|OLG and DCRT
2014-15 through 2018-19
The Atchafalaya Heritage Area has been designated by Congress as a National Heritage Area.
The Louisiana Division of Historic Preservation administers the Federal Rehabilitation Tax Credit in conjunction with the National Park Service (NPS) and Internal Revenue Service (IRS) and two State tax credits in conjunction with the Louisiana Department of Revenue (LDR). The purpose of tax credits is to encourage the preservation of historic buildings through incentives to support rehabilitation of historic and older buildings. Since the inception of the Federal Rehabilitation Tax Credit, Louisiana has been a leader in certified tax credit projects, generating over $2 billion in private reinvestment in Louisiana communities. The State Commercial Tax Credit has leveraged more than $350 million in private reinvestment in Louisiana Downtown Development Districts and Cultural Districts.
What is a tax credit?
A tax credit is a direct, dollar for dollar, reduction in the amount of money a taxpayer must pay in taxes for a given year. For example, if a taxpayer owes $5,000 in taxes to the Internal Revenue Service, but has a $3,000 credit, he only pays $2,000. Thus he pockets the $3,000 he would otherwise have to pay in taxes. A credit is much better than a deduction which merely reduces a taxpayer’s income and puts him in a lower tax bracket.
Federal Historic Rehabilitation Tax Credit
State Commercial Tax Credit
State Residential Tax Credit
|For more information or|
first time tax credit inquiries please contact
|Mailing Address||P.O. Box 44247|
Baton Rouge LA 70804
|The credit is not automatically available to any owner of an historic building. An application must be filed with DHP. Although not recommended, applications can be accepted after commencement of rehabilitation work. However, the Part 1 or Part A application must be submitted/approved prior to the building’s placement in service. |
It is best for an owner not to start construction until after the Part 2 application has been approved. If work is begun without an approved application, the owner proceeds at his own risk.
Approval of a rehabilitation project by any other group, organization, or governmental entity does not insure approval by DHP or NPS.
All applicants are advised to consult with their tax attorneys and/or certified public accountants in developing projects to determine if the credit will work for you.