20% Federal Tax Credit

Requirements
  • Buildings must be certified historic structures
  • Proposed work must follow a certified rehabilitation plan
  • Buildings must be income-producing. This includes hotels, rental residences, bed and breakfasts, office spaces, retail spaces, industrial uses, and agricultural uses.
  • The Internal Revenue Service requires that rehabilitation projects be “substantial,” meaning that the cost of rehabilitation must exceed the adjusted basis of the building. Please refer to the IRS Connection for more information.

Application Process
  • Contact the Wyoming SHPO as soon as possible to verify that your project will qualify for the tax incentive program.
  • Contact your financial advisor to ensure you are able to take advantage of the tax incentives.
  • The application process is a three-part procedure, and is described in detail below. Applications are first sent to the SHPO for preliminary review. The SHPO forwards applications with its recommendations to the NPS. All certification decisions are ultimately made by the NPS on behalf of the Secretary of the Interior, and it is possible that NPS decisions may differ from the SHPO’s recommendations.
  • Part 1 – Evaluation of Significance (used to certify that your building is an historic structure)
    • If your building is individually listed on the National Register of Historic Places, you may omit this portion of the application. Photographic documentation of the building’s interior and exterior is required before work begins in order to assist in evaluating a building’s eligibility for the tax incentive.
    • If your building is located in a National Register Historic District, you must submit this portion of the application, along with photographic documentation in order to determine whether or not your building contributes to the historic integrity of the district.
    • If your building is not listed on the National Register of Historic Places individually or within a district, you must submit this portion of the application along with photographic documentation of the building. This typically means that you should submit a draft National Register nomination for preliminary determination of eligibility.
  • Part 2 – Description of Rehabilitation (to certify that the proposed project will meet the Secretary of the Interior’s Standards for Rehabilitation.)
    • Part 2 should be submitted by all applicants prior to initiation of the project. Parts 1 and 2 may be submitted together, but Part 1 must be evaluated prior to review of Part 2.
    • Part 2 requires an outline of the building’s existing condition and all proposed work. Existing conditions which will undergo changes must be documented with photographs. Drawings may be required if the project involves major changes or an architect. The application and all materials are reviewed by the SHPO staff, which will make recommendations and provide technical assistance. Applications are then forwarded to the NPS for final review and approval.
  • Part 3 – Certification of Complete Work
    • This form must be submitted when all project work is complete. Supporting photographs of the finished work must be included. Following review and approval by the NPS, the project is certified and qualifies for the 20% credit.

    Part 1, 2 and 3 cannot be submitted at the same time and be eligible for the tax credit.

Processing Fees
  • A processing fee is required by the NPS for review of applications except where the total rehabilitation cost is less than $20,000.
  • The fee for review of a completed rehabilitation project is based on the dollar amount spent on the project:
  • Fee Cost of Rehabilitation
    $500 $20,000 - $99,999
    $800 $100,000 - $499,999
    $1,500 $500,000 - $999,999
    $2,500 $1,000,000 or more

    The fee is not due until requested by the NPS in writing.

Claiming the Credit
  • The credit is claimed for the tax year in which the rehabilitated building is placed in service.
  • Once the project work is completed and Part 3 of the application is approved, you may claim the 20% credit on IRS Form 3468.
  • The IRS requires a copy of the project’s Part 3 application form, in addition to other materials. If the tax credit amount exceeds your tax liability for the year in which the property is placed in service, the excess amount may be carried forward for up to 20 years.
  • You must hold the building for five full years after completing the rehabilitation; otherwise you are required to pay back the credit.
Department of State Parks & Cultural Resources