Tax Credits

There are currently two programs offered to assist the building rehabilitation projects of both private residential homeowners and owners of income-producing properties. These programs offer tax credits ranging from 10% to 25% of the cost of rehabilitation. Tax credits differ from tax deductions in that the tax credits are a dollar-for-dollar reduction in what you owe in taxes. For example, if you were to spend $40,000 on approved work, you could receive up to a $10,000 credit against what you owe in taxes.

The table below breaks down exactly how these credits work.

Non-Residential* Residential
Not Certified 10% Federal
Must be built before 1936
25% State**
Certified Historic Building 20% Federal + 5% State 25% State

* Non-residential refers to buildings not held exclusively for a private residence by the owner. A good rule of thumb is if you can depreciate your building then it qualifies as non-residential.

** Residential homes that are not listed in the state or national register can still qualify for the 25% State tax credit. The state only needs to determine that your house is eligible for listing in the state register.

Questions on tax credits? Visit our FAQ.

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