State Historic Preservation Tax Credit Program

State Historic Preservation Tax Credit Program

The State Historic Preservation Tax Credit Program provides a state income tax credit for the sensitive, substantial rehabilitation of historic buildings. It ensures character-defining features and spaces of buildings are retained and helps revitalize surrounding neighborhoods. The program provides an income tax credit of up to 25% of qualified rehabilitation expenditures (QREs).

The Iowa Economic Development Authority (IEDA) administers the program in consultation with the State Historic Preservation Office of Iowa (SHPO). Funding applications, referred to as a registration round, are accepted in set periods during the year.

This program offers tax credits to developers who sensitively rehabilitate historic buildings to offer them new life. Iowa offers this tax credit program to ensure character-defining features and spaces of buildings are retained to help create distinct and vibrant communities.

• State income tax credit of up to 25% of the qualified rehabilitation expenditures associated with the project

  • “Qualified rehabilitation expenditures” or “QREs” means the same as defined in Section 47 of the Internal Revenue Code

  • QREs generally include expenditures related to structural components of the building and some soft costs that would normally be charged to a capital account

  • QREs do not include expenditures financed by federal, state or local government grants or forgivable loans unless otherwise allowed under Section 47 of the Internal Revenue Code

  • Tax Credits are transferrable