New Application forms for the State Program! These must be used for Part 2 submitted on or after January 1, 2025!
As you may be aware, updates to our State Historic Tax Credit program legislation were passed in the recent Legislative Session and signed by the Governor. These updates specifically affect the program award cap, which has been lowered to 85 Million per year. This change will require an update to our promulgated rules which can be found here in their current form (page 1103-1104).
New Federal Historic Rehabilitation Tax Credit application forms issued.
New State Tax Credit applications are available, and the online submission process has been launched!
Mailed applications will no longer be accepted. All Federal and State Applications must be submitted digitally, and the updated application forms must be used.
The governor has signed ACT No. 426 which will amend the Louisiana State Historic Rehabilitation Tax Incentive program. Amendments to the law took effect August 1, 2023.
To see updates to both programs, please visit our website: https://www.crt.state.la.us/cultural-development/historic-preservation/tax-incentives/index
The State Commercial Tax Credit Progran sunset date has been extended through December 31, 2025.
For State Commercial Part 2 applications received by the Department of Culture, Recreation and Tourism on or after January 1, 2021, the maximum aggregate total of tax credits may be reserved by all taxpayers shall not exceed $125 million annually.
The Department of Culture, Recreation and Toursim will be working with the Louisiana Department of Revenue to develop regulations pursuant to this change.
TAX CUTS AND JOBS ACT: Changes to the Federal 20% Historic Rehabilitation Tax Credit Program and the Federal 10% Rehabilitation Credit for Non-historic Buildings
On December 22, 2017, Public Law No: 115-97 (Pub. L. 115-97) was signed and enacted, amending the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. Pub. L. 115-97 (Sec. 13402) modifies the 20% Historic Rehabilitation Tax Credit as well as provides certain transition rules. These and other changes to the Internal Revenue Code may affect a taxpayer's ability to use of the 20% Historic Tax Credit. Pub. L. 115-97 also repeals the 10% Rehabilitation Tax Credit for non-historic buildings. The text of Pub. L. 115-97 is available at www.congress.gov.
Applicants requesting historic preservation certifications by the National Park Service as well as others interested in the use of these tax credits are strongly advised to consult an accountant, tax attorney, or other professional tax adviser, legal counsel, or the Internal Revenue Service regarding the changes to the Internal Revenue Code related to Pub. L. 115-97.
The State Residential Tax Credit Program expired December 31, 2017
The State Commercial Tax Credit Program reduces from 25% to 20% effective January 1, 2018
The amount of the credit shall equal 25% of the eligible costs and expenses of the rehabilitation incurred prior to January 1, 2018, regardless of the year in which the property is placed in service. The amount of the credit shall equal 20% of the eligible costs and expenses of the rehabilitation incurred on or after January 1, 2018, and before January 1, 2022, regardless of the year in which the property is placed in service. No credit is authorized pursuant to this Section for expenses incurred on or after January 1, 2022.
For more information, please visit The State Commercial Tax Credit Program homepage.
