Ohio Historic Preservation Tax Credit Program Benefits
The Ohio Historic Preservation Tax Credit Program offers significant tax advantages for rehabilitating historic properties in Ohio. Here are the key benefits:
- Credit Amount: Up to 25% of qualified rehabilitation expenditures for historic buildings
- Project Cap: Maximum credit of $5 million per project with some exceptions for catalytic projects
- Annual Program Cap: $60 million in credits available per fiscal year
- Credit Type: Refundable state tax credit that can be claimed against Ohio’s Commercial Activity Tax, Financial Institutions Tax, or insurance premium taxes
Additional Benefits
- Credits can be combined with 20% Federal Historic Tax Credits
- Transferable to new property owners
- Helps preserve Ohio’s architectural heritage
- Stimulates economic development in historic districts
- Creates construction and permanent jobs
Frequently Asked Questions
Q: Who can apply for these credits?
A: Property owners, developers, and lessees with long-term leases can apply for the credits.
Q: What buildings qualify?
A: Buildings must be listed on the National Register of Historic Places or contribute to a registered historic district.
Q: Is there a minimum investment requirement?
A: Yes, projects must exceed $5,000 in qualified rehabilitation expenses.
Q: How long must I own the property?
A: Properties must be held for 5 years after completion to avoid credit recapture.
Q: Can residential properties qualify?
A: Yes, if they’re income-producing (rental) properties in historic districts.
Q: When are applications accepted?
A: Applications are accepted twice yearly, typically in March and September.
Q: How competitive is the program?
A: Very competitive – typically only 20-30% of applications receive funding.
The Bottom Line
The Ohio Historic Preservation Tax Credit Program offers substantial financial incentives for rehabilitating historic properties, potentially covering up to 25% of qualified expenses. When combined with federal credits, developers can offset up to 45% of rehabilitation costs. However, the application process is competitive and requires careful planning and compliance with preservation standards.