The Historic Homes Tax Credit provides a 30% voucher, up to $30,000 per dwelling unit on eligible rehabilitation expenditures that meet the $15,000 minimum expenditure level and can be directly attributed to the long-term preservation of the historic building fabric.
Intent of the program:
- This is an incentive program for restoration and rehabilitation of historic homes.
- This is intended to promote the historic trades, appreciation of craftsmanship and historic materials and characteristics.
- This is intended to promote the longevity, usefulness and sustainability of historic buildings.
- This is intended to benefit communities by employing local labor, purchasing local materials, preserving property values, and boosting pride of place.
- This is not a program for remodels, renovations, additions, alterations, demolitions or substitute materials.
Step 1: Complete the Part 1 Application to see if you are eligible.
- All applications must be submitted by email to Erin.Fink@ct.gov
- The home must be listed on the State or National Register of Historic Places, either individually or as a contributing resource to a district.
- Your home must be your primary residence.
- You must be a State of CT tax payer.
- Your home must be between 1 and 4 units, mixed-use properties are ineligible.
- *Applicants may submit the Part 1 application at the same time as the Part 2 application.
- Allow 30 days for the approval of the Part 1 application.
Step 2: Complete the Part 2 Application.
- The proposed scope of work must meet the program's standards for rehabilitation
- The proposed scope of work must meet the minimum $15,000 expenditure level.
- Eligible projects are listed on the Part 2 application form.
- The following projects are ineligible: landscaping, driveways, fences, new construction, demolition, whole-scale plaster removal, changes to floor plans, spray foam insulation, new appliances, new fixtures, new blinds or shades, carpets, architectural fees, legal fees, financing fees, permit fees, or replacement with composite materials.
- Allow 30 days for the approval of the Part 2 application.
Step 3: A 30% tax credit reservation will be issued by the SHPO office to the homeowner. The state reserves $3 million for this program per year. The reservation is the amount of money set aside while the owner completes the project. SHPO adds a 10% contingency (unless the project reaches the maximum $30,000 tax credit reservation amount). By statute there is no provision for increasing the amount of a tax credit reservation as a result of increased costs incurred.
- Applicants have 5 years from the time the Part 2 Application is approved to complete the work.
- Applicants must complete all projects and pay contractors in full.
Step 4: After the work is finished, complete the Part 3 Application.
- Allow 30 days for the approval of the Part 3 application.
Step 5: After the Part 3 is approved, complete the Part 4 Application.
- Allow 30 days for the approval of the Part 4 application.
Step 6: A tax credit voucher will be issued by the SHPO office to the homeowner for 30% of the project's final qualified rehabilitation expenditures.
- The final voucher amount may vary from the reservation amount. At the end of the project, the owner will earn the lesser of either the tax credit reservation or 30% of the projects final qualified rehabilitation expenditures.
Step 7: The voucher must be sold by the homeowner to a C-Corporation with tax liability under Chapters 207 through 212 of the C.G.S. to receive a partial return of investment.
- the tax credit voucher is not the same as a cash or check.
- the tax credit is not claimed by the homeowner, it is claimed by the C-Corporation it is sold to.
- A homeowner can sell the voucher to a C-Corporation directly or hire a Tax Credit Broker to facilitate the sale.
- SHPO can also help facilitate the sale of the tax credit voucher to a C-Corporation.
- C-Corporations are not required to purchase the tax credit vouchers. Not all C-Corporations will buy the tax credit vouchers dollar-for-dollar, many charge a fee. Payment by a C-Corporation is not immediate and is not determined by SHPO. SHPO does not pay homeowners.
Erin Fink at Erin.Fink@ct.gov
Please include your address, town/city, and a project/reservation number if possible in all emails.
Watch our helpful tutorial videos: Video 1, Video 2, Video 3
Laws and Regulations:
Historic Homes Rehabilitation Tax Credit Regulations