Taxpayers may claim a non-refundable credit of 20 percent of the qualified rehabilitation expenditures for residential certified historic buildings that are owner-occupied or rented. The credit is claimed in the year the project receives final certification from the State Historic Preservation Office. The project cost must exceed $10,000.
A "certified historic building" is either listed on the National Register of Historic Places, or is located in a National Register Historic District and designated by the Division of State History as being of significance to the district.
You must submit the rehabilitation work plan on a Historic Preservation Certification Application and the State Historic Preservation Office (SHPO) must approve it before construction is completed. The SHPO will give you tax form, TC-40H, Historic Preservation Tax Credit after the work is completed on which they certify the credit. Do not submit this form with your tax return. Keep it and all related documents with your tax records.
Qualified rehabilitation expenditures are costs directly related to the rehabilitation and restoration of the building, including historic decorative elements and bringing structural, mechanical, electrical, and plumbing systems up to building code. Architectural, engineering, and permit fees also qualify.
Expenses related to your personal labor, property acquisition, building enlargement, moveable furnishings, landscaping and other site features (such as outbuildings and garages) do not qualify.
Any tax credit in excess of tax due will not be refunded, but may be carried forward to offset tax for up to five years.
The credit is not for properties used for commercial purposes (such as hotels, motels, bed-and-breakfast establishments). However, residential rental properties are eligible (such as apartment buildings and hotels renovated for permanent residency).
The credit is claimed by entering the allowable credit on Utah TC-40A, Part 4, using code 06.
For applications and detailed information regarding this credit, contact:
State Historic Preservation Office
300 Rio Grande
Salt Lake City, Utah 84101