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 Tax Exemption programs contribute to the revitalization and preservation of historic properties across the state.
The three programs use the Secretary of the Interior’s 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 Department of Revenue (IDR).
The program has a multi-part certification 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 “substantial rehabilitation” of historic buildings. It includes a 4-year “freeze” on property tax increases, followed by increases of 25% per year for the following four years to adjusted value post rehabilitation.