State Historic Rehabilitation Tax Credit

SHRTC Update

The State Historic Rehabilitation Tax Credit Program (SHRTC) regulations are filed with the California Secretary of State and effective as of November 13, 2024. SHRTC regulations 

The State of California offers tax credits for the rehabilitation of eligible historic residential and income-producing properties. 

Below you will find:

• General program overview

• Application instructions and forms

For complete SHRTC information, download and read the 10-page SHRTC Program Regulations.

Do you have a historic home? 

Learn about the California State Historic Rehabilitation Tax Credit Program for Residential Properties.  

 

Do you have a historic commercial or income-producing property? 

Learn about the federal and State Historic Rehabilitation Tax Credit Program for Commercial and income-producing Properties.

 

State Historic Rehabilitation Tax Credit Allocation Categories

Residential	Qualified Expenses Less than $1 Million	Qualified Expenses Greater than $1 Million
Budgeted allocation $2,000,000	Budgeted allocation $8,000,000	Budgeted allocation $40,000,000
Minimum $25,000 qualified expenses	Minimum $25,000 qualified expenses	Minimum $25,000 qualified expenses
Property must be listed in the California Register or National Registers	Property must be eligible for or listed in the California and/or National Registers	Property must be eligible for or listed in the California and/or National Registers
Occupancy and income eligibility requirements	Dual projects must meet federal requirements	Dual projects must meet federal requirements
Credit capped at $25,000	Credit available for 20% or 25% of QRE	Credit available for 20% or 25% of QRE

 When the total project estimated Qualified Rehabilitation Expenses exceed the funding allocated for the allocation category, OHP stops accepting applications for that category.

Program Overview

State Historic Rehabilitation Tax Credit Program

Qualified rehabilitation projects may receive a tax credit of 20% of the qualified rehabilitation expenditures (QREs). Some projects may qualify for a 25% tax credit if certain criteria are met (see Appendix D of the Application Instructions).

Residential projects costing less than $25,000 in QREs do not qualify for the tax credit. Residential projects with a QRE greater than $125,000 are limited to the $25,000 tax credit allocation cap.

Funds for the State Historic Rehabilitation Tax Credit have been allocated into three categories:

• A certified historic structure that is a qualified residence
• A certified historic building with qualified rehabilitation expenditures (QRE) of less than $1 million
• A certified historic building with qualified rehabilitation expenditure (QRE) of $1 million or more

Applications will be reviewed until the allocated funds for that application category are depleted for the year. 

A completed Initial Project Application and application fees must be submitted to be considered.

Dual Projects

Dual projects still in construction are only required to submit the state Initial Application Form and the fee.

Dual projects completed after January 1, 2022 are only required to submit the Completed Project Application form, including all statisticsal information, and the entire fee computed from the final QRE.

No additional requirements beyond the previously submitted federal submission that was transmitted separately are needed.

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Application Forms and Instructions

These application forms are fillable PDFs. Download the form and fill in the fields as directed. Save the completed form and name the file.

Please read the instructions thoroughly and complete the forms. 

Incomplete applications will be placed on hold until a completed application is provided. 

Application Instructions (v. 5/24)

Application Forms

Initial Project Application Sections 1, 2 and 3 (v5/24)

Section 2: Application Narrative (v5/24)

Section 2: Amendment Form (v5/24)

Completed Project Application Sections 4 and 5 (v5/24)