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Show SUMMARY OF UTAH HISTORIC PRESERVATION TAX CREDIT The 1993 Utah State Legislature passed the Economic Incentives for Historic Preservation bill which created a tax credit for historic residential rehabilitations. The basic requirements of the historic preservation tax credit are explained below. What is the Utah Historic Preservation Tax Credit? A 20 percent non-refundable tax credit for the rehabilitation of historic buildings which are used as owner-occupied residences or residential rentals. Twenty percent of all qualified rehabilitation costs may be deducted from taxes owed on your Utah income or corporate franchise tax. Example: $22,000 in qualified rehabilitation costs = S4,400 state income tax credit Does My Building Qualify? Buildings listed in the National Register of Historic Places which, after rehabilitation, are used as a residence(s} qualify. The credit is not available for any property used for commercial purposes including hotels or B&Bs (bed and breakfasts). The building does not need to be listed in the National Register at the begi:'::mg of the project, but a complete National Register nomination must be submitted when the project is finished. The property must be listed in the National Register Within three years of the approval of the completed project. What Rehabilitation Work Qualifies? The work may include interior or exterior repair, rehabilitation or restoration, including historic. decorative, and structural elements as well as mechanical systems. All proposed work must meet the Secretary of the Interior's Standards for Rehabilitation and be approved by the State Historic Preservation Office (SHPO) before the work begins. Depending on the historic conditions and features, some examples of eligible work items include: • • • • repairing or upgrading windows repointing masonry repairing or replacing roofs new floor and wall coverings • • • • painting walls, trim, etc. refinishing floors. handrails, etc. new furnace, AlC, boiler, etc. electrical upgrades • • • • plumbing repairs and fixtures reconstructing historic porches compatible new kitchens reversing incompatible remodellings Necessary architectural, engineering, and permit fees may also be included. The purchase price of the building, site work (landscaping, sidewalks, fences, driveways, etc.), new additions, work on outbuildings, and the purchase and installation of moveable furnishings or equipment (e.g., refrigerators, dishwashers, etc.) do not qualify for the credit. All of the work must meet the Standards or the tax credit cannot be taken on any portion of the work. A completed application should be submitted to the SHPO at least 15-30 days before beginning the project, along with photographs showing all areas of work (both interior and exterior) and any drawings or other technical information necessary to completely understand the proposed project. How Much Money Must I Spend to Qualify? Total rehabilitation expenditures must exceed $10,000. (The tax credit applies equally to this first SI0,000.) The purchase price of the building and any donated labor cannot be included. The project must be completed within 36 months of the SHPO's approval of the proposed rehabilitation work. Utah State Historic Preservation Office (Utah Division of State History), 300 Rio Grande, SLC, UT 84101-1182 3562 Phone (801) 533- |
