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Rehabilitation of historic properties credit

Who is eligible? 

You are entitled to this refundable credit if:

  • You or your business is allowed a federal rehabilitation credit under Internal Revenue Code § 47 for the qualified rehabilitation expenses relating to the rehabilitation of a certified historic structure located in New York State; and
  • all or part of the rehabilitation project is located within a census tract that is identified as being at or below 100% of the state median family income calculated as of April 1 of each year using the most recent five-year estimate from the American Community Survey published by the U.S. Census Bureau. However, if your qualified rehabilitation project is undertaken within a state park, state historic site, or other land owned by the state, that is under the jurisdiction of the New York State Office of Parks, Recreation and Historic Preservation, this requirement does not apply to your project.

How much is the credit?

  • For tax years beginning on or after January 1, 2010, and before January 1, 2025, the New York State rehabilitation of historic properties credit equals 100% of the federal rehabilitation credit amount allowed for the same certified historic structure located in New York State.
  • The total amount of the New York State credit cannot exceed $5 million per structure.
  • The credit and its limitation are computed on a per structure basis.  The fact that multiple structures may be required to be submitted on one application and assigned one project number by the State Historic Preservation Office and the National Park Service is irrelevant.
  • A small project with qualified rehabilitation expenditures of $2.5 million or less may qualify for a credit amount equal to 150% of the federal rehabilitation credit.
  • Any new credit earned from rehabilitated historic properties placed in service on or after January 1, 2015, and not used in the current tax year, will be treated as a refund or overpayment of tax to be credited to the next year’s tax. Any carry forward of credit from a prior tax year that cannot be applied against the tax for the current tax year may be carried over to the following years indefinitely.

The federal Tax Cuts and Jobs Act made changes to the federal rehabilitation credit that requires the credit to be taken ratably over a five-year period instead of the year the rehabilitated historic structure is placed in service. You are not required to claim the New York State rehabilitation of historic properties credit over a five-year period. You may continue to claim 100% of the New York State rehabilitation of historic properties credit for the tax year the rehabilitated historic structure is placed in service.

Recordkeeping requirements

Taxpayers must prove entitlement to tax credits. During the course of an audit, you may be required to provide documentation to substantiate entitlement based on the specific facts of your tax credit claim. See Rehabilitation of historic properties credit recordkeeping requirements for more information on the recordkeeping requirements for this credit.

Additional information 

Updated: