Overview
WV SHPO’s Commercial Tax Credit Program provides both a federal and a state income tax credit to property owners who undertake the rehabilitation of historic, income-producing buildings. If all of the appropriate conditions are fulfilled, the owner will benefit from a total tax credit of 45% of rehabilitation/restoration expenses.
Eligibility
- Historic tax credits are only available to “Certified Historic Structures,” meaning it is:
- Individually listed in the National Register of Historic Places (NR), or
- Contributing building in a historic district that is listed in the NR, or
- Considered eligible for listing.
- In this case the building must be listed within 30 months of the project’s completion.
- Buildings that qualify must be commercial or income-producing properties after the rehabilitation work is complete.
- The rehabilitation work must be completed according to the Secretary of the Interior’s Standards for Rehabilitation.
- After rehabilitation, the historic building must be used as an income-producing property for at least five years by the same
owner. - The project must meet the substantial rehabilitation test. To meet the test, the owner must spend more than $5,000 or an amount greater than the adjusted basis of the building (whichever is larger), on the approved rehabilitation project. The “substantial rehabilitation” test must be met within two years or five years for a phased project during the year in which the credits are claimed.
How to Apply
The Commercial HTC involves a three-part application called the Historic Preservation Certification Application (HPCA). All applications are submitted directly to the SHPO for review, then forwarded by SHPO onto the NPS for final review. The HPCA is submitted throughout the rehabilitation project with Parts 1 and 2 generally being submitted before the work begins and Part 3 being submitted after the project is completed.
Applications for the commercial tax credit program must be submitted directly to our agency in electronic format. Go to GoApply our official electronic submission portal.