If you’re planning to rehabilitate your historic home, check out this tax credit, available through the state of Indiana.
An adjusted gross income tax credit is available for the rehabilitation of a historic residential property. A taxpayer qualifies for the credit if all of the following conditions are met:
- The historic property is located in Indiana, is at least 50 years old, and is owned by the taxpayer.
- The historic property is individually listed in the Indiana Register of Historic Sites and Structures or is a contributing resource within a listed district.
- The proposed preservation or rehabilitation work complies with the Secretary of the Interior’s Standards for the Rehabilitation of Historic Properties.
- The work is completed in not more than two years, or five years if the initial application indicates that the work is planned for completion in phases.
- The historic property is principally used and occupied by the taxpayer as the taxpayer’s primary residence.
The qualified rehabilitation expenditures (QREs) must exceed $10,000. The tax credit is equal to 20 percent of the QREs that the taxpayer makes for the rehabilitation of the historic property. The following costs do not count as QREs:
- Acquiring a property or an interest in a property;
- Paying taxes due on a property;
- Enlarging an existing structure;
- Paying realtor’s fees associated with a structure or property;
- Paying paving and landscaping costs;
- Paying sale and marketing costs.