The program provides a 20% tax credit for rehabilitation expenditures to a certified historic structure.

The building must be depreciable property–rental or commercial,

Restoration must be substantial–exceeding the adjusted basis of the property (purchase price less value of the land) or a minimum expenditure of $5,000 (if the property has been depreciated),

Rehabilitation expenditures that qualify include items directly related to the repair of the structure (architectural fees, engineering fees, paint, wiring, plumbing, roof repair, etc),

Tax credit can be carried back three years and forward 15 years,

If a building is not located within an historic district and was constructed prior to 1936, it may qualify for a 10% tax credit if restoration is substantial–exceeding the adjusted basis of the property (purchase price less the value of the land).

For additional information on rules and regulations contact Nicole Hobson at (225) 342-8160.

Downtown 5 Year Property Tax

Abatement On Improvements To Structures

When renovation has not yet begun, five-year property tax abatement on improvements to structures is available, with a five-year option for renewal.

Existing structures in downtown, historic, or economic development districts are eligible.

For additional information on rules and regulations contact John Jernigan, 342-5402.

Downtown State Residential Historic Tax Credit

New law establishes an individual income tax credit for restoring owner-occupied residential or mixed-use structures up to $25,000 per structure based on the homeowner’s adjusted gross income,

Effective for taxable years from 2006 through 2009,

Credits may not be sold and will be lost if the house is sold within five years,

Rehabilitation costs must exceed $20,000 per structure,

A nominal application fee of $250 is paid to the State Division of Historic Preservation.

The Division of Historic Preservation should be contacted early in the planning process. Questions about the application process should be directed to Alison F. Bordelon at the Division of Historic Preservation at 342-8160 or visit www.louisianahp.org 

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