New York Rehabilitation Tax Credit for Commercial Properties
The New York State Historic Commercial Properties Tax Credit (“NYSTC”) is a 20 percent tax credit on qualified rehabilitation expenditures (QREs) available for income-producing buildings which are determined a “qualified historic structure” by the New York State Historic Preservation Office (NY SHPO) and are substantially rehabilitated. The program follows the federal historic tax credit (HTC) and requires no additional application, but to receive the state credit, the project must be in an eligible census tract.
- 20 percent of qualified expenditures for commercial properties located in a census tract with a median income at or below the State Family Median Income level, a Qualified Census Tract or in a state Area of Chronic Economic Distress.
- Small projects, with QREs of $2.5 million or less, can receive a state credit worth 150% of the federal credit. This change applies from Jan. 1, 2022, to Jan. 1, 2025.
- Credits can be carried forward indefinitely. (Five-year compliance period.)
- All rehabilitation work must be approved by the NY SHPO and comply with the Secretary of the Interior’s Standards for Rehabilitation.
- The credit is taken in the year the NY SHPO approves the completed work.
- If the credit is more than the income tax for that year, unused state tax credits will become refundable.
- There is no application form.
- After Part 3 of the federal application is approved by the National Park Service and, the state fees are paid, The New York State Office of Parks, Recreation and Historic Preservation will issue a certification allowing owners to take the state credit.
Who can use the credit?
The tax credits are available to the New York taxpaying owner of any income-producing property in New York.
NEW YORK STATE HISTORIC BARNS TAX CREDIT
The Historic Barns Tax Credit provides an income tax credit of 25 percent of eligible expenses for the substantial rehabilitation of any historic barn in the state. The credit was implemented to help preserve the historic barns of New York’s landscape. The barn must either be listed on the New York State or National Register of Historic Places (NRHP) or have been built or placed in agricultural service prior to 1936.
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