Historic buildings are tangible links to the past. They give communities a sense of stability, individuality, and orientation. Our government encourages the preservation of historic buildings through various means, including the Federal 20% Historic Rehabilitation Tax Credit Program.
The historic tax credit program is one of the nation's most successful and cost-effective community revitalization programs. It fosters private sector rehabilitation of historic buildings and promotes investment in local economies. It also provides a strong alternative to government ownership and management of historic properties. It generates jobs, both during the construction phase and in the spin-off effects of increased earning and consumption.
Rehabilitation of historic buildings attracts new private investment to the historic cores of cities and towns and is crucial to the long-term economic health of many communities. Enhanced property values generated by the program result in higher revenues for local and state government through increased property, business, and income taxes.
The National Park Service has recently released updated Federal Historic Rehabilitation Tax Credit Application forms. All applications received in the State Historic Preservation Offices (SHPOs) on or after Monday, March 1, 2021 must use the revised forms with "Rev. 2019" shown in the header. Previous versions of applications will not be accepted. Any outdated forms received by the SHPO on and after March 1, 2021 will be returned to the applicant.
The project look-up feature on the NPS Technical Preservation Services website is the best way for applicants to check the application status, once it has been forwarded from the Louisiana Division of Historic Preservation / State Historic Preservation Office.
The IRS has provided information for use by applicants for the Historic Preservation Tax Incentives. Its purpose is to present an overview of the issues set forth, and it should not be relied upon as definitive tax advice. Applicants are strongly encouraged to consult their tax adviser or the Internal Revenue Service about the tax implications of the Historic Preservation Tax Incentives.
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 the 20% Historic Tax Credit. 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 Secretary of the Interior's Standards for Rehabilitation provides a list of ten guidelines that must be met when rehabilitating a historic property for its new, modern use. These Standards must be considered when planning a project that may be eligible for historic rehabilitation tax credits.
The Louisiana Division of Historic Preservation has created an indexed guide to the Standards, along with helpful information for first-time applicants on Standards interpretation.
Contact Information
Phone (225) 342-8160
Fax (225) 219-9772
Mailing Address: Tax Incentives Staff, Division of Historic Preservation, P.O. Box 44247, Baton Rouge, LA 70804
Overnight Mail: Tax Incentives Staff, Division of Historic Preservation, 4th Floor, 1051 N. Third Street, Baton Rouge, LA 70802