Rehabilitation Tax Credits

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Overview of Rehabilitation Tax Credits:

A Historic Rehabilitation Tax Credit is a voluntary, dollar-for-dollar credit toward a property owner's income taxes, based on the cost of rehabilitating their certified historic property. 

1. ​To qualify, your property must be listed on the National Register of Historic Places​. You can search for your property here or contact our National Register Coordinator if you're unsure if your property is listed. 
   
   
2. Next, your project must meet the minimum investment requirements ($20,000 minimum or the adjusted basis) and must comply with t​​he federal guidelines of "Rehabilitation​." Staff is here to support and guide you, so the project successfully meets the Standards of Rehabilitation. 
    
   
3. The Rehabilitation Tax Credit program is a three-part application process, whereas Parts 1 and 2 are submitted before the project begins and Part 3 is submitted after the work is complete. Projects with approved​ Part 1 and 2 applications will be allocated funding. Your tax credit can be awarded after​ the work is complete and the Part 3 application is approved.
   

Applicants are strongly encouraged to submit applications and receive Part 1 and Part 2 approvals prior to the start of rehabilitation. Work undertaken without prior approval is done at the applicant's own risk. ​

See our resources, below, for more information or contact us today with your questions! 

Documents and Resources:

Resources & Guides

We've compiled helpful tools, resources, and tutorials to assist everyone, from First-Time Applicants to Advanced Users of the program.

Applications & Forms

All State and Federal Rehabilitation Tax Credit Applications are located here, including Photo Forms.

Project Examples

Coming soon!

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​​Frequently Asked Questions: 

Applicants should file a Rehabilitation Tax Credit project (Part 1 and Part 2 applications) before beginning any work.
If a project has already begun and meets the programmatic requirements, it may be eligible for retroactive approval. It is at the applicant's own risk to apply retroactively. ​For retroactive applications, the project must have at least one "QRE" (Qualifying Rehabilitation Expense) within the project's Allocation Year.​ Please review applicable Tax Laws and see the KRS and IRS​ guidance on statutory limitations for filing or amending​ a tax return. 

If you have tax-related questions, please contact: 

• KY Dept. of Revenue: DORTaxCredits@ky.gov​
• IRS, Tax Credits: Maria.Blake@irs.gov​​

Do I need to describe all work or only the eligible​ work?

​A project must have all three applications (Parts 1, 2, and 3) approved by the Kentucky Heritage Council before the awarded tax credit amount may be applied to your tax return. ​The awarded credit amount is applied to the tax year that the project was completed in; not the year the KHC receives or approves your Part 3 application. Random financial reviews can be requested and applicants should be prepared to provide documentation substantiating their QREs. The​ Kentucky Heritage Council does not provide any tax-related advice.  ​

The Rehabilitation Tax Credit program is not a grant. However, we have a Grant Opportunities page, to assist you in your research for external funding! ​

Who can I contact with questions? 

​Katherine.Wilborn@ky.gov or KHC.TaxCredits@ky.gov