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.
Form IT-237, Claim for Historic Homeownership Rehabilitation Credit, and its instructions