**STATE RESIDENTIAL TAX CREDIT PROGRAM SUNSETS DECEMBER 31, 2017**

The State Residential Tax Credit, created in 2005 by the Louisiana Legislature to encourage the redevelopment of owner-occupied historic homes in Louisiana, will end on December 31, 2017. This sunset will not affect homeowners who have previously earned this credit (received an approved Part C) and are already within the five year window to claim the credit on their Louisiana state income tax returns.

For State Residential rehabilitation projects that are ongoing (have an approved Part A, Part B, or both), or those for which applications have not yet been received by the Division of Historic Preservation, the following information will apply:

  • Complete Part A and B applications, including the $250 application fee, must be received by the Division of Historic Preservation (DHP) on or before December 31, 2017.
  • Any expense incurred after December 31, 2017 will be ineligible as a qualified rehabilitation expenditure and will therefore not be credit-eligible.
  • Projects must meet or exceed the $10,000 minimum qualified expenditure requirement by December 31, 2017.
  • Part C applications must be received by DHP on or before June 30, 2018.
  • The completion date reported on the Part C application must be on or before December 31, 2017.
  • Taxable year 2017 will be the final eligible year to begin the five-year period of claiming the State Residential tax credit. No residential rehabilitation tax credits will be issued on any returns after taxable year 2021.

The credit, either 18.5% or 36%, depending on building type, is available for those qualified historic buildings located in:

Those buildings that are listed individually in the National Register of Historic Places or eligible for individual listing in the National Register may also be eligible for application to the State Residential Tax Credit Program. Please visit the Louisiana National Register website for further information on listing a building in the National Register of Historic Places.

Additionally, any building in Louisiana that is at least 50 years old and is determined to be vacant and blighted is eligible for application to the State Residential Tax Credit Program. Further information on determining whether a building is vacant and blighted may be found in the State Residential Tax Credit Program Guidelines.

The State Residential Tax Credit Program is jointly administered by the Louisiana Division of Historic Preservation and the Louisiana Department of Revenue. The Louisiana Division of Historic Preservation acts as an applicant's first point of contact and reviews applications for compliance with the Secretary of the Interior's Standards for Rehabilitation; the Louisiana Department of Revenue reviews project costs. Information on costs that generally qualify can be found in the Frequently Asked Questions section. Once earned, the credit is divided evenly and awarded over a five year period. If the home is sold or is no longer the owner's primary residence during this period, the remaining portion of the credit if forfeited. 


 

State Residential Rehabilitation Tax Credit Guidelines

 Residential Program Booklet

**Please note that the Division of Historic Preservation will no longer accept Part A or Part B applications effective January 1, 2018**

This booklet (left) contains program guidelines, application instructions, frequently asked questions, and timelines for the application process.

Applications are located in the section below. 


 

 

State Residential Tax Credit Application

**Please note that the Division of Historic Preservation will no longer accept Part A or Part B applications effective January 1, 2018**

The application is a three-part process. Each part requires approval or "certification" by the Division of Historic Preservation. For a project to be eligible, the Part A must be submitted before the rehabilitation project has been completed and the building placed in service. Please read the Program Guidelines and Instructions and Checklist prior to completing the application(s).

Instructions and Checklist 

Part A - Residential Tax Credit Preliminary Application

Part B - Residential Tax Credit Proposed Rehabilitation 

Part C - Residential Tax Credit Certificate of Completion  

Residential Tax Credit Amendment Sheet

An Illustrated Guide to Completing the State Residential Tax Credit Application

 


 

The Secretary of the Interior's Standards for Rehabilitation

SOI Standards Interior

The Secretary of the Interior's Standards for Rehabilitation provides a list of ten guidelines that must be when rehabilitating a historic property for its new, modern use. These Standards must be considered when planning a project that may be eligible for historic rehabilitation tax credits.

 

 

 

 

 


 

LDR

 

The Louisiana Department of Revenue provides information on the financial implications of using the State Residential Tax Credit Program. LDR has issued a wealth of guidance on various tax topics.

Private Letter Rulings

A private letter ruling is a written statements issued by the Louisiana Department of Revenue to a taxpayer applying principles of law to the taxpayer's specific set of facts. This type of policy statement is issued only if there is no other guidance that addresses the correct application of the legal principles to the taxpayer's specific situation. 

Revenue Information Bulletins

Revenue information bulletins are issued by the Department of Revenue to clarify internal procedures and to clarify laws. LDR has issued one Revenue Information Bulletin on the effects of Act 125 of the Regular Legislative Session on the State Residential Tax Credit Program.

RIB 15-021 Income and Corporation Franchise Taxes

 


 

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

©2018 Louisiana Department of Culture, Recreation and Tourism