Tax Credits for Owners of Historic Properties
AT THE FEDERAL LEVEL:
- Historic structures certified by the National Park Service (those listed on the National Register of Historic Places or contributing structures within a National Register historic district) may apply for a credit of 20% toward qualifying expenses. This credit only applies to income-producing properties. All rehabilitation work is subject to review and must comply with the Secretary of the Interior’s Standards for Rehabilitation.
- Structures that are not certified by the National Park Service but were in service before 1936 and are being rehabilitated for non-residential use may still qualify for a 10% tax credit. This rehabilitation is not subject to review but must meet 3 criteria: at least 50% of the existing external walls must remain in place as external walls, at least 75% of the existing external walls must remain in place as either external or internal walls, and at least 75% of the internal structural framework must remain in place.
You can read more about both of these tax credits here.
There are also tax benefits available to owners who donate a historic preservation easement on their property to a preservation or conservation agency. Easements are complicated, and making use of these credits would require the aid of a tax attorney or accountant.
You can read more about the benefits of preservation easements here.
AT THE STATE LEVEL:
- For income-producing properties certified by the National Park Service, WV offers a state income tax credit of 10% of the capital investment in the rehabilitation of the structure. Together with the federal credit, the total benefit is 30% of the investment. For provisions, procedures, and rules, click here.
- For residential properties certified by the National Park Service, WV offers a 20% state income tax credit. For provisions, procedures, and rules, click here.
Again, these credits apply only to qualifying expenses and must conform to The Secretary of the Interior’s Standards for Rehabilitation. For an overview of these credits and a list of forms, click here.