How to Apply for Utah’s Historic Preservation Tax Credit
Utah's Historic Preservation Tax Credit is an excellent opportunity for property owners looking to renovate or restore historic buildings while also benefitting from significant tax incentives. If you're considering applying for this credit, it’s essential to understand the process and requirements involved. Here’s a step-by-step guide on how to apply for Utah's Historic Preservation Tax Credit.
1. Determine Eligibility
To qualify for Utah’s Historic Preservation Tax Credit, your property must meet specific criteria. First, it should be a historic property listed in the National Register of Historic Places or a property that contributes to a historic district. You can verify the eligibility of your property by consulting the Utah State Historic Preservation Office (SHPO) or examining the National Register listings.
2. Understand the Credit Amount
The tax credit available in Utah is typically 20% of qualified rehabilitation expenses for income-producing properties and up to 25% for owner-occupied residential properties. It is important to familiarize yourself with the types of expenses that qualify for tax credit, which include construction, renovation, and repair costs that conform to the Secretary of the Interior’s Standards for Rehabilitation.
3. Assemble Necessary Documentation
Before you start the application process, gather all required documentation. This may include:
- Proof of ownership of the property
- Photos of the property before renovation
- Detailed rehabilitation plans and budgets
- Any additional documentation requested by the SHPO or the Utah Division of State History
4. Complete the Application
You will need to fill out the appropriate forms to apply for the tax credit. This includes the "Application for a Certificate of Historic Property Tax Credit" which can be found on the Utah State Historic Preservation website. It’s crucial to provide thorough and accurate information on the application to avoid delays.
5. Submit Your Application for Review
After filling out the application, submit it to the SHPO. The review process will determine if your project meets the required standards. It’s advisable to submit your application before starting significant rehabilitation work to ensure eligibility for the tax credit.
6. Complete the Rehabilitation Work
Once your application is approved, you can proceed with the renovation or restoration work. Remember to adhere to the plans approved in your application and maintain compliance with the Secretary of the Interior’s Standards to ensure that your project remains eligible for the tax credit.
7. Submit the Certification of Completed Work
After completing the rehabilitation project, you will need to submit a "Certification of Completed Work" to the SHPO. This certification should include documentation that demonstrates your compliance with the approved work plan, along with before-and-after photographs of the property.
8. Await Final Approval and Receive Tax Credit
Once the SHPO reviews your submitted documentation and certifies the completed work, they will provide you with a final approval letter. You can then proceed to claim your tax credit when filing your state income tax return. Ensure all necessary documentation is attached to avoid any issues with claims.
Final Thoughts
Applying for Utah’s Historic Preservation Tax Credit can be a straightforward process if you follow the necessary steps and adhere to guidelines. By carefully preparing your application and documentation, you can significantly offset rehabilitation costs and contribute to preserving Utah's rich historical legacy.