State Tax Credits

State Historic Rehabilitation Tax Credits

Considering each state’s heavy involvement in the Federal Historic Rehabilitation Tax Credit program through the State Historic Preservation Office (SHPO), it is not surprising that many states piggyback off the federal program by offering a state historic rehabilitation tax credit.  These tax credits can be in the form of a certificate, which allows them to be bought and sold similar to a piece of property, or allocated, which requires an investor to enter into the project as a partner.  Some states also offer additional credits for the rehabilitation of certain types of properties, such as manufacturing mills, that can be coupled with the historic credit to further boost the incentive.

State Low Income Housing Tax Credits

Similar to the Federal Low Income Housing Tax Credits, many states further encourage the development of affordable housing by offering a state tax credit for qualifying projects.  Like state historic rehabilitation tax credits, these tax credits can be in the form of a certificate, which allows them to be bought and sold similar to a piece of property, or allocated, which requires an investor to enter into the project as a partner.

Brownfield State Tax Credits

Brownfield state tax credits are offered for the redevelopment of contaminated industrial and commercial properties. Through the Brownfield program, property owners clean-up, restore and bring life to properties that would otherwise remain blighted and functionally obsolete. In order to encourage owners to invest in contaminated properties, a number of states offer a tax credit.