An Official Website of the Commonwealth of Kentucky
Head over to our Resources & Guides page to learn more about the Rehabilitation Tax Credit process and which program(s) might be a good fit for you and your project!
If you have questions about the application process, program requirements, or have challenging rehabilitation scopes, the project may benefit from early consultation with the Kentucky Heritage Council (KHC), prior to any work beginning. A preliminary consultation is also strongly recommended prior to the submission of a Part 1 application for projects that contain multiple buildings that were functionally-related historically. The KHC can request the National Park Service (NPS) attend a preliminary consultation, if the project's specific circumstances might benefit from early coordination between the agencies. A preliminary consultation generally focuses on a single concern or a few specific issues (e.g., a change to a street façade or a change to a significant floor plan or primary interior space); it is not the review of an entire project. Preliminary consultations are advisory only, limited to the specific issue(s) for which the consultation was requested, and is never a formal determination or a substitute for a Part 2 application.
If you'd like to request a Preliminary Review Meeting, please compile photos of the site and areas of concern, a statement of the issues you're requesting to discuss (limited to 2-3 items for review), and email your request for a Preliminary Review Meeting to: Katherine.Wilborn@ky.gov
To avoid error messages, document corruption, and loss of unsaved changes, please make sure you follow these steps when downloading the State and Federal Application Forms that are provided below:
The forms will automatically open in a new web browser tab or window. DO NOT edit the forms in that browser tab or window. Your edits will not be saved.
You must DOWNLOAD the forms and SAVE them to your computer. To download and save, right click on the document and choose "Save As..." OR right-click on the web address link and choose "Save Link As..."
Choose a location to SAVE your applications. Please save your Forms following this naming convention:
Part#_Address_County_City_KYExample: Part1_410HighSt_Franklin_Frankfort_KY Naming Convention Guide.pdf
Once the forms are DOWNLOADED, SAVED, and NAMED, you may open and fill out the forms using a variety of programs; however, Adobe Acrobat typically works best. Please remember to SAVE OFTEN. The Federal forms may need to be downloaded directly from the NPS's website, depending on your browser settings and operating system. If you are having trouble with the Federal forms (below), you may download them directly from the NPS's website, here. If you encounter difficulties or require the forms in a different format, please email us and we will do our best to accommodate your needs: Katherine.Wilborn@ky.gov
Part 1 presents information about the significance and appearance of the building prior to rehabilitation work beginning and is accompanied with "before" photos, a photo-key plan, and (if applicable) a historic district map indicating where the property is located within a NRHP certified historic district. Photo Form template is available below. Examples of Photo-Key Plans and instructions can be found under our "Resources & Guides" page.
Photos are essential to assessing the condition of the property and the appropriateness of the proposed changes. Photos must be accompanied by a Photo-Key Plan (examples are located under our Resources & Guides page). The KHC has developed a Photo Form template, to assist applicants in meeting the Photo-Documentation requirements for State and Federal Tax Credit applications. Instructions for how to add additional "Photo Pages" are provided at the bottom of Page 1. If an applicant is submitting a State and Federal project, only one Photo Form is required and can be used for both programs. Using the prepared Photo Form template (below) is not required. If an applicant chooses to create their own Photo Form, please ensure that all photo size and labelling requirements are met.
Photo Form.pptx (Template)
Part 2 describes the condition of the building prior to work beginning and the planned rehabilitation work. The proposed work will be evaluated based upon the Secretary of the Interior’s Standards for Rehabilitation. Beginning work prior to receiving Part 2 certification of proposed work is done at the applicant's own risk. If the project proposes any new construction or demolition (including interior floor plan changes), architectural drawings showing the Existing and Proposed conditions will need to be submitted alongside the Part 2 Application(s).
Amendments are always recommended when a project's scope is substantially changing from what was reviewed in the Part 2 description. Supplemental materials, such as drawings, specification sheets, and additional photos may be necessary to fully assess and understand the changes that are taking place within the project proposal. If you have a State and Federal Tax Credit application, you are welcome to only submit the Federal Amendment, to reduce redundancy of materials. Amendment forms are also used when a property owner is undertaking work after a tax credit approval, during the monitoring period.
State projects expire. The KHC will notify the Applicant and Project Contact (if applicable) at least twice (once electronically and once by mailed notice) prior to your project's expiration and closure, where the allocated credits will be recaptured back into the next fiscal calendar's funds. Expirations take place three years after the date of your Allocation Letter. Should you wish to keep your project active, you may file an Extension Request (below) and pay an additional Review Fee. Please note that Extension Requests only extend your timeline to file a Part 3 application, and does not extend the 24-month period that state projects have to claim qualified expenses for tax credits. There is no formal Federal extension request, but if you have questions about project closures, you may contact the NPS at: NPS_TPS@nps.govShould you wish to withdrawal your application at any time prior to receiving the credits, you may do so in writing, via email or using the Withdrawal Request form, below.
Part 3 of the application is submitted after the project is complete and documents that the work was completed as proposed. It is important to note that approval and certification of the "certified rehabilitation" project does not mean that the applicant has met the QRE and/or related tax requirements for State or Federal income tax purposes. Documentation substantiating QREs may be requested. Its always recommended to consult with an accountant or tax advisor to ensure that the applicable tax credit is beneficial to your own tax and financial situation, and is in filed in accordance with applicable tax laws.
The KHC does not provide tax-related advice. Once the rehabilitation project is approved by KHC, we refer your application to the appropriate taxation agency. We do not handle your tax filings nor do we issue refunds. If you have any questions about Federal and/or State Tax filings, state refunds, or you have questions, you should reference the following websites regarding the IRS's 3468 Form and KyDOR's ITC and TCS Schedules.
Please ensure your email contact is correct on all application forms. Please note that the KHC has followed the National Park Service's efforts to go digital. The National Park Service (NPS) created a fully electronic Tax Credit process in September 2023. As such, all State and Federal Rehabilitation Tax Credit applications MUST be submitted digitally AND on the correct electronic Application Forms (located on this page), or they shall be deemed incomplete and the applicant notified to resubmit correctly. Furthermore, the Site Development Program will issue all State Historic Tax Credit determinations and correspondence by email to the applicant(s) from March 1, 2023 henceforth. The National Park Service provides their approval documents to the applicant for Federal Historic Tax Credit applications via email, as well. The only documents that shall be sent to the applicant via written notice in the mail, per our regulations, shall be: