Restoring Old Homes with Tax Credits
/I’ve posted about tax credits for work on historical homes before, but I’m doing it again. The info is so helpful and it’s almost tax time, so why not?! I’ve also been through the process three times now so reach out to me if you have further questions.
Owning a historic home listed on the National Register of Historic Places has its perks, one of which is a potential tax credit. Home improvement costs could be eligible for a 20% state tax credit in Utah. To qualify, the work must be at least $10,000 over a three-year period, follow the Secretary of the Interior's Standards for Rehabilitation, and be used for residential purposes. If the property is a residential rental, it may also qualify for a federal credit.
The application process for this tax credit is straightforward. Homeowners need to submit Parts 1 and 2 of the application to the Utah Division of State History, which includes details of the planned work and before pictures of the property. After approval from the Division, the work can begin. The after pictures of the completed project must then be submitted in Part 3. Upon approval from the Division, a letter for tax purposes will be issued. In my experience, the staff at the State are incredibly helpful and happy to answer any questions and walk you through the process.
More information about the tax incentives and the application process can be found on the Utah Division of State History's website, which includes links to the Secretary of Interior's Standards and the three parts of the application. Additionally, the website also has information and links to the federal program. I’ll include a link below.
Preserving our historic homes is crucial, and the state of Utah is offering a helpful tool through this tax credit. Get all the details and see if your home improvement costs qualify for this credit.