Federal Historic Rehabilitation Tax Credit Program
The Tax Reform Act of 1986 provides a 20% federal investment tax credit for the rehabilitation of certified historic properties. In order to receive this tax credit, the property must be income-producing and the rehabilitation work must be certified by the National Park Service as being in conformance with the Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring and Reconstructing Historic Buildings.
The role of the Kentucky Heritage Council in this application process is to advise applicants of information necessary to complete their applications, to review the significance of the buildings, and to evaluate the rehabilitation work using the Secretary's Standards. When the proposed work does not appear to meet the Standards, Kentucky Heritage Council staff will advise the applicant on how the project may be revised to comply with the Standards and receive the tax credits.
Upon completion of the state-level review, the Kentucky Heritage Council will make a recommendation and forward the application to the National Park Service in Washington, D.C. It is the National Park Service's legal responsibility to certify or deny applicants for tax benefits. While the Kentucky Heritage Council does not charge any fees for state-level review, the National Park Service does charge a processing fee which is based on the dollar amount spent on the rehabilitation. However, you are not required to send any payment until it is specifically requested by the National Park Service.
Most successful projects are those which are planned well enough in advance to allow review and preliminary certification of rehabilitation work prior to initiation of construction work.
Go to this link for more information about the Federal Historic Rehabilitation Tax Credit.
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Tax credit reviewer:
Restoration Project Manager
(502) 564-7005, ext. 4559