State Historic Rehabilitation Tax Credit
State Historic Rehabilitation Tax Credit
The State Historic Rehabilitation Tax Credit (SHRTC) allows a taxpayer that receives a tax credit allocation a credit against those taxes for each taxable year beginning January 1, 2022 and ending December 31, 2025, in an amount, determined in modified conformity with a specified section of the Internal Revenue Code, for rehabilitation of certified historic structures and, under the Personal Income Tax Law, for a qualified residence.
The SHRTC provides for a 20% credit of qualified rehabilitation expenditures (or 25% credit if the structure meets specified criteria) for rehabilitation of a certified historic structure or a qualified residence, as provided, within the state to be allocated on a first-come-first-served basis by the California Tax Credit Allocation Committee, in conjunction with the Office of Historic Preservation. The legislation authorizes both of these agencies to charge a reasonable fee not to exceed a specified amount for costs incurred in carrying out certain responsibilities related to the tax credit.
The aggregate amount of credit would be $50,000,000 per calendar year, plus unused allocation tax credit for the preceding year, $10,000,000 of which would be set aside for rehabilitation projects for qualified residences and for rehabilitation projects with qualified rehabilitation expenditures of less than $1,000,000, as specified.
The Legislative Analyst is annually required to collaborate with the California Tax Credit Allocation Committee and the Office of Historic Preservation to review the effectiveness of the tax credit to determine if the program may continue beyond the December 31, 2025 sunset date.
Implementation
The rulemaking package has been submitted to OAL for their review. The resubmitted rulemaking package is available to the public for their information at the links below.
To stay apprised of updates as well as more specific information about the program as it becomes available, check this webpage and/or sign up for the OHP email list.
Current Rulemaking package submitted to OAL
OHP has submitted the SHRTC regulation package to OAL for their review. The package documents are made available to the public for their information.
FSOR Public Comments and Responses Inclusive
Final Rulemaking Text (Clean Copy)
Resources
National Trust for Historic Preservation:
- State Historic Tax Credit Nationwide Data Center
- State Historic Tax Credit Resource Guide
- Report: State Historic Tax Credits: Opportunities for Affordable Housing and Sustainability