Location:
HISTORIC CONSERVATION; TAXATION;
Scope:
Connecticut laws/regulations;

OLR Research Report


December 12, 2011

 

2011-R-0451

TAX CREDITS FOR PRESERVING HISTORIC GOVERNMENT PROPERTY

By: John Rappa, Chief Analyst

You asked us to summarize the statutes authorizing tax credits for preserving historic homes and business property.

Table 1 below summarizes the statutes.

Table 1: Tax Credits for Preserving Historical Property

Program

Applicable Taxes

Eligibility Criteria

Credit Limits

Historic Homes Rehabilitation Tax Credit

(CGS 10-416 as amended by PA 11-48)

Insurance Premium

Corporation

Air Carrier

Railroad Company

Community Antenna

Utility Companies

Qualified rehabilitation expenditure must exceed $25,000

Businesses contributing funds towards the rehabilitation qualify for credits if the individual or nonprofit organization that did the work designated them for the credits

Total credits capped at $3 million per year

30% of eligible construction costs, up to $30,000 per dwelling unit

Unused credits may be carried forward up to five years

Converting Historic Business Property to Residential Uses

(CGS 10-416a as amended by PA 11-48)

Insurance Premium

Corporation

Air Carrier

Railroad Company

Community Antenna

Utility Companies

Historic commercial, industrial, cultural, institutional, mixed residential and nonresidential, former governmental property and residential buildings with five or more units listed on the national or state Register of Historic Places or located in an historic district on the national or state register

Total credits capped at $15 million per year

25% of qualified rehabilitation expenditures, up to $2.7 million

Unused credits may be carried forward for up to five years

Rehabilitating Historic Business Property for Mixed Residential and Commercial Use

(CGS 10-416b, as amended by PA 11-48)

Insurance Premium

Corporation

Air Carrier

Railroad Company

Community Antenna

Utility Companies

Historic commercial, industrial, cultural, institutional, mixed residential and nonresidential, former governmental property listed on the national or state Register of Historic Places or located in an historic district on the national or state register

Total credits capped at $50 million per three-year cycle, beginning with FY 09-12

25% of qualified rehabilitation expenditures; 30% if project includes units affordable to low- and moderate-income people

No project can receive more than 10% of credits available for the three-year cycle

Unused credits may be carried forward up to five years

JR:ro