Federal Historic Rehabilitation Tax Credit
The program provides a 20% tax credit for rehabilitation expenditures to a certified historic structure. » The building must be depreciable property–rental or commercial » Restoration must be substantial–exceeding the adjusted basis of the property (purchase price less value of the land) or a minimum expenditure of $5,000 (if the property has been depreciated) » Rehabilitation expenditures that qualify include items directly related to the repair of the structure (architectural fees, engineering fees, paint, wiring, plumbing, roof repair, etc) » The credit can be carried back one year and forward twenty years. » If a building is not located within an historic district and was constructed prior to 1936, it may qualify for a 10% tax credit if restoration is substantial–exceeding the adjusted basis of the property (purchase price less the value of the land). The Federal Historic Rehabilitation Tax Credit Program is administered by the Division of Historic Preservation located within the Louisiana Department of Culture, Recreation, and Tourism. Please contact the CRT tax incentive program staff at (225) 342-8160 for additional information and eligibility requirements.
Restoration Tax Abatement Program for Improvements to Structures
When renovation has not yet begun, five-year property tax abatement on improvements to structures is available, with a five-year option for renewal » Existing structures in downtown, historic, or economic development districts are eligible. Spanish Town and Beauregard Town are included » Approval must be obtained from the State Board of Commerce and Industry and the East Baton Rouge Metropolitan Council The Restoration Tax Abatement Program is administered by Louisiana Department of Economic Development. Contact Becky Lambert at Becky.Lambert@la.gov or (225) 342-6070 for additional information and eligibility requirements.
State Residential Historic Rehabilitation Tax Credits
For residences located in a DDD and classified as historically significant by Louisiana Division of Historical Preservation, the state offers a tax credit up to $25,000 per structure based on eligible costs or rehabilitation.
To be eligible for the 25% State Tax Credit:
- The work is carried out on a building which has been determined to be a Qualified Residence
- The building is rehabilitated according to the Secretary of the Interior’s Standards for Rehabilitation
- The costs of the rehabilitation exceed ten thousand dollars ($10,000)
- The rehabilitated building is the owner’s primary residence
- The work is primarily rehabilitation and not remodeling
The Credit There is a 25% credit for qualifying buildings. If, however, the building is determined to be vacant and blighted, the credit award is increased to 50%. Tax Credits awarded by the state will not exceed $10 million in any calendar year. Credits will be granted on a first-come, first-served basis. The credits will be awarded when the project is completed. Only one State Residential Historic Rehabilitation Tax Credit is allowed per building.
- A contributing element to a Cultural District
- A contributing element to a National Register District
- A contributing element to a locally designated historic district
- A contributing element to a Main Street District
- A contributing element to a Downtown Development District
- A residential structure that has been listed or that is eligible for listing on the National Register of Historic Places
- A vacant and blighted building at least 50 years old.
Vacant and Blighted Properties A building is considered vacant and blighted if it has been unoccupied for six months, and if at least one of the following conditions exists:
- The building conditions pose a danger to the community
- The building is not being properly maintained
- The building is becoming dilapidated
- The building is attracting illegal activity
- The building is a fire hazard
- The building is a factor in depreciating property values in the neighborhood due to its poorly maintained state.
Please contact the CRT tax incentive program staff at (225) 342-8160 for additional information and eligibility requirements.
In addition to the aforementioned incentives, the Downtown Development District is currently working with the City of Baton Rouge, Baton Rouge Area Chamber, Louisiana Economic Development and private sector partners to design new incentives for downtown development. Stay tuned for new updates and announcements regarding economic incentives for Downtown. For additional information contact the Downtown Development District at DDD2@brgov.com or (225) 389-5520.