Rehabilitation of historic properties credit
Who is eligible?
You are entitled to this refundable* credit if you or your business:
- is allowed a federal credit under Internal Revenue Code, section 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.
*For tax years beginning on or after January 1, 2015 any new credit earned for property placed in service on or after January 1, 2015 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.
How much is the credit?
- For tax years beginning on or after January 1, 2010, and before January 1, 2025, the credit equals 100% of the federal credit amount allowed for the same historic structure located in New York.
- The total amount of the New York State credit cannot exceed $5 million per structure.
- 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 of historic properties credit.
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 certified historic structure is placed in service. You are not required to claim the New York rehabilitation of historic properties credit over a five-year period. Taxpayers may continue to claim 100% of the federal credit for the tax year the certified historic structure is placed in service.
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.
- Form CT-238, Claim for Rehabilitation of Historic Properties Credit, and its instructions (for corporations)
- Form IT-238, Claim for Rehabilitation of Historic Properties Credit, and its instructions (for all others)