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.
Total amount spent on certified federal tax credit projects in Texas 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 recently received an Attorney General opinion regarding certain aspects of the new law and its implementation. In cooperation with the Texas Comptroller of Public Accounts, the Texas Historical Commission is now drafting rules for administration of this program, including the process for owners to apply for the credit. Updates will be posted during the rulemaking process.
New Fees and Forms for 20% Rehabilitation Tax Credit
Effective December 31, 2012, the National Park Service has revised the fee schedule for processing the Historic Preservation Certification Application for the 20% rehabilitation tax credit program. New projects will be subject to the new fee schedule, while projects where a Part 2 application was previously submitted will remain under the old fee schedule. Please visit the National Park Service website for detailed information on the fees.
New fillable PDF forms for the Historic Preservation Certification Application are also now available on the National Park Service website. If applying for the 20% rehabilitation tax credit, please use these forms in lieu of any older forms. Remember to submit two copies of your application to the THC. One copy will be reviewed and retained by our office, and the second copy will be forwarded to the National Park Service for review.