Historic Tax Credits

What Tax Credits Are Available?

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 the Ohio Historic Preservation Office or (614) 298-2000.

Since 1994, efforts have been made toward establishing a rehabilitation tax credit for homeowners; however, it has not yet met with success.

Some states offer state historic credits, but unfortunately Ohio is not one of them. The Cleveland Restoration Society and Heritage Ohio, the statewide historic preservation group, continue to lobby for a statewide preservation tax credit.

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 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 or call the Ohio Historic Preservation Office at (614) 298-2000.

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