Owners of historic income-producing real property may qualify for an income tax credit for rehabilitating the property.
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 our office or go to our Territorial Map
section to find information for the Technical Program Representative for your county.
Governor Paterson signs expansion of the NYS Rehabilitation Tax Credit
On July 29, 2009 Governor Paterson signed legislation that will enhance the 2007 Historic Preservation Tax Credit program.
Changes to the existing Rehabilitation Tax Credit will take affect on January 1, 2010 and will continue until December 31, 2014.
Please check back to our site as new information about this important legislation become available.
Governor Paterson Signs Legislation to Enhance Historic Preservation Tax Credit
Documents
New York State Historic 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 qualify for the additional
state tax credit. Owners can receive 30% of the federal credit value up to $100,000. In order to qualify, the placed-in-service date
must be after January 1, 2007. There is no application form. After Part 1 and Part 2 of the federal application are approved by the
National Park Service, The New York State Office of Parks, Recreation, and Historic Preservation will issue a certification form
allowing owners to take the state credit.
NYS Department of Taxation and Finance Form IT-23
New York State Historic Homeownership Rehabilitation Tax Credit
Rehabilitation work on historic residential structures may qualify for a tax incentive. The credit will cover 20% of qualified
rehabilitation costs of structures, up to a credit value of $25,000
Houses must be an owner-occupied residential structure and be individually listed on the State or National Register of Historic
Places, or a contributing building in a historic district that is listed on the state or National Register of Historic Places. In addition,
the house needs to be located in a "distressed" census tract, defined as "targeted areas" under Section 143 (J) of the Internal
Revenue Code. The project must spend at least 5% of the total on the exterior work and be approved by OPRHP prior to start of
construction.
The New York State Office of Parks, Recreation, and Historic Preservation will work with the municipalities to help them pass a
resolution allowing homeowners to take advantage of the program, and to ensure that they have a historic preservation and
community renewal program in place, which is a program requirement.
NYS Department of Taxation and Finance Form IT-23
For more information on the NYS Investment Tax Credit programs, including whether or not your house qualifies for the NYS
Historic Homeownership Tax Credit, contact Sloane Bullough at the New York State Office of Parks, Recreation and Historic
Preservation at 518-237-8643, ext. 3252.
New York State Historic Barns Tax Credit
The Farmer's Protection and Farm Preservation Act, enacted in 1996, was designed in part to preserve the historic barns that
dot New York's landscape. In order to qualify for an income tax credit equal to 25% of the cost of rehabilitating historic barns the
following rules apply: it must be a barn; it must meet the tax definition of income-producing; it must have been built or placed in
agricultural service before 1936; the rehabilitation cannot "materially alter the historic appearance" of the barn; and
only costs incurred after January 1, 2003 are eligible.
NYS Department of Taxation and Finance Form IT-212-ATT