Historic Preservation Tax Credits are an important economic development tool to revitalize Iowa communities and preserve our cultural heritage for future generations. The program also generates economic opportunities and creates jobs for Iowans by encouraging the fix-up and reuse of historic properties. Historic preservation projects employ thousands of Iowans every year, increase spending on local services and materials, and boost property values.
The Legislature created the Historic Preservation Tax Credit program to encourage Iowans to preserve their local history and culture. Since 2001, the state has invested $177 million in Historic Preservation Tax Credits, which have helped rehabilitate 283 historic buildings in 64 communities across Iowa. These state dollars have leveraged $890 million in additional investments, including $800 million for rehabilitation and $90 million in related new construction.
To make the program even better, we made some big changes this year in how state tax credits are awarded. The Historic Preservation Tax Credit program now uses a point system to rank projects, which must be “shovel ready” to qualify for the credit. This allows the $45 million available to be allocated more efficiently by rewarding better up-front planning.
Properties eligible for the Historic Preservation Tax Credit include those listed on or eligible for the National Register of Historic Places; those that contribute to the significance of a historic district; those designated as local landmarks; and barns built before 1937 that are listed on or eligible for the National Register.
Program eligibility depends on the type of building, its assessed value and the amount of work it needs. For residential properties and barns, the value of the work must equal at least $25,000 or 25 percent of the assessed value of the property, whichever is lower. For commercial properties, the work must be at least 50 percent of the assessed value.
To learn more about Historic Preservation Tax Credits, including how to apply, go to www.iowahistory.org/historic-preservation/tax-incentives-for-rehabilitation/state-tax-credits/state-tax-credits-instructions.html.