In order to qualify for these tax credits, a property must be:
- be individually listed on the National Register;or
- be a contributing resource within a National Register District; or
- be within a Certified Local Historic District. and a contributing resource to it;
- have a total project cost of at least 50% of the basis of the property.
For both programs, the rehabilitation must conform to the Secretary of the Interior Standards for the Treatment of Historic Properties. Plans must be approved by the State Historic Preservation Office and, for Federal credits, the National Park Service.
Federal Historic Tax Credits
Federal Historic Tax Credits were instituted in 1976. The federal credits are administered by the State Historic Preservation Office in the Missouri Department of Natural Resources and the National Park Service. An income-producing, depreciable property - either a commercial or residential rental unit - may claim a Federal credit of 20% of the costs of rehabilitation. The rehabilitation must be " substantial," meaning that a minimum amount must be invested during the rehab. The threshold requirement for the federal program is $5,000 or the adjusted basis of the property, whichever is larger, within a 24-month (60-month, if phased) test period.
State Historic Tax Credits
A state tax incentive has been available since 1998. Both income and owner-occupied properties may qualify for a 25% Missouri Tax Credit. The State Historic Preservation Office is responsible for reviewing and approving rehabilitation work for the state credits. The federal and state credits can be used in combination for the rehabilitation of commercial or income-producing properties. Rehabilitation of non-income producing residential properties qualifies for the state credits only.
For Further Information
Missouri State Historic Preservation Office
P. O. Box 176
Jefferson City, MO 65102-0176