State historic tax credit programs

Connecticut Historic Rehabilitation Tax Credit Program

Program overview:

The Connecticut Historic Rehabilitation Tax Credit Program provides a 25 percent tax credit for all qualified rehabilitation expenditures (QREs) on the rehabilitation of an income-producing historic structure.


Connecticut establishes three different types of buildings that qualify for the credit:


  • a building that has five or more residential units,
  • a building that is mixed residential and nonresidential use,
  • or a building that is of nonresidential use “consistent with the historic character of such property or the district in which such property is located.”

Aggregate cap: $31.7 million (annually)

Project cap: $4 million

Program details:

  • Credit may be combined with the federal historic tax credit.
  • Credit goes up to 30% if the project includes affordable housing component provided at least 20% of the rental units or 10% of for sale units qualify under CGS Section 839a.
  • Carry forward: 5 years.
  • If the residential portion of a mixed residential and nonresidential rehabilitation is not completed within the scheduled time frame 100 percent of the tax credit is recaptured.

Who can use the credit?

The credit is available to commercial property owners. All or part of the Connecticut Historic Rehabilitation Tax Credit can be transferred or conveyed to other Connecticut taxpayers up to three times.

Connecticut Historic Structures Rehabilitation Tax Credit

  • The state will allocate a 25 percent tax credit for total qualified expenditures for conversion of historic commercial, industrial, institutional, former government buildings, cultural building, or residential property of more than four units to residential use, including rental or condominium units.
  • Annual state cap: $15 million in tax credit reservations are available in three year cycles.
  • Transaction cap: $2.7 million in tax credits.
  • Carry forward: 5 years.
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