Residential Historic Rehabilitation Credit
The Residential Historic Rehabilitation Credit is available to Indiana State Income taxpayers who undertake certified rehabilitations of historic buildings that are principally used and occupied by a taxpayer as that taxpayer's residence. The State incentive allows a taxpayer to claim a State Income Tax credit for 20% of the total qualified rehabilitation or preservation cost of a project. The Division of Historic Preservation and Archaeology, Indiana Department of Natural Resources administers the program. The following conditions must be met to qualify for the Residential Historic Rehabilitation Credit:
- The property must be located in the State of Indiana
- The building must be at least fifty (50) years old.
- The property must be listed on the Indiana Register of Historic Sites and Structures.
- The property must be owned by the taxpayer(s), used and occupied by the taxpayer(s) as his/her/their principal residence.
- The rehabilitation or preservation work for which the credit is claimed must conform to a Rehabilitation Plan or a Preservation Plan submitted to and approved by the Division of Historic Preservation and Archaeology.
- The qualified expenditures for preservation or rehabilitation of the historic property must exceed ten thousand dollars ($10,000).
- Qualified expenditures include the cost of work for preservation or rehabilitation that enables the structure to be principally used and occupied by the taxpayer as the taxpayer's residence. Qualified expenditures do not include cost of acquiring the property or realtor's fees associated with the property. taxes due on the property, costs of additions or enlargement of the existing structure, paving and landscaping, and sales and marketing costs.
- The rehabilitation or preservation work must be completed during a measuring period not to exceed two (2) years for a single phase project, or not to exceed five (5) years if the approved plan authorized that the rehabilitation be completed in phases. The measuring period begins when physical work of construction or destruction begins in preparation for construction.
Additional provisions of the program:
The total amount of Residential Historic Rehabilitation Credit allowed for each state fiscal year cannot exceed two hundred fifty thousand dollars ($250,000). Each certified application will be assigned a place in a queue and qualify for a tax credit for the current state fiscal year, provided that all projects previously certified have received credit and provided that the two hundred fifty thousand dollars ($250,000) cap on credits for the current fiscal year has not been exceeded. Subsequently certified applications (above and beyond the annual cap) will be placed in a queue for the next fiscal year for which the cap has not yet been exceeded.
Any unused portion of a certified credit that results from limited annual tax liability may be carried forward and applied to succeeding taxable years for up to fifteen (15) years following the initial credit year.
The tax credit may be recaptured from the taxpayer(s) if the property in transferred within five (5) years after completion of the certified rehabilitation or preservation work, or if additional modifications to the property that do not meet the standards of the Division of Historic Preservation and Archaeology are undertaken less than five (5) years after the completion of the certified rehabilitation.
There is no fee for obtaining tax credit certification from the Division of Historic Preservation and Archaeology.
For applications and/or additional Information, please contact:
Indiana Department of Natural Resources Division of Historic Preservation and Archaeology 402 West Washington Street, Room W274 Indianapolis, Indiana 46204 2739(317) 232 1646
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