Historic Rehabilitation Tax Credit

The Historic Rehabilitation Tax Credit (HRTC) is designed to encourage the ownership of historic structures, and to assist property owners in the rehabilitation and maintenance of historic properties. The tax credit is issued to the property owners as a state tax voucher at the end of the rehabilitation work, which in turn it is sold to a qualified entity (i.e. Eversource).

1240 Albany John E Rogers buildingHPA is happy to provide assistance to property owners, investors, developers and local municipalities 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

The CT Historic Rehabilitation Tax Credit Program establishes a 25% tax credit on the eligible expenses associated with the rehabilitation costs, and a 30% tax credit for rehabilitation projects that include affordable housing components.

State tax credits may be combined with the 20% federal historic preservation tax incentive, provided the project qualifies under federal law as a substantial rehabilitation of depreciable property as defined by the Internal Revenue Service.

IMPORTANT: Costs incurred prior to the approval of Part 2 of the tax application are not eligible for tax credit

Eligible Properties:
In general, eligible properties consists of historic buildings, and buildings located in historic districts including residential buildings with five units or more, nonresidential buildings, and mixed use buildings that are consistent with and contribute to the historic character of the district in which the property is located. Properties must be listed on the State or National Register of Historic Places.

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

Rehabilitation work:
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)

Eligible expenses:
Qualified rehabilitation expenses are in general hard costs associated with rehabilitation of the certified historic structure, and include but not limited to:
Walls
Partitions
Floors
Ceilings
Permanent coverings, such as paneling or tiles
Windows and doors
Components of mechanical. Plumbing, electrical, and sprinkler systems
Chimneys,
Stairs, escalators, elevators, and fire escapes.Ann Street Masonic Temple

Ineligible expenses:
Ineligible expenses are generally are costs associated with soft costs, site improvements, additions and new structures, and may include but not limited to:
Acquisition costs
Appliances
Carpeting (if tacked in place and not glued)
Decks (not part of the original building)
Demolition costs (removal of a building on a property site)
Fencing, landscaping, parking lots, sidewalks, retaining walls
New construction (except as required to comply with the State Building Code or Fire Safety Code)
Window treatments

Costs incurred prior to the approval of Part 2 of the tax application are not eligible for tax credit

Sample Tax Credit Scenarios

Example 1: Building without affordable housing component

Total approved rehabilitation cost = $100,000
Historic Rehabilitation Tax Credit = 25%
$100,000 X 25% = $25,000
Tax credit = $25,000

Example 2: Multifamily dwelling with approved affordable housing

Total approved rehabilitation cost = $100,000
Historic Rehabilitation Tax Credit = 30%
$100,000 X 30% – $30,000

Total tax credit = $30,000

Example 3: Multifamily dwelling with approved affordable housing combined with Federal historic preservation tax incentive

Total approved rehabilitation cost = $100,000
Historic Rehabilitation Tax Credit = 30%
$100,000 X 30% – $30,000
Federal Historic Preservation Tax Incentive = 20%
$100,000 X 20% – $20,000

Total Tax credit and incentives = $50,000

Application Process

Work to be completed must be approved by the State Historic Preservation Office before commencement of project work in order to qualify for the tax credit

Due to a high volume of applications, please factor in a minimum 60 day review period for project approval from the State Historic Preservation Office

HPA is happy to provide assistance to property owners, developers and local municipalities 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

***PLEASE NOTE: Effective October 25, 2016, program guidelines and applications have been revised. Please see read Memorandum below.***

Memorandum issued October 25, 2016

Program Guidelines and Application Instructions
HRTC Part 1 Application Form ITC-300 rev. 8/16
HRTC Part 2 Application  Form ITC-300a rev. 8/16
HRTC Part 2 Amendment Form  Form ITC-300b rev. 8/16
HRTC Part 3 Application  Form ITC-300c rev. 8/16
HRTC Part 4 Application  Form ITC-300d rev. 3/16
HRTC Part 5 Application  Form ITC-300e rev. 3/16
HRTC Fee Payment Form