Historic Preservation Tax Credit Information
A tax credit is a dollar-for-dollar reduction in the amount of tax owed to the government.
Tax credits to preservation projects create jobs and provide financial incentives to revitalize historic buildings. The federal government also offers a tax credit of 20 percent, which can be paired with the Colorado state tax credit. Federal and state tax laws offer tax credits for historic preservation projects that follow the Secretary of the Interior’s Standards for the Rehabilitation of Historic Properties.
Preservation tax credits for commercial properties are managed jointly by the Office of Economic Development and International Trade (OEDIT) and History Colorado.
HOW CAN THE TAX CREDIT HELP?
- Colorado’s state historic preservation tax credits for commercial properties are transferable: you can sell them upon completion of your project.
- Selling credits can bring in additional funds for your commercial project, for a cash match for a grant, or for a loan.
- Using preservation tax credits gives you access to additional federal and state funding pools, grant programs, and further tax credits.
- For Residential Properties, Historic preservation tax credits lower your tax bill, which can increase your tax refund.
WHEN TO APPLY?
Applications for the residential and commercial state preservation tax credit are accepted year-round on a rolling basis. Each commercial building is limited to $1 million in credit in any one calendar year. Owners may apply for credits on multiple properties.
Residential applicants are encouraged to apply before starting work or in the early stages of the rehabilitation project.
Note: Each residential building is limited to $50,000 in credits over a ten-year period unless the building is sold to a new owner.
