Owners of historic income-producing real property, owner occupied homes, and barns may qualify for an income tax credit for rehabilitating the property.
This website does not provide legal, tax or accounting advice; the information provided is intended to be general in nature; and visitors to the website are strongly encouraged to consult their own professional tax, accounting and legal advisors on individual tax matters, or consult the NYS Department of Taxation and Finance or the Internal Revenue Service (IRS). The Office of Parks, Recreation and Historic Preservation is not responsible for the information or advice provided here as it may affect the specific tax consequences to any individual (including sole proprietor), corporate, partnership, estate or trust taxpayer, which will depend on many other facts and circumstances. The information is for the general benefit of persons interested in obtaining certifications from OPRHP that may allow them to qualify for federal or state historic properties tax credits. Given the frequency of changes in federal and state tax laws, regulations and guidance, of necessity, the information cannot be expected to be completely current and it represents a good faith effort to reference controlling laws and regulations as accurately as possible.
Owners of income producing real properties listed on the National Register of Historic Places may be eligible for a 20% federal income tax credit for the substantial rehabilitation of historic properties. The final dollar amount is based on the cost of the rehabilitation; in effect, 20% of the rehab costs will be borne by the federal government. The work performed (both interior and exterior) must meet the Secretary of the Interior's Standards for Rehabilitation and be approved by the National Park Service. For more information, please contact our office or go to our Territorial Map section to find information for the Investment Tax Credit Program representative for your county.
Governor Cuomo signed rehabilitation tax credit changes into law on March 28, 2013 that extend the program until December 31, 2019. The legislation also makes the commercial tax credit refundable for rehabilitation projects placed in service on or after 2015. Unused credits from projects placed in service before 2015 can be carried forward indefinitely.
The changes in the law include updating the eligible census tracts using the most recent data available.
This tax credit must be used with the Federal Investment Tax Credit Program for Income Producing Properties. Owners of income producing properties that have been approved to receive the 20% federal rehabilitation tax credit automatically qualify for the additional state tax credit if the property is located in an eligible census tract and the Part 2 and Part 3 state fees have been paid. Owners can receive an additional 20% of the qualified rehabilitation expenditures up to $5,000,000 *. In order to qualify, the placed-in-service date must be after January 1, 2010. There is no application form. After Part 3 of the federal application is approved by the National Park Service and, the state fees are paid, The New York State Office of Parks, Recreation, and Historic Preservation will issue a certification allowing owners to take the state credit.
The following fee schedule applies for property owners seeking state commercial rehabilitation tax credits;
Commercial projects utilizing the federal historic preservation investment tax credit and the New York State commercial historic preservation tax credit will submit the following initial processing fee:
|Over $100,000||10% of estimated final fee|
|(from Final Fee Schedule)|
*The initial fee will be submitted along with the Part II application.
Checks must be made out to: NYSOPRHP and have the address of the property and "commercial tax credit" in the memo section. If the owner knows the assigned project number, that should be in the memo section as well.
Important: Owners should subtract the Part 2 fee from the final fee. For example, $450 would be submitted along with Part 3 for a project that had $20,000 of rehabilitation expenses. Rehabilitation expenses do not include the cost of landscaping or an addition.
|Rehabilitation expenses of:||Fee|
|$20,000 - $99,999||$500.00|
|$100,000 - $499,999||$1,000.00|
|$500,000 - $999,999||$1,500.00|
|$1,000,000 – $2,499,000||$2,500.00|
|$2,500,000 - $4,999,999||$3,000.00|
|$5,000,000 - $9,999,999||$4,000.00|
|$10,000,000 and over||$5,000.00|
*Certification letters for the NYS Commercial Credit will be issued after receipt of the National Park Service Part 3
application and the applicant has submitted the balance of the NYS Processing fee.
Checks must be made out to: NYSOPRHP and have "commercial credit" in the memo. If the owner knows the assigned project number, that should be in the memo section as well.
Rehabilitation work on historic residential structures may qualify for a tax incentive. The credit will cover 20% of qualified rehabilitation costs of structures, up to a credit value of $50,000.00. Houses must be an owner-occupied residential structure and be individually listed on the State or National Register of Historic Places, or a contributing building in a historic district that is listed in the state or National Register of Historic Places. In addition, the house needs to be located in an eligible census tract. At least $5,000.00 must be expended on qualifying work and at least 5% of the total project must be spent on the exterior of the building. All work must be approved by OPRHP prior to start of construction. A Part 2 and Part 3 fee applies for processing applications for the state tax credits. See the application, below, for the fee schedule.
For more information on the NYS Rehabilitation Tax Credit programs, including whether or not your property qualifies for either of the NYS programs, contact the New York State Office of Parks, Recreation and Historic Preservation at 518-237-8643, and ask for the state tax credit staff member.
The Farmer's Protection and Farm Preservation Act, enacted in 1996, was designed in part to preserve the historic barns that dot New York's landscape. In order to qualify for an income tax credit equal to 25% of the cost of rehabilitating historic barns the following rules apply: it must be a barn; it must meet the tax definition of income-producing; it must have been built or placed in agricultural service before 1936; the rehabilitation cannot "materially alter the historic appearance" of the barn; and only costs incurred after January 1, 2003 are eligible.