ABOUT THE PROGRAM:
The Historic Homes Rehabilitation Tax Credit Program provides a 30% tax credit of up to $30,000 for historic restoration and rehabilitation of one to four unit historic homes.
Although technically a tax credit, homeowners receive a state tax voucher when all restoration work is complete and paid for in full. The voucher must be sold by the homeowner to a Connecticut C-Corporation with tax liability under Chapters 207 through 212 of the CGS to receive a return of investment. The CT SHPO office can facilitate the process.
The program is open to historic homeowners and non-profit housing corporations who meet the following criteria:
- Own a historic home that is listed on the State or National Register of Historic Places, either individually or as a contributing resource to a district.
- Own a historic home with 1 to 4 residential units.
- Live in the historic home as a primary residence.
- Pay taxes in the state of CT.
A minimum expenditure of $15,000 in qualified historic restoration and rehabilitation work is required. All work must meet the Secretary of the Interior Standards for Historic Rehabilitation
Eligible expenditures include repair and restoration of: porches, steps, doors, windows, storm windows, shutters, chimneys, roofs, gutters/downspouts, painting, carpentry, foundations, lightning protection, repointing, abatement of hazardous materials, structural repairs and stabilization, staircases, decorative ornamentation, moldings, paneling, floors, millwork, plaster repairs, HVAC, plumbing, electrical, wells, septic systems, and geo-thermal systems.
Ineligible expenditures include: new construction, changes to historic floor plans, replacement of historic building fabric unless it is in-kind and the feature is beyond repair, spray foam insulation, new appliances or fixtures, the owner’s personal labor and tools, the cost of site improvements unless to provide building access to persons with disabilities, blinds, shades, lamps, carpets, landscaping, driveways, fences, architectural fees, legal fees, permits, financing fees, and any other non-construction costs. This is not a program for remodels, renovations, additions, alterations, demolitions or substitute materials.
Please submit applications and correspondence to Erin Fink by e-mail at HomeTaxCredits@ct.gov
Before beginning work, please complete a combined part 1 and part 2 application. These applications can be submitted concurrently. The part 1 application allows the CT SHPO to confirm that the home is eligible. The part 2 application allows the CT SHPO to evaluate the scope of work and corresponding quotes for construction. Instructions are included within the applications. Please plan ahead! The CT SHPO receives a high volume of applications and may take up to 30 days to review each application. PART 1 and PART 2 COMBINED APPLICATIONS LINK
After the part 2 application is approved, a 30% tax credit reservation will be issued by the CT SHPO office to the homeowner. The reservation is the amount of tax credits 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). Applicants have 5 years from the time the Part 2 Application is approved to complete the work.
After the work is completed and paid for in full, please complete a part 3 application. This application allows the CT SHPO to review the work through photographs and receipts. PART 3 APPLICATION LINK
When the part 3 application is approved, a tax credit voucher will be issued by the CT 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 project’s final qualified rehabilitation expenditures.
A homeowner can then choose to assign the voucher to a CT C-Corporation or hire a tax credit broker. Please complete a part 4 application to finalize the voucher process. When the voucher is sold, the CT SHPO does not determine processing or payment times. The CT C-Corporations will work with the homeowner to finalize payment. PART 4 APPLICATION LINK
Please note, CT C-Corporations are not required to purchase tax credit vouchers. Not all C-Corporations will buy tax credit vouchers dollar-for-dollar, many charge a fee.
Incentivize restoration and rehabilitation of historic homes. Promote the historic trades, appreciation of craftsmanship and historic materials. Promote the longevity, usefulness and sustainability of historic buildings. Benefit communities by employing local labor, purchasing local materials, preserving property values and boosting pride of place.
Historic homeowners can use this program multiple times.
Thank you for caring for your historic home in Connecticut!
Contact: Erin Fink: Hometaxcredits@ct.gov
Laws and Regulations: