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Tax Credits

There are numerous tax incentives for fixing up old structures. Here are introductions to two such programs. To qualify for these programs, projects must follow the U.S. Secretary of the Interior standards which are outlined in the Preservation Briefs and must be certified by the state of Indiana in a formal review process. This review process is separate from those conducted by local historic district review commissions.

Credits for income-producing properties

Income tax credits are the principal governmental subsidy available for privately owned and funded historic preservation activities. Both the federal and state governments offer a Rehabilitation Investment Tax Credit equaling 20 percent of rehabilitation costs for qualified work at income-producing properties that are certified historic buildings. A net subsidy equaling 40 percent of qualified rehabilitation costs may be yielded by participation in both programs. Eligible properties include commercial buildings, factories, or even old houses but they must be income producing, such as rental properties.

Credits for owner-occupied private residences

The Residential Historic Rehabilitation Credit is available to Indiana state income taxpayers who undertake certified rehabilitations of historic buildings that are principally used and occupied by a taxpayer as that taxpayer’s residence. The State incentive allows a taxpayer to claim a state income tax credit for 20 percent of the total qualified rehabilitation or preservation cost of a project. The Indiana property must be at least fifty (50) years old, must be listed on the Indiana Register of Historic Sites and Structures and must be owned and occupied as the principal residence by the taxpayer.

Source

For more information visit the Indiana Division of Historic Preservation and Archaeology tax credits website


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