Visit the Division of State History web site: history.utah.gov/historic_preservation
Utah law permits individuals, businesses and corporations a nonrefundable income tax credit of 20 percent of the cost of rehabilitating certified historic buildings for use as owner-occupied or rental residences. The project cost must exceed $10,000 to be eligible for the credit.
A "certified historic building" is either a building listed on the National Register of Historic Places, or is located in a National Register Historic District. The building must be designated by the Division of State History as being of significance to the district.
The work plan for the rehabilitation must be submitted on a Historic Preservation Certification Application and approved by the State Historic Preservation Office (SHPO) before construction is completed. After the work is completed and certified, the SHPO will provide the building owner with tax form, TC-40H, Historic Preservation Tax Credit. Do not submit this form with your tax return; keep it and all related documents with your tax records.
Costs eligible for the credit are those directly related to the rehabilitation and restoration of the physical elements of the building, including bringing structural, mechanical, electrical and plumbing systems up to building code. Not eligible are expenditures related to the taxpayer's personal labor, acquisition of the property, enlarging the building, landscaping and other site features, such as outbuildings and garages.
This credit is nonrefundable, meaning the amount of credit taken cannot exceed the tax liability in a given year. However, credits unused in the first year may be carried forward five years and applied against future taxes.
The credit is not available for any properties used for commercial purposes, including hotels, motels and bed-and-breakfast establishments. However, residential rental properties — including apartment buildings and hotels renovated for permanent residency — are eligible.
For applications and detailed information regarding this credit, contact:
State Historic Preservation Office
300 Rio Grande
Salt Lake City, Utah 84101
(801) 533-3503
history.utah.gov/historic_buildings/financial_assistance/
