The Connecticut Historic Rehabilitation Tax Credit Program provides a 25 percent tax credit for all Qualified Rehabilitation Expenditures (QREs) on the rehabilitation of an income-producing historic structure.
Connecticut establishes three different types of buildings that qualify for the Connecticut Rehabilitation Tax Credit:
a building that has five or more residential units,
a building that is mixed residential and nonresidential use,
or a building that is of nonresidential use “consistent with the historic character of such property or the district in which such property is located.”
Project cap: $4.5 million in credits per project
Aggregate cap: $31.7 million in tax credits annually for the entire state
All rehabilitation work must comply with the Secretary of the Interior’s Standards for Rehabilitation and the credit may be combined with the federal Historic Tax Credit.
The Connecticut state tax credit can be increased to 30 percent if the rehabilitation project includes at least 20 percent of rental units or 10 percent of for sale units are affordable housing qualified under CGS Section 8-39a.
The credit is available for the tax year in which the building is placed in service.
Who can use the credit?
All or part of the Connecticut Historic Rehabilitation Tax Credit can be transferred or conveyed to other Connecticut tax payers up to three times.
The Carroll Building
Project Costs: $10.6 million
HTC equity: Over $8.7 million
Yale & Towne Industrial Complex
Client: Harbor Point Development, LLC
Built: 1910 - 1920
Project Costs: $57 million
HTC equity: Over $7 million