Residential Historic Rehabilitation Credit

An adjusted gross income tax credit is available for the rehabilitation of historic residential property. The qualified expenditures for preservation or rehabilitation of the historic property must exceed $10,000. The tax credit is equal to 20 percent of the qualified expenditures that the taxpayer makes for the preservation or rehabilitation of the historic property.

A taxpayer qualifies for the credit if all of the following conditions are met:

1. The historic property is located in Indiana, is at least 50 years old, and is owned by the taxpayer.
2. The historic property is listed in the Indiana Register of Historic Sites and Structures.
3. A proposed preservation or rehabilitation plan complies with the Secretary of the Interior’s Standards for the Rehabilitation of Historic Properties.
4. The preservation or rehabilitation work that is subject to the credit substantially complies with the preservation or rehabilitation plan consistent with Secretary of the Interior’s Standards for the Rehabilitation of Historic Properties.
5. The preservation or rehabilitation work is completed in not more than two years, or five years if the preservation or rehabilitation plan indicates that the preservation or rehabilitation is initially planned for completion in phases.
6. The historic property is principally used and occupied by the taxpayer as the taxpayer’s primary residence.

The qualified expenditures for preservation or rehabilitation of the historic property must exceed $10,000. The tax credit is equal to 20 percent of the qualified expenditures that the taxpayer makes for the preservation or rehabilitation of the historic property. The following costs do not count as qualified expenditures:

• Acquiring a property or an interest in a property;
• Paying taxes due on a property;
• Enlarging an existing structure;
• Paying realtor’s fees associated with a structure or property;
• Paying paving and landscaping costs;
• Paying sale and marketing costs.

Residential Historic Rehabilitation Credit Application

Please contact the Indiana Division of Historic Preservation & Archaeology for further information regarding the Indiana Register of Historic Sites and Structures and the tax credit programs.

For questions regarding the tax credit programs, please contact Ashley Thomas at 317-234-7034 or asthomas@dnr.IN.gov.