You may be eligible for a 20% tax credit up to a $50,000 value for rehabilitation work on your historic home. A new state law to enhance the 2007 Historic Preservation Tax Credit Program increases financial incentives for rehabilitation of “qualified historic homes.” Information about the requirements needed for a home to qualify is included below.
Tax credits are available for rehab in excess of $5000 of which at least 5% is spent on exterior work; the work is completed after January 1, 2010; and preliminary approval is received by the New York State Historic Preservation Office (SHPO). Work that generally does not qualify for the tax credit includes landscaping, fencing, and additions.
A buyer of a qualified historic home may also be able to claim the tax credit if he or she was the first purchaser after a substantial rehabilitation by the seller, which was certified as meeting the established requirements. Furthermore, the sale must occur within five years of the certification of the completed work and the seller could not have previously taken the tax credit.
If the allowable credit exceeds the homeowner’s tax liability for the year and the family’s adjusted gross income is under $60,000, the excess will be treated as an overpayment of tax to be credited or refunded.
According to the SHPO, a “Qualified Historic Home” must be:
- Listed on the State or National Register or as a contributing building in a historic district; and
- Located in a federal census tract that is at 100% or less of the State
- Family Median Income or has similar designations. Call SHPO to determine whether your neighborhood qualifies.