The New York State Historic Commercial Properties Tax Credit (“NYSTC”) is a 20 percent tax credit on Qualified Rehabilitation Expenditures (QREs) available for income-producing buildings which are determined a “qualified historic structure” by the New York State Historic Preservation Office (NY SHPO) and are substantially rehabilitated. The program follows the federal Historic Tax Credit (HTC) and requires no additional application, but to receive the state credit, the project must be in an eligible census tract. Contact the NY SHPO to determine a project’s eligibility under the state program.
Project Cap: $5 million in credits per project
All rehabilitation work must be approved by the NY SHPO and comply with the Secretary of the Interior’s Standards for Rehabilitation. The credit is taken in the year the NY SHPO approves the completed work. If the credit is more than the income tax for that year, unused state tax credits will become refundable.
The program sunsets in 2024.
Who can use the credit?
The tax credits are available to the New York taxpaying owner of any income-producing property in New York.
New York State HIstoric Barns Tax Credit
The Historic Barns Tax Credit provides an income tax credit of 25 percent of eligible expenses for the substantial rehabilitation of any historic barn in the state. The credit was implemented to help preserve the historic barns of New York’s landscape. The barn must either be listed on the New York State or National Register of Historic Places or have been built or placed in agricultural service prior to 1936.
The New York EDITION
New York, NY
Client: Edition hotels
Project Costs: $211 million
HTC equity: $46.5 million
Saratoga springs, NY
Client: The Algonquin Building LLC
Project Costs: $9 million
HTC equity: $3 million