State Commercial Tax Credit | Division of Historic Preservation

*Historic Tax Credit Reservation Process Public Hearing and Comment Period*

A public hearing to receive comments on the Notice of Intent will be held on June 24, 2021, beginning at 9 a.m. All interested persons will be afforded an opportunity to submit data, views, or arguments, orally or in writing, at said hearing. The hearing will be held at the Division of Historic Preservation, 1051 N. Third Street, Baton Rouge, LA  70802.

This hearing will also be accessible via Zoom, from 9:00 a.m. to 12:00 p.m. 

Meeting ID: 860 6885 6348
Passcode: 130879

All interested persons may submit written comments through June 30, 2021, to Alison Saunders, Tax Incentives Director, Division of Historic Preservation, Office of Cultural Development, Department of Culture, Recreation & Tourism, P.O. Box 44247, Baton Rouge, LA  70804 or via email at asaunders@crt.la.gov 

*Important Changes to the State Commercial Tax Credit Program*

Any State Commercial Tax Credit Part 2 applications received by the Division of Historic Preservation must be postmarked no later than December 31, 2020 to remain exempt from the $125 million annual credit cap. The Department will accept hand-delivered applications through 5:00 PM CST on Wednesday, December 30, 2020. All State offices will be closed on December 31, 2020.

Any applications hand-delivered after 5:00 PM CST on Wednesday, December 30, 2020 or postmarked January 1, 2021 or later, will be subject to the forthcoming credit reservation cap. State Commercial Part 2 applications should not be considered a reservation, and acceptance or approval of a State Commercial Part 2 application does not ensure a reservation will be available.

For any additional questions, please do not hesitate to contact the Tax Incentives Staff of the Louisiana Division of Historic Preservation at (225) 342-8200.


The 20% State Commercial Tax Credit was created in 2002 by the Louisiana Legislature to encourage the redevelopment of income-producing historic buildings in Louisiana's Downtown Development Districts. In 2007, the enabling program legislation was amended to allow historic buildings located in certified Cultural Districts to be program-eligible.

The 20% State Commercial Tax Credit Program is jointly administered by the Louisiana Division of Historic Preservation and the Louisiana Department of Revenue. The Louisiana Division of Historic Preservation acts as an applicant's first point of contact and reviews applications for compliance with the Secretary of the Interior's Standards for Rehabilitation; the Louisiana Department of Revenue reviews project costs. The credit is available for those income-producing buildings that are contributing elements to Downtown Development Districts or certified Cultural Districts. Rehabilitation projects must exceed $10,000 in qualified rehabilitation expenses and must be completed according to the Secretary of the Interior's Standards for Rehabilitation. Once earned, credits are fully transferable and may be carried forward for up to five years.

The State Commercial Tax Credit program 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 reserved shall not exceed $125 million annually. The Department will be working with the Louisiana Department of Revenue to develop regulations pursuant to this change. Any State Commercial Part 2 applications received prior to January 1, 2021 shall not be subject to the reservation system.

The credit was equal to 25% of eligible costs and expenses incurred through December 31, 2017; the credit is 20% for eligible costs and expenses incurred January 1, 2018 or later, regardless of the year in which the property is placed in service.


 

State Commercial Historic Tax Credit Program

Guidelines

This booklet contains program guidelines, application instructions, frequently asked questions, and timelines for the application process. Applications are located in the sections below. 
Some program information has changed, and the Guidelines booklet is being updated to reflect the following:
  • The State Commercial Historic Tax Credit Program sunsets December 31, 2025.
  • 25% tax credit for qualified rehabilitation expenditures incurred December 31, 2017 or prior
  • 20% tax credit for qualified rehabilitation expenditures incurred January 1, 2018 or after
  • Projects that have Part 2 applications submitted on or after January 1, 2021 will be subject to a credit reservation system currently under development. A Part 2 approval does not constitute a credit reservation.

State Commercial Tax Credit Application

These downloadable, fillable PDF forms work best with Adobe Acrobat Reader 10 and above. DO NOT open the forms in a browser tab or window. DOWNLOAD the forms and SAVE them to your computer. To download and save, right-click on the link and chose "Save Link As..." Open the forms in the Adobe Acrobat Reader.

Part 1 - Certification of
Contributing Status
 Part 2 - Proposed Work
Description
 Part 3 - Request for
Project Certification
STC-Application-Part-1-Cover-10-24-14 STC-Application-Part-2-Cover-10-24-14 STC-Application-Part-3-Cover-10-14-14
 
Fee Payment
Information
 Continuation Sheet 

 Amendment Sheet

 Fee-Worksheet-Cover-10-24-14 STC-Application-Amendment-Cover-10-24-14  Amendment_Sheet_Image

 


 

The Secretary of the Interior's Standards for Rehabilitation

SOI Standards Interior

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.

 

 

 

 

 


 

Cultural-District-Logo-10-24-14

Buildings that are at least 50 years old and located within the boundaries of certified Cultural Districts may be eligible for the 20% State Commercial Tax Credit Program.

 

 

  

 


 

Louisiana Downtown Development Districts

Buildings that are at least 50 years old and located within the boundaries of Louisiana's Downtown Development Districts may be eligible for the 20% State Commercial Tax Credit Program. 

 


 

 

LDR-Logo-Cover-10-24-14

 

The Louisiana Department of Revenue provides information on the financial implications of using the 20% State Commercial Tax Credit Program. LDR has issued a wealth of guidance on buildings that are considered qualified for the program and also on how to properly prepare audit information. 

Private Letter Rulings

A private letter ruling is a written statement issued by the Louisiana Department of Revenue to a taxpayer applying principles of law to the taxpayer's specific set of facts. This type of policy statement is issued only if there is no other guidance that addresses the correct application of the legal principles to the taxpayer's particular situation. LDR has issued a number of private letter rulings on previous historic tax credit issues.

PLR 08-023 Credit for the Rehabilitation of Historic Structures in Downtown Development Districts

PLR 08-017 Historic Rehabilitation Credit

PLR 07-017 Credit for the Rehabilitation of Historic Structures in Downtown Development Districts

PLR 06-001 Historic Rehabilitation Tax Credit Earned by a Downtown Development District

Revenue Information Bulletins

Revenue information bulletins are issued by the Department of Revenue to clarify internal procedures and to clarify laws. LDR has issued two Revenue Information Bulletins on the financial record keeping that must be submitted to their office in order for an applicant to access the 20% State Commercial Tax Credit.

RIB 14-007-A Louisiana Rehabilitation of Historic Structures Tax Credit for Projects Less Than $500,000 of Eligible Costs and Expenses

RIB 14-007 Louisiana Rehabilitation of Historic Structures Tax Credit

RIB 14-005 Louisiana Tax Credit Registry

RIB 13-022 Historic Rehabilitation Tax Credit Changes

RIB 13-021 Louisiana Tax Credit Registry Transfer Notices and Fees

 


 

Stacking the Federal and State Commercial Tax Credit Programs

Stacking CreditsSome projects may be eligible for both the Federal and State Commercial Rehabilitation Tax Credit programs. The most stringent program requirements must be met to qualify for both tax credits.

This booklet (left) offers guidance on using both the Federal and State Commercial Tax Credit programs. 

 

 

 

 

 


 

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

©2021 Louisiana Department of Culture, Recreation and Tourism