State Historic Rehabilitation Tax Credit (SHRTC) — Residential Program

The State of California offers tax credits for rehabilitating eligible historic residential properties.

Below, you will find: 

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

Residential Program Project Eligibility

NOTE: All projects must meet general eligibility requirements:

  • Project property must be either:

o    Listed on the California Register of Historical Resources or National Register,

Or

o    Listed as a contributor to a registered historic district in the California Register or National Register.

  • Have a Qualified Rehabilitation Expense (QRE) greater than $25,000.
  • The fee simple owner or someone with written permission from the fee simple owner may apply.
  • The property must be a Qualified Residence:

o    The residence must be owned and occupied by an individual taxpayer who has a modified adjusted gross income of $200,000 or less,

And,

o    The applicant occupies or will occupy the residence within two years after the rehabilitation of the residence.

Residential projects with a QRE greater than $125,000 are limited to the $25,000 tax credit allocation cap. 

Consult your tax profession with any questions about the tax implications of this program. 

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 Form Links

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) 

 

How to Apply

1. Read the Application Instructions

2. Once your application is complete and you have all the required documents:

Option 1:  Submit Online

  1. Email calshpo.tax@parks.ca.gov to request a project folder, including the property name, address and county. Refer to Appendix B of the Application Instructions for detailed instructions.
  2. Our office will provide a link to a shared project folder. The folder will include the assigned OHP project number. 
  3. Upload your Initial Project Application and all supporting PDF documents to the folder. The OHP will be automatically notified when documents are uploaded. 

Option 2: Submit by Mail

Residential Project applications may be submitted by mail. The OHP will email confirmation of receipt.

Please note that the OHP will not mail back documents or photos. 

 3. Mail your application fee to: 

 OHP Tax Credit Program
P.O. Box 942896
Sacramento CA 94296

Make checks payable to “Office of Historic Preservation”

Note: Application reviews will begin once we receive your application fee. Fees are non-refundable except when tax credit funds have run out. 

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

Application Fees

The Office of Historic Preservation charges a fee to review the Initial and the Completed Project applications. The fee amount for a qualified residence project is $450 for the Initial Project Application and $450 for the Completed Project Application as per the Application Instructions. Fees must be submitted with the application for the application review to be performed. Fees are nonrefundable unless allocation funds are insufficient.

 

Communicating with the OHP

If you need to email the OHP (calshpo.tax@parks.ca.gov) about your project, please make sure to reference your OHP project number.

We will notify applicants via email:

  • Upon receipt of an application
  • If any documents are missing
  • Application status updates 

 

Frequently Asked Questions

  • The home must be listed in the California Register.

  • The Qualified Rehabilitation Expenses for the project must be at least $25,000.

  • Once the project is complete, you must live at the property as your primary residence within two years of its completion.

  • Your individual modified adjusted gross income cannot exceed $200,000. 

Qualified rehabilitation expenditures are costs incurred by rehabilitating the building. Examples of these expenses include but are not limited to:

  • Interior or exterior work needed to preserve the functioning of the building
  • Updating Electrical Wiring
  • Plumbing
  • Foundation repair/reinforcement
  • Environmental Remediation
  • Improving energy efficiency

It DOES NOT INCLUDE new construction or additions, furniture, landscaping, or small appliances.
More information can be found on the QRE Guidance page.

To be eligible for the tax credit, the residence must:

  • Be owned and occupied by an individual taxpayer who has a modified adjusted gross income of $200,000 or less,
  • and the project property must be the taxpayer’s principal residence or what will be the taxpayer’s principal residence within two years after the rehabilitation of the residence.

In addition, the residence must be a Certified Historic Structure, be listed on the California Register of Historical Resources or listed as a contributor to a registered historic district that is listed in the California Register.

Please contact us at calshpo.tax@parks.ca.gov using the subject line “CR listing status request for <property address, city and county>.”

In the body of the email include:

-provide your full name

-the historical name of the building (if any)

-the year built if known

-Photos of the property (optional)

OHP staff will reply to inquiries within five business days.

Please note: Our office can only verify whether your property appears on the California or National Register. We cannot confirm whether it is eligible to be listed on either register or whether it is eligible to receive the State Historic Rehabilitation Tax Credit. To have your property evaluated for listing or tax credit eligibility, you must submit the required application. 
Instructions for nominating a property to the California or National Register are on our Registration Programs webpage. 

Nomination and listing of a property in the California or National Register is a separate process. Your property must be listed in the California Register/National Register before applying for state tax credit. Please visit the "Procedures for Registration" section of the California Register of Historical Resources page. 

The length of the nomination process depends on several factors. In general, eligible property nominations take 6-12 months to be added to the California Register. 

Thoroughly read the California Register Checklist for Submission and closely follow instructions. 

The OHP will stop accepting applications for those categories when funding runs out. We will return unprocessed applications and fees to the applicant.

All applicants must resubmit their application if/when funding is replenished.

The Mills Act program is administered by participating local governments. The Mills Act is a long-term contract with your local government regarding property tax abatement. The State Historic Rehabilitation Tax Credit (SHRTC) is offered to eligible residences and properties throughout the state as a one-time (recipients must wait 10 years to reapply) tax credit to offset the cost of rehabilitating or maintaining the property.  

The Office of Historic Preservation has no oversight in implementing the Mills Act. Please refer to our website's Mills Act Program page for more information on the program and a list of known participating counties and cities.  

Please check with your tax professional to confirm your project or organization would qualify for this program. 

Please check with your tax professional to confirm your project or organization would qualify for this program.