Historic Homes Rehabilitation Tax Credit

70 Tremont StreetThe Historic Homes Rehabilitation Tax Credit (HHRTC) is designed to encourage new home ownership of historic homes and to assist homeowners in maintaining and/or rehabilitating their historic houses.

  • The HHRTC provides a 30% tax credit for qualified expenses, up to $30,000 per dwelling unit, for the rehabilitation of one to four unit buildings.
  • After completion of rehabilitation work, one unit must be owner-occupied for a period of five years.
  • Although technically a tax credit, homeowners receive a state tax voucher at the end of the process which they in turn sell to a qualified entity (i.e. Eversource).

HPA is happy to provide assistance to homeowners located in the Greater Hartford area with their tax credit application. Please use the Contact HPA form and include “Tax Credit Assistance” in the subject line or call Valerio Giadone, our Preservation Services Manager, at 860.372.0134

Eligible Properties:
One to four unit dwellings listed (either individually or in a historic district) on the State and/or National Register of Historic Places

See Hartford Properties Listed on State and National Registers of Historic Places

Eligible Owners:

  • Individual homeowners and local non-profit Community Housing Development Corporations.
  • Individual homeowners must occupy the property for five years after completion of the rehabilitation work.

Eligible expenses:

  • Requires a minimum of $15,000 in qualified rehabilitation expenses
  • 65% of total qualifying expenditures must include work directly attributable to the long-term preservation of the historic building fabric and character-defining features. (see Sample Calculations below)

 ALL WORK being done on the property must comply with the Secretary of the Interior’s Standards for the Rehabilitation of Historic Properties not just work for which tax credits are being applied for.

Common items of qualified rehabilitation work include (but are not necessarily limited to):
FoundationDetail 2 Park Terr porch
Walls
Porches
Windows
Roof
Chimney
Doors (interior & exterior)
Interior decorative features and details including ceiling ornamentation, moldings or medallions
Mechanical systems including HVAC, plumbing and electrical wiring

Generally not approved:
Replacement windows
Replacing “Yankee” or built-in gutters
Wholesale removal of siding
Blown-in foam insulation
Plastic/vinyl trim
Drywall laminated to plaster ceilings
“Permanent” Paint Products

Ineligible Expenses
Permits and fees
Architectural, Engineering and Design Costs
Landscaping/Site Work
Driveways and Sidewalks
Fencing
New Construction
Personal Labor

Sample Calculations:

Sample #1:
$15,000 – new roof
$5,000 – chimney repointing
$5,000 – electrical upgrades
$60,000 – kitchen renovation

$25,000 of proposed project costs (roof, chimney repairs & electric upgrade) are qualified expenses directly attributable to the long-term preservation of the historic building fabric and character-defining features

Total expenses eligible for tax credit = $38,461.54 ($25,000/65 X 100)

Eligible expenses $38,461.54 X 30% = $11,538.46 tax credit amount

Sample #2:
$15,000 – new roof
$5,000 – chimney repointing
$5,000 – electrical upgrades
$5,000 – repair wooden windows

$30,000 (all) of project costs are qualified expenses

Eligible expenses $30,000 X 30% = $9,000 tax credit amount

 

 

APPLICATION PROCESS

  • Work to be completed MUST BE APPROVED by the State Historic Preservation Office BEFORE any project work is started
  • Due to a high volume of applications, please factor in a minimum 30 day review period for an initial project approval from the State Historic Preservation Office

HPA is happy to provide assistance to homeowners located in the Greater Hartford area with their tax credit application. Please use the Contact HPA form and include “Tax Credit Assistance” in the subject line or call Valerio Giadone, our Preservation Services Manager, at 860.372.0134

GENERAL INSTRUCTIONS FOR COMPLETING TAX APPLICATION
Part 1 Application
Part 2 Application
Part 2 Amendment
Part 3 Application
Part 4 Application
Historic Homes Rehabilitation Tax Credit Regulations