years. For more information, contact us at 412-471-5808.
Since 1994, efforts have been made toward establishing a rehabilitation tax credit for homeowners; however, it has not yet met with success.
In 2000, Congress also passed the Community Renewal Tax Relief Act, creating a New Market Tax Credit Program to encourage private investments in low-income communities. The program is based on a competitive application process by which community reinvestment entities certified by the CDFI Fund compete for $2.5 billion in federal tax credit applications
How Do I Apply for a Historic Tax Credit?
Before you can claim a tax credit, your building must be designated a “certified historic structure,” which means that it must either be listed individually in the National Register of Historic Places or be a contributing building in a registered historic district. To find out if your building is listed on the National Register, go to www.cr.nps.gov/nr/.
The application for a Reinvestment Investment Tax Credit, instructions, Secretary of the Interior’s Standards for Rehabilitation and other materials are available on-line at www.2.cr.nps.gov/tps/tax/index.html .