Louisiana Historic Property Tax Credits
Yes, Louisiana offers significant tax credits for rehabilitating historic properties through two main programs:
1. State Commercial Tax Credit (SCTC)
- Offers up to 20% tax credit on qualified rehabilitation expenses
- Property must be income-producing
- Building must be listed on the National Register of Historic Places or be in a registered historic district
- Minimum investment of $10,000 required
2. State Residential Tax Credit (SRTC)
- Provides up to 18.5% tax credit for homeowners
- Must be owner-occupied residential property
- Property must be listed on National Register or in historic district
- Minimum investment of $20,000 required
Key Requirements
- Work must meet Secretary of Interior’s Standards for Rehabilitation
- Project must be approved by Louisiana Division of Historic Preservation
- All work must be completed within 24 months
- Credits can be carried forward for up to 5 years
Frequently Asked Questions
Q: Can I combine federal and state historic tax credits?
A: Yes, qualified commercial projects can stack federal (20%) and state (20%) credits for up to 40% total credit.
Q: What expenses qualify for the credit?
A: Most rehabilitation costs including structural, mechanical, electrical, plumbing work and architectural fees qualify.
Q: Is there a cap on the credit amount?
A: Commercial projects are capped at $5 million per project. Residential projects are capped at $25,000.
Q: How do I apply?
A: Submit application forms and documentation to the Louisiana Division of Historic Preservation before starting work.
Q: Are the credits transferable?
A: Yes, commercial credits can be sold to third parties. Residential credits are non-transferable.
Q: How long does approval take?
A: Initial review typically takes 30-45 days. Final approval after completion takes 60-90 days.
Q: What happens if I sell the property?
A: Properties must be held for 5 years or credits may be subject to recapture.
The Bottom Line
Louisiana’s historic rehabilitation tax credits provide significant financial incentives for renovating historic properties. When combined with federal credits, they can offset up to 40% of project costs for commercial properties. However, strict requirements and deadlines must be met, so careful planning and consultation with qualified professionals is essential for success.