Federal, state, and local tax incentives exist for owners of historic properties. The Federal Historic Preservation Tax Incentives program includes a 20% income tax credit for the rehabilitation of historic, income-producing buildings and a 10% income tax credit for rehabilitation of non-historic buildings. A state sales tax exemption on labor is available for work to buildings listed in the National Register of Historic Places. County and local taxing authorities may grant property tax exemptions for buildings with state or local historical designations.
Number of Part 2 applications for federal rehabilitation tax credits in Texas submitted in Fiscal Year 2012
Texas Historic Preservation Tax Credit Program
During the 83rd Legislative Session, the Texas Legislature established a state tax credit for the rehabilitation of historic buildings. The credit is worth 25% of the eligible rehabilitation costs for the project, which must be at least $5,000 in value to qualify. The Texas Historic Preservation Tax Credit Program goes into effect on January 1, 2015 for properties placed in service on or after September 1, 2013.
The Texas Historical Commission has adopted new adminstrative rules for implementation of the Texas Historic Preservation Tax Credit Program as Sections 13.1 - 13.8 of Chapter 13 (Title 13, Part II of the Texas Administrative Code). The Commission also proposed an amendment to these rules to clarify the types of entities that may apply for the credit. The adopted rules and proposed amendment are found below. The amendment will also be posted in the Texas Register for public comment for a thirty-day period.
Applying for the Federal Rehabilitation Tax Credit
On Tuesday, August 19 from 1:00-2:30 PM (Central), the National Park Service will host a 90-minute webinar on applying for the federal rehabilitation tax credit, an important incentive for the preservation and rehabilitation of commercial and rental residential historic buildings. It is one of the federal government’s most successful and cost-effective community revitalization programs. The webinar will cover the basics of the federal credit including what buildings and expenditures qualify for the credit, what constitutes a certified rehabilitation, and how to go through the application process. The content is introductory-level and would be helpful for first-time or infrequent users of the program.
For more information and to register for this space-limited event, please visit the link below.