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

For more information, please visit The State Residential Tax Credit Program homepage.

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.