Historic homeownership rehabilitation credit
Who is eligible?
You are entitled to claim this credit if you:
- rehabilitate a qualified historic home in New York State, or
- purchase a rehabilitated qualified historic home in New York State.
A qualified historic home must be an owner-occupied residential structure (including a condominium or cooperative) listed on the State or National Register of Historic Places, or located in a state or national registered historic district and certified as being of historic significance to the district. The home must also be located in:
- a federal qualified census tract or area of chronic economic distress, or
- a census tract that is at 100% or below the state family median income level, or
- a city with a population of less than one million with a poverty rate greater than 15%.
The New York State Office of Parks, Recreation, and Historic Preservation administers the NYS Rehabilitation Tax Credit programs and can help determine whether a building meets these requirements. For additional information, visit NYS Parks, Recreation & Historic Preservation: Tax Credit Programs.
To qualify for the credit:
You must own and reside in the historic home in New York State in the year for which you claim the credit, and receive preliminary approval and a Certificate of Completion from the New York State Office of Parks, Recreation, and Historic Preservation.
Qualifying rehabilitation costs for the project must be $5,000 or more.
You may also qualify for the credit if you purchased a qualified historic home and meet certain conditions.
How much is the credit?
The historic homeownership rehabilitation credit is equal to 20% of the qualified rehabilitation expenditures. The credit cannot exceed $50,000 per taxpayer per year. A husband and wife who are both eligible to claim the credit may each claim up to $50,000, whether they file joint or separate returns.
If your New York adjusted gross income for the tax year is:
- $60,000 or less and your credit is more than the tax you owe, the excess credit is refundable.
- more than $60,000 and your credit is more than the tax you owe, the credit isn't refundable. However, you may carry over any excess credit to the following year or years.