Taking Advantage Of The Historic Preservation Tax Credit

A historic tax credit is available for homeowners. These credits provide incentives for homeowners to invest in the rehabilitation and preservation of historic landmarks and other sites of historic significance. The credit is not a refund, but a way for homeowners to invest in these properties and receive a reduction in the taxes they pay.

Administration of the Tax Program

The National Parks Service of the U.S. Department of the Interior and the Internal Revenue Service (IRS) jointly administer the Federal Historic Preservation Tax Incentives. The types of properties and sites that may qualify for the credit include rural barns, main street commercial buildings, row houses and wood frame houses.

Taking Advantage of the Credit

Individuals looking to take advantage of the historic preservation tax credit must completely rehabilitate the property deemed a historic preservation site by the National Park Services. Written plans must be submitted and the improvements must take place within either a 24 or 60 month period. The taxpayer claims the credit on their tax form and is permitted to carry back 1 year or carry forward up to 20 years any credit amount that they are not able to use in the tax year of the claim.