What are Historic Tax Credits
The Basics
Once a property is deemed ‘historic’ by being listed either on the National Register of Historic Places individually or contributing to a historic district or is part of a Certified Local Historic District, a project can receive tax credits, which lowers the taxes owed, on qualified rehabilitation expenses if their work conforms to the Secretary of the Interior’s Standards for Historic Building Rehabilitation.
These Honor Award winning projects utillized either the Missouri Historic Tax Credit, the Federal Historic Tax Credit, or both.
State VS Federal Tax Credit
“The state credits apply to income-producing property including either commercial or residential rental property, or personal residences that are certified historic structures and meet the minimum investment threshold. Missouri law provides an investment tax credit equal to 25% of approved costs associated with qualified rehabilitation made after Jan. 1, 1998.
The federal credits are limited to income-producing, depreciable property only. The property may be either commercial or residential rental property that is certified historic. A taxpayer’s personal residence would not qualify for the federal credit. (The 20% credit is available for properties rehabilitated for commercial, industrial, agricultural, or rental residential purposes, but it is not available for properties used exclusively as the owner’s private residence).
The federal and state credits can be used in combination for the rehabilitation of commercial or income-producing properties.”
(This information was provided by the National Trust for Historic Preservation, National Park Service, and Missouri Department of Natural Resources)
Where is there potential?
Thanks to the efforts of the Missouri State Historic Preservation Office, you can now view a map of Missouri with all National Register Individual Listings and Districts and Certified Local Districts or view listed places by county.
The Missouri Department of Economic Development is responsible for administering the HPTC program alongside the State Historic Preservation Office. Their website will reflect the most recent information regarding the HPTC, including the new rules, applications and other resources.