Tax Credits

Tax Credits

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The Federal Historic Preservation Tax Incentives Program is designed to encourage private investment in the rehabilitation of historic buildings. The program allows 20% of qualified expenses on a certified rehabilitation project to be claimed as a credit on Federal income taxes. This program is jointly administered by the National Park Service (NPS) and the Internal Revenue Service in partnership with the State Historic Preservation Offices. The Wyoming State Historic Preservation Office (SHPO) serves as the liaison between the property owner and the NPS. The goal of this combined endeavor is to encourage preservation of community treasures and increase awareness of the benefits of rehabilitation efforts.

Although not required, it is highly recommended that you contact the Wyoming SHPO prior to beginning any rehabilitation work. We will provide you with technical assistance and information for using available tax credits. Failure to do so could result in the denial of tax credits for your project. The Wyoming SHPO also suggests that you consult with your financial advisor before completing the tax return.

 

• Buildings must be designated as a Certified Historic Building.
   
  • This is defined as a building that is individually listed in the National Register of Historic Places or is located in a Registered Historic District and certified by the NPS as contributing to the historical significance of the area.
  • If you are unsure of your building’s standing please contact your State Historic Preservation Officer (SHPO).
     
• Building must be depreciable (income producing).
   
• Renovations must be substantial.
   
  • $5,000 or equal to the adjusted basis of the building, whichever is greater.
  • Adjusted Basis = Purchase Price - Cost of Land + Improvements –Depreciation.
     
• All work must be done according to the rules set forth in The Secretary of Interior’s Standards for Rehabilitation.

 

• Only work on the building may be used for tax credit; renovations such as landscaping or sidewalk replacement are not eligible for this program.
   
• The building must be placed in service before the tax credits are used.
   
• The owner must hold the building for at least five years after renovations or the tax credit must be returned.
   
• All rehabs must be reviewed before completion by the NPS to verify that all rehab treatments are in compliance with the rules and regulations set for the in The Secretary of Interior’s Standards for Rehabilitation. 
   
• The tax credit is claimed using the Internal Revenue Service (IRS) form 3468 in the tax year that the renovated building is placed in service.
   

 

There is a three-part application process. All application forms and materials are submitted to SHPO who will submit the application to the NPS. While not required, it is highly recommended to complete the part 1 and 2 applications prior to beginning rehabilitation work.

• Part 1 Application: Certifies that the building meets the definition of a historic building.
  • Consists of a description of the building and its history. Application is accompanied by pictures printed on photographic paper.
  • Projects involving buildings already individually listed in the National Register do not need to complete the Part 1 application
     
• Part 2 Application: Describes the work to be done on the building to determine whether the project meets the Secretary of Interior’s Standards for Rehabilitation.
  • Consists of a complete, detailed description of work to be undertaken along with architectural plans, photographs, and a photo key. All photos must be printed on photographic paper.
     
• Application fee for review of Part 2 application based on cost of rehab:
  • $5,000-$79,999 = No fee
  • $80,000 - $3,849,999 = $845 + 0.15% of costs over $80,000
  • $3,850,000 or more = $6,500
     
• Part 3 Application: After the rehabilitation project is completed, this application requests approval of the project.
  • Consists of pictures printed on photographic paper taken after the completion of the rehabilitation.

As of August 15, 2023, all historic preservation certification applications must be submitted electronically, both new applications submitted to the State Historic Preservation Office (SHPOs) and materials submitted to the National Park Service (NPS) in response to requests for additional information.

Technical Preservation Services has issued revised Historic Preservation Certification Application forms and instructions.  The forms continue to be downloadable, fillable PDFs. The only change to the forms is the removal of the requirement for the applicant and NS staff to "sign in ink." Applicants will sign the application cover sheet electronically. NPS staff will also sign the forms electronically, and NPS decisions will be issued electronically. 

Additional information on the tax incentive program can be found at: https://www.nps.gov/tps/tax-incentives.htm

 

Brian Beadles
Historic Preservation Specialist
(307) 777-8594