Historic Tax Credits

The Federal and State Historic Tax Incentive programs encourage investment in the rehabilitation and re-use of historic buildings. Tax credits on qualified expenditures can sometimes make the difference in deciding to undertake renovation of an investment property.

A Tax Credit is a direct, dollar for dollar reduction in the amount of money a taxpayer must pay in taxes for a give year. The tax credit is calculated on the cost of renovating and restoring the historic property. (in additional to other items the cost of renovating does not include cost of acquiring the property, new additions, landscaping). Credits are not automatically available; an application must be submitted prior to the completion of the project.

There are 3 Historic Rehabilitation Tax Programs:

THE FEDERAL 20% HISTORIC REHABILITATION TAX CREDIT

STATE OF LOUISIANA 25% COMMERCIAL REHABILITATION TAX CREDIT

The Louisiana legislature approved the extension to the state’s historic tax credits to January, 1 2022. After January 1 , 2018 the state tax credit will be reduced to 20% of qualified expenditures.

STATE OF LOUISIANA 18.5% HOMEOWNER REHABILITATION TAX CREDIT