Preserve

Preservation Tax Credits

In July 2015, the state of Colorado offered a new tax credit for the rehabilitation of qualified historic buildings.  This 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:

• Residential
• Commercial

Federal and state tax laws provide tax incentives for historic preservation projects that follow the Secretary of the Interior's Standards for Rehabilitation.  These credits allow taxpayers to reduce, on a dollar-for-dollar basis, the amount of income tax they owe to the government.  The amount of credit that can be obtained is calculated as a percentage of the overall rehabilitation costs associated with the project-

• A 20% federal tax credit for the rehabilitation of certified historic buildings used for income-producing purposes
• A 20% state tax credit for the rehabilitation of historic, owner-occupied residences
• A 20% -30% state tax credit for the rehabilitation of historic buildings used for income-producing purposes

Applicants are urged to contact History Colorado’s Office of Archaeology and Historic Preservation (OAHP) as early as possible to ensure that all requirements are met when applying for these programs.  Our staff can provide advice to owners, developers, and architects concerning appropriate preservation and rehabilitation measures.  In some cases, our staff will review applications for tax credits and make official recommendations for approval.