Benefits of Missouri’s Historic Preservation Tax Credit Program
The Missouri Historic Preservation Tax Credit Program offers significant financial incentives for rehabilitating historic properties. Here are the key benefits:
- Credit Amount: Property owners can receive state tax credits equal to 25% of eligible rehabilitation costs
- Stackable Credits: Can be combined with 20% federal historic tax credits for up to 45% total tax credits
- Transferability: Credits can be sold to other Missouri taxpayers if the owner cannot use them
- Economic Impact: Since 1998, the program has leveraged over $9.7 billion in private investment in Missouri
- Job Creation: Rehabilitation projects have created over 49,000 jobs across Missouri
- Property Values: Restored historic properties typically see 20-30% increases in value
- Community Benefits: Helps revitalize neighborhoods and preserve local architectural heritage
Eligibility Requirements
- Property must be listed on National Register of Historic Places or contribute to a historic district
- Minimum investment must be 50% of property’s total basis
- Work must meet Secretary of Interior’s Standards for Rehabilitation
- Project must be approved by Missouri Department of Economic Development
Frequently Asked Questions
Q: What types of properties qualify?
A: Commercial, industrial, and residential properties listed on National Register or in historic districts
Q: Is there a cap on credit amounts?
A: $90 million annual program cap for larger projects; no cap for smaller projects under $1.1 million
Q: How long do I have to complete the rehabilitation?
A: Projects must be completed within 2 years of approval
Q: Can I sell the credits?
A: Yes, credits can be transferred to other Missouri taxpayers
Q: Do I need to own the building?
A: You must have ownership or long-term lease rights
Q: What costs are eligible?
A: Construction costs, architectural fees, developer fees, and other direct rehabilitation expenses
Q: How long must I hold the property?
A: Property must be held for 5 years after completion
The Bottom Line
Missouri’s Historic Tax Credit Program provides substantial financial incentives for rehabilitating historic properties, with credits covering up to 25% of eligible costs. When combined with federal credits, the program can offset nearly half of qualified rehabilitation expenses. This makes historic preservation projects significantly more financially viable while helping revitalize communities across Missouri.