Tax Credit Programs
Disclaimer
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.
Tax Credit Programs
New York State offers tax incentives for the rehabilitation of historic commercial and residential properties, and historic barns.
- Do you have a commercial or income-producing property? Learn about federal and state historic preservation tax credit programs here.
- Do you have a historic home? Learn about the New York State Historic Homeownership Rehabilitation Credit below (keep reading).
- Do you have a historic barn? Learn about the New York State Historic Barn Rehabilitation Tax Credit below (keep reading).
This chart gives a brief overview of the federal and state historic preservation tax credit programs:
You can also contact the State Historic Preservation Office (SHPO) for information.
Historic Preservation Tax Credit Programs for Income-Producing Properties
*** Commercial Tax Credit News *** Electronic Submissions Coming! As of August 15, 2023, all applications for the commercial tax credit program must be submitted electronically, both to the State Historic Preservation Offices and to the National Park Service. New forms and instructions will be available from the National Park Service on July 10, 2023. Both the NY SHPO and the NPS will be providing further instructions and guidance on exactly how this will work during July. Read more about electronic submission on the National Park Service's website 
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Federal
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.
New York State
Owners of income-producing properties that have been approved to receive the 20% federal rehabilitation tax credit can additionally claim a state tax credit if the property is located in a qualifying census tract.
Owners can receive an additional state credit of 20% or 30% of the qualified rehabilitation expenditure (QRE) up to $5,000,000. In order to qualify for the 20% credit, the placed-in-service date must be after January 1, 2010. For the 30% credit, the placed-in-service date must be after January 1, 2022, and the total QREs cannot exceed $2.5 million.
There is no application form for the state credit; applicants just need to comply with the agency media agreement and submit the applicable review fees (refer to Fee Schedule and Media Agreements). 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 (OPRHP) will issue a certification allowing owners to claim the state credit.
Important Changes to the New York State Rehabilitation Tax Credit for Commercial Properties
New York State has extended the availability of this program until December 31, 2029.
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 change in the law includes updating the eligible census tracts using the most recent data available.
Buildings placed in service after January 1, 2022, and with final Qualified Rehabilitation Expenditures (QREs) of no more than $2.5 million, are eligible for a 30% state tax credit.
Resources and Additional Information
New York State Historic Homeownership Rehabilitation Credit
Rehabilitation of historic residential buildings may qualify for a New York State tax incentive. The Historic Homeownership Rehabilitation Credit program offers a state income tax credit equal to 20% of qualified rehabilitation expenses associated with repair, maintenance, and upgrades to historic homes. The value of the credit is applied to your NYS tax liability to reduce the amount you owe. The program covers 20% of qualified rehabilitation expenses up to a credit value of $50,000 per year. For more information please review the program's qualifications and FAQs below, or call Division staff at 518-237-8643 and request to speak to the staff member who handles your county.
Qualifications:
- The applicant must own and live in the house.
- The house must be listed in the New York State and National Registers of Historic Places individually or as a contributing building in a listed Historic District. Note: In some cases, a local historic district has been certified to participate in tax credit programing.
- The house must be located in a qualifying census tract.
- The rehabilitation expenses must be $5,000 or more with a minimum of 5% of that being spent on exterior work.
- All projects must be approved before work begins.
Instructions & Application Forms
| Submit your Historic Homeownership Rehabilitation Credit Application Online | |
|---|---|
| You can now submit all parts of your Historic Homeownership Rehabilitation Credit Application and pay the review fees online via DocuSign. We strongly recommend that you review the general Application Instructions and the below Submission Guidance before beginning any part of your application. The online application allows you to attach your supporting documentation and photos, enter payment information, and provide a secure signature. Your application will be submitted to the Division for Historic Preservation for processing and review, and you will be notified by email when is it complete. | |
| Submit Part 1 & 2 Application | |
| Submit Amendment Application | |
| Submit Part 3 Application | |
- Application Instructions & List of Eligible Expenses (pdf)
- Application: Part 1 & 2 Historic Homeownership Rehabilitation Credit (pdf)
- Application: Project Amendment Form (pdf)
- Application: Part 3 (Completion of Project) (pdf)
- Application: Part 3 Project Worksheet for Homes with Income-producing Components (apartments, home office, etc.) (pdf)
- Historic Homeownership Tax Credit Program Handout (pdf)
- Programa de Crédito Para La Restauración de Viviendas Históricas (pdf)
New York State Historic Barn Rehabilitation Tax Credit
Owners of historic barns may qualify for a New York State tax incentive for qualified rehabilitation work. The Historic Barn Rehabilitation Tax Credit program offers a state income tax credit equal to 25% of the expenditures incurred to rehabilitate a historic barn. The barn must have been built prior to 1946 (National Register listing is not a requirement) and the work must be approved by the Division for Historic Preservation. There is no cap on the amount of credit that may be earned, and taxpayers can begin to claim the credit on their 2022 NYS taxes.
For more information about the qualification criteria and the application process, please review the documents below, or call 518-237-8643 and request to speak to the Division staff member who handles barn credits.