Tax Credit Program
“Thanks to the partnering of our NYS Historic Tax Credit and Federal Historic Tax Credit, New York State has led the country in Historic Tax Credit investment for several years in a row. From 2014-2018, over 65,000 jobs were created thanks to the Historic Tax Credit. We have seen first-hand the positive impact of these credits throughout New York State, from rural villages to large urban centers.”
The Preservation League of New York State
New York State Historic Homeownership Rehabilitation Credit
Rehabilitation of historic residential buildings may qualify for a New York State tax incentive. The Historic Homeownership Rehabilitation Credit program offers a state income tax credit equal to 20% of qualified rehabilitation expenses associated with repair, maintenance, and upgrades to historic homes. The value of the credit is applied to your NYS tax liability to reduce the amount you owe. The program covers 20% of qualified rehabilitation expenses up to a credit value of $50,000 per year. For more information please review the program’s qualifications and FAQs below, or call Division staff at 518-237-8643 and request to speak to the staff member who handles your county.
- The applicant must own and live in the house.
- The house must be listed in the New York State and National Registers of Historic Places individually or as a contributing building in a listed Historic District. Note: In some cases, a local historic district has been certified to participate in tax credit programing.
- The house must be located in a qualifying census tract.
- The rehabilitation expenses must be $5,000 or more with a minimum of 5% of that being spent on exterior work.
- All projects must be approved before work begins.
Federal Investment Tax Credit Program for Income Producing Properties
Owners of income producing real properties listed on the National Register of Historic Places may be eligible for a 20% federal income tax credit for the substantial rehabilitation of historic properties. The final dollar amount is based on the cost of the rehabilitation; in effect, 20% of the rehab costs will be borne by the federal government. The work performed (both interior and exterior) must meet the Secretary of the Interior’s Standards for Rehabilitation and be approved by the National Park Service. For more information, please contact the OPRHP or go to the Territorial Map section to find information for the Investment Tax Credit Program representative for your county.
New York State Tax Credit Program for Income Producing Properties
This tax credit must be used with the Federal Investment Tax Credit Program for Income Producing Properties. Owners of income producing properties that have been approved to receive the 20% federal rehabilitation tax credit automatically qualify for the additional state tax credit if the property is located in an eligible census tract and the Part 2 and Part 3 state fees have been paid. Owners can receive an additional 20% of the qualified rehabilitation expenditures up to $5,000,000*. In order to qualify, the placed-in-service date must be after January 1, 2010. There is no application form. After Part 3 of the federal application is approved by the National Park Service and, the state fees are paid, The New York State Office of Parks, Recreation, and Historic Preservation will issue a certification allowing owners to take the state credit.
AARCH recently hosted a workshop on Tax Credits, you can view the video Malone Webinar-compressed