OLG and DCRT
Strategic Plan
2014-15 through 2018-19

         

Did you know?

Historic Rehabilitation Tax Credits

Tax credits encourage the preservation and continued use of historic buildings by offering economic incentives for their rehabilitation. The Louisiana Division of Historic Preservation administers three historic rehabilitation tax credit programs: the Federal 20% Historic Rehabilitation Tax Credit Program and the 25% State Commercial Tax Credit Program, both for income-producing buildings; and, the 25% State Residential Tax Credit Program, for owner-occupied historic structures. 

These programs have helped preserve many historic buildings throughout Louisiana. They not only offer an incentive to preserve historic buildings, but also act as a major force in economic development. The use of tax credits encourages private sector rehabilitation of historic buildings and is one of the most successful and cost effective community revitalization programs. All three programs generate jobs and create commercial, residential, and industrial spaces within historic buildings.

A tax credit is a direct, dollar for dollar, reduction in the amount of money a taxpayer must pay in taxes for a given year. For example, if a taxpayer owes $5,000 in taxes to the Internal Revenue Service or Department of Revenue, but has a $3,000 credit, he only pays $2,000. Thus he pockets the $3,000 he would otherwise have to pay in taxes. A credit is much better than a deduction which merely reduces a taxpayer’s income and puts him in a lower tax bracket.

Time and time again, we hear that these programs make the numbers work for development projects. Louisiana is consistently one of the top ten performing states in the nation, both for the number of historic rehabilitation projects completed and dollars leveraged. To date, historic rehabilitation tax credits have leverage over $3.7 billion in investment in historic properties in Louisiana alone.

All three of the optional, yet restrictive programs listed below are administered by the Louisiana Division of Historic Preservation. Each program may be used independently, but there are certain instances where the all three programs, or some other combination thereof, may be used together.  

Federal Historic Rehabilitation Tax Credit Program

A 20% federal income tax credit is available for the rehabilitation of historic, income-producing buildings that are determined by the National Park Service to be "certified historic structures." The Division of Historic Preservation and the National Park Service review projects to ensure their compliance with the Secretary of the Interior's Standards for Rehabilitation. The Internal Revenue Service defines qualified rehabilitation expenditures on which the credit may be taken.

State Commercial Tax Credit Program

A 25% state income tax credit is available for the rehabilitation of historic, income-producing buildings that are determined by the Division of Historic Preservation to be "certified historic structures." The Division of Historic Preservation reviews projects to ensure their compliance with the Secretary of the Interior's Standards for Rehabilitation. The Louisiana Department of Revenue defines qualified rehabilitation expenditures on which the credit may be taken.

State Residential Tax Credit Program

A 25% state income tax credit is available for the rehabilitation of owner-occupied historic homes, as determined by the Division of Historic Preservation. Each project is reviewed to ensure compliance with the Secretary of the Interior's Standards for Rehabilitation. The Louisiana Department of Revenue defines qualified rehabilitation expenditures on which the credit may be taken. Buildings which have been determined to be vacant and blighted are eligible for a 50% credit.


 

Contact Information
Phone (225) 342-8160
Phone (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