Historic Homes Rehabilitation Tax Credit

Overview

The Historic Homes Rehabilitation Tax Credit Program provides a 30% tax credit up to $30,000 for historic restoration and rehabilitation of one to four unit historic homes.

A minimum expenditure of $15,000 is required. All work must meet the Secretary of the Interior Standards for Historic Rehabilitation. 

***After January 1, 2024, homeowners will claim the tax credit on their State income tax directly. Nonprofit corporations may claim the credits against unrelated business income tax. The updated language can be found here: HHRTC UPDATES.  ***

Summary of changes to the program on January 1, 2024:

The tax credit shall be taken in the same tax year in which the tax credit voucher is issued.  There are 3 ways to use the tax credit voucher:

  1. If the amount of the tax credit voucher exceeds the taxpayer’s liability for the tax imposed under chapter 229 (Income Tax) the Commissioner of Revenue Services shall treat such excess as an overpayment and, except as provided under section 12-739 or 12-742, shall refund the amount of such excess, without interest to the tax payer, Or,
  2. Any unused portion of such credit may be carried forward to any or all of the four income years following the year in which the tax credit voucher is issued. Any excess at the end of the four year period may not be claimed as an overpayment.
  3. Nonprofit corporations can claim the tax credit voucher against the tax due under chapter 208a in the amount specified in the tax credit voucher.

The program is open to historic homeowners and non-profit housing corporations who meet the following criteria:
1. 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. To check, visit: https://conncris.ct.gov/ 
2. Own a historic home with 1 to 4 residential units. Mixed use properties are ineligible.
3. Live in the historic home as a primary residence.
4. Pay taxes in the state of CT.

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 the use of substitute materials.

There is a multi-part online application process. To apply, view the instructions here: WORD DOC or PDF VIEWER

Part 1 and Part 2 applications must be submitted prior to the start of any preservation-related work. 

Upon approval of the Part 1 and Part 2 applications, a reservation will be issued. The reservation is the amount of money set aside while the project is underway. All reservations are valid for 5 years. The amount of the reservation can't be increased once it is issued.

Part 3 and 4 applications must be submitted when all proposed preservation work from the Part 1 and Part 2 applications is completed.

Upon approval of the Part 3 and Part 4 applications, a voucher will be issued. This voucher can be used against a homeowner's State of CT income tax.

 

If you have questions, please feel free to schedule time during our virtual office hours on Monday afternoons: Schedule online