Historic Rehabilitation Tax Credits

Tax credits encourage the preservation and continued use of historic buildings by offering economic incentives for their rehabilitation. The Louisiana Division of Historic Preservation administers two historic rehabilitation tax credit programs for income-producing buildings: the Federal 20% Historic Rehabilitation Tax Credit Program and the 20% State Commercial Tax Credit Program.

These programs have helped preserve many historic buildings throughout Louisiana. They not only offer an incentive to preserve historic buildings, but also act as a major force in economic development. The use of tax credits encourages private sector rehabilitation of historic buildings and is one of the most successful and cost effective community revitalization programs. These programs generate jobs and create commercial, residential, and industrial spaces within historic buildings.

A tax credit is a direct, dollar for dollar, reduction in the amount of money a taxpayer must pay in taxes for a given year. For example, if a taxpayer owes $5,000 in taxes to the Internal Revenue Service or Department of Revenue, but has a $3,000 credit, he only pays $2,000. Thus he pockets the $3,000 he would otherwise have to pay in taxes. A credit is much better than a deduction which merely reduces a taxpayer’s income and puts him in a lower tax bracket.

Time and time again, we hear that these programs make the numbers work for development projects. Louisiana is consistently one of the top ten performing states in the nation, both for the number of historic rehabilitation projects completed and dollars leveraged. To date, historic rehabilitation tax credits have leveraged more than $3.7 billion in investment in historic properties in Louisiana alone.

Both of these optional, yet restrictive programs listed below are administered by the Louisiana Division of Historic Preservation. Each program may be used independently, but there are certain instances where both programs may be used together, sometimes referred to as twinning or stacking.

Federal Historic Rehabilitation Tax Credit Program

A 20% federal income tax credit is available for the rehabilitation of historic, income-producing buildings that are determined by the National Park Service to be "certified historic structures." The Division of Historic Preservation and the National Park Service review projects to ensure their compliance with the Secretary of the Interior's Standards for Rehabilitation. The Internal Revenue Service defines qualified rehabilitation expenditures on which the credit may be taken.

State Commercial Tax Credit Program

A 20% state income tax credit is available for the rehabilitation of historic, income-producing buildings that are determined by the Division of Historic Preservation to be "certified historic structures." The Division of Historic Preservation reviews projects to ensure their compliance with the Secretary of the Interior's Standards for Rehabilitation. The Louisiana Department of Revenue defines qualified rehabilitation expenditures on which the credit may be taken.


Tax Incentives Map

Utilize the map below to determine if a building is located within a National Register Historic District, is individually listed in the National Register of Historic Places, and/or is located within a Cultural District. Buildings located within these areas may be eligible for historic rehabilitation tax incentives. 

Historic rehabilitation projects located within designated Federal Opportunity Zones may be eligible for additional economic incentives. For more information on Opportunity Zones, please visit Louisiana Economic Development.

Contact Information
Phone (225) 342-8160
Fax (225) 219-9772

Mailing Address: Tax Incentives Staff, Division of Historic Preservation
P.O. Box 44247
Baton Rouge, LA  70804

Overnight Mail: Tax Incentives Staff, Division of Historic Preservation
4th Floor, 1051 N. Third Street
Baton Rouge, LA 70802

©2019 Louisiana Department of Culture, Recreation and Tourism