In July 2015, Colorado will offer a new tax credit for the rehabilitation of qualified historic buildings. This new credit expands and improves upon the original rehabilitation tax credit that has been on the books since 1990. The new program creates two sources of financial incentives–
Federal and state tax laws provide tax incentives for historic preservation projects that follow the Secretary of the Interior's Standards for Rehabilitation. The federal government offers a 20% investment tax credit for the approved rehabilitation of certified historic buildings used for income-producing purposes as well as a 10% credit for other types of older buildings. The state offers a similar 20% state income tax credit for approved preservation projects on historic properties.
Applicants are urged to contact the Office of Archaeology and Historic Preservation (OAHP) as early as possible to ensure all requirements are met when applying for either federal or state tax credits. Staff provides advice to property owners, developers, and architects concerning appropriate preservation and rehabilitation measures. Staff will review applications for tax incentives and make recommendations for approval.
The State Historic Preservation Tax Credit was recently reauthorized and extended to tax year 2019. Under current rules, the credit’s availability is contingent upon sufficient statewide revenue growth.
The credit will be available for taxpayers filing their Years 2014 and 2015 state income tax returns.