Outside of the current incentive of low interest rates, Louisiana offers a variety of tax credit programs that can help justify the costs associated with restoration. I’ve done my fair share of Federal and State Historic Tax Credit applications on larger projects through my work, but I was unfamiliar with the State Residential Tax Credit prior to exploring options for this house. To summarize what the program offers and requires:
-Homeowners may qualify for a 25% tax credit (50% for vacant and blighted properties) against their individual state income taxes when they rehabilitate their historic home
-The property must be the owner’s primary residence.
-There is a $25,000 credit cap per building, with one credit allowed per building.
-Rehabilitation costs must exceed $10,000.
While our house does not fall within a New Orleans historic district (HDLC), we are in a Louisiana Cultural District along with most of the city. This is all that is needed to qualify for the program. There is a cap on the funds every year and it is first come first serve, so I would think there is some logic to submitting the application in the early part of the year. The application has to be submitted prior to the work commencing and is in three parts which all require approval from the State Historic Preservation Office.
Here is more information about the program.
And here is the map of the cultural district that our house is located in: