Federal Historic Preservation Tax Credits
The following federal historic preservation tax credits are available:
10% tax credit for the rehabilitation of nonhistoric, nonresidential buildings built before 1936.
20% tax credit for the certified rehabilitation of certified historic structures (i.e. on the National Register of Historic Places or a building that is located in a registered historic district and certified by the National Park Service as contributing to the historic significance of that district).
Kentucky Historic Preservation Tax Credit
You must qualify for the 20% federal historic tax credit to be eligible for the following:
20% of qualified rehabilitation expenses is available for all other properties. It requires a minimum investment of $20,000 or the adjusted basis, whichever is greater, with the total credit not to exceed $400,000.
30% of qualified rehabilitation expenses is offered as a state tax credit for owner-occupied residential properties. A minimum investment of $20,000 is required with the total credit not to exceed $60,000.
The legislation caps the total tax credit expenditures at $3 million annually.