Tax credits and exemptions are available to encourage the reuse of historic properties, while retaining historic character-defining features.
The State Tax Credit, Federal Tax Credit and County Historic Property Tax Exemption programs contribute to the revitalization and preservation of historic properties across the state.
The three programs use the Secretary of the Interiorās Standards for Rehabilitation of Historic Buildings and the Guidelines for Rehabilitating Historic Buildings. Multiple program use is encouraged.
State Tax Credit
The State Historic Preservation Office of Iowa administers the State Historic Preservation and Cultural and Entertainment District Tax Credit Program (HPCED) in partnership with the Iowa Economic Development Authority (IEDA).
The program has a multi-part application process which offers a fully refundable and transferable tax benefit for up to 25% of the qualified rehabilitation expenses for the sensitive rehabilitation of historic buildings.
Federal Tax Credit
The State Historic Preservation Office partners with the National Park Service (NPS) and the Internal Revenue Service (IRS) who administers the Federal Historic 20% Rehabilitation Tax Credit.
The amount of credit available under this program equals 20% of the qualifying expenses of your rehabilitation
Property Tax Exemption
The State Historic Preservation Office administers the County Historic Property Tax Exemption Program in partnership with County Boards of Supervisors.
The program offers a local property tax incentive for the sensitive āsubstantial rehabilitationā of historic buildings. While all counties are required to offer this exemption, not all counties have set priorities for the program.
The program provides a combination of four years full exemption from any increased valuation due to the rehabilitation, followed by four years of property tax increases (25% per year) up to the new valuation.