Historic Commercial Tax Credit
Tax Credits for Income Producing Historic Buildings
Owners of historic income-producing properties in Wisconsin may be eligible for a federal income tax credit and a state income tax credit that can help pay for a building's rehabilitation.
The Federal Historic Preservation Tax Credit Program
This program returns 20 percent of the cost of rehabilitating historic buildings to owners as a federal income tax credit.
The Wisconsin Historic Preservation Tax Credit Program
This program returns 20 percent of the cost of rehabilitating historic buildings, up to $3.5 million per parcel, to owners as a Wisconsin income tax credit.
How to Qualify for Federal and State Historic Preservation Credits
This is a summary and is not intended to cover all program rules and guidelines. Additional information on the federal credit can be obtained through the National Park Service.
While the goal of the program is to preserve significant buildings, it is also an income tax program. Applicants must meet IRS and Wisconsin Department of Revenue requirements. Before you apply, we suggest you talk to your accountant to see if the program will work for you.
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Own a Historic Building
A building must be determined historic and income-producing to be eligible for federal and/or state tax credits.
A building is considered "historic" if it is listed in the National Register of Historic Places or if it is determined that it contributes to the character of a National Register historic district. A building can also receive a preliminary determination of eligibility for the Register through the tax credit application process. In this case, the owner must formally list the property in the National Register prior to claiming any tax credits.
A building is considered income-producing if it is used in a trade or business or for rental income.
Prior to submitting an application and initiating a project, you should consult with SHPO staff. Depending on the complexity of your project, they may want to tour the building to determine if the proposed work could meet the Secretary of the Interior's Standards for Rehabilitation.
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Apply to the State Historic Preservation Office (SHPO)
Applications are first submitted to the SHPO for review. SHPO will submit our review and recommendations to the NPS for review and approval. NPS may stipulate conditions for the materials and methods that must be followed to meet the Secretary of the Interior's Standards for Rehabilitation.
For projects pursuing the state tax credit, SHPO will forward the approved Part 2 application to WEDC who will then instruct the applicant on the processes and forms for WEDC tax credit approval.
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Rehabilitate the Building Following Program Standards and Conditions
Perform all work in compliance with the Secretary of Interior's Standards for Rehabilitation and the conditions set by the SHPO and NPS review staff.
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Spend the Minimum Amount Required on Rehabilitation
For projects applying for the federal credit, the total cost of qualified rehabilitation expenditures must be equal to the building’s adjusted basis value and equal to at least $50,000 in qualifying expenditures. It is the applicant's responsibility to determine if the project will meet the required investment minimum. Helpful guidance may be found on the IRS website in the Rehabilitation Credit FAQ and in IRS Publication 551 Basis of Assets.
For applicants who are only using the state credit, the project must have at least $50,000 in qualifying preservation expenditures.
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Claim the Credit for Eligible Expenses Only
The SHPO and NPS will help applicants understand what project costs are eligible for the rehabilitation credit. The cost of all work on the historic buildings, inside and out, is eligible for the credit with the exception of moveable equipment. The cost of site work, such as landscaping or paving, and the cost of new construction (such as new additions) are not eligible expenses.
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Maintain Ownership of the Building and the Building's Historic Character for Five Years
Once the completed work is approved, the owner may claim 20% of the total credit per year for five years. If the building is sold or altered within within placing the building into service, the federal tax credit must be repaid to the IRS and the state credit to the Wisconsin Department of Revenue (DOR). Repayment is prorated over the five-year period after the building is placed in service.
The Register of Historic Places
The National Register of Historic Places is the Nation's official list of historic places worthy of preservation. The register is maintained by the National Park Service in the U.S. Department of the Interior.
The State Register is Wisconsin's official list of state properties determined to be significant to Wisconsin's heritage. The State Historic Preservation Office at the Wisconsin Historical Society administers both the National Register and State Register in Wisconsin.
Search Registers
How to Apply for the Federal AND State Credit Programs
Application Forms and Instructions for Using Federal and State Tax Credits
We strongly recommend you read through the guidelines, instructions, and forms before beginning your application.
Digital Application Instructions
- Complete the NPS forms: Applicants must follow the detailed instructions provided on the NPS website. NPS has created digital file naming conventions for organizing your digital application files. If the files submitted to SHPO do not meet NPS digital specifications, SHPO will return the application for correction. Questions about the NPS application forms may be addressed to [email protected].
- Create a MyWisconsin ID: If you do not already have a MyWisconsin ID account, please create one by following the instructions on this website. The Wisconsin Historical Society is using Wisconsin’s AccessGov website and MyWisconsin ID to securely collect the sensitive information contained in your application. You do not have to be a Wisconsin resident to create an account. If you have any problems setting up your MyWisconsin ID account, please contact us by filling out this form and include "MyWisconsin ID" in the comment box.
- Log in to the SHPO application form: Use your MyWisconsin ID to log in to the application form and follow the instructions to upload your files. There is a 40MB file size limit per PDF file that you upload. If you have any problems completing the form or need to submit a PDF larger than 40 MB, please contact Tax Credits (Email below).
- Watch for email receipt: SHPO staff will email you to acknowledge receipt of your application documents. We will then check the application for completeness. If there are missing or incomplete documents, or errors, the application will be returned for correction. Project review will not begin until the SHPO reviewer determines the application is complete and meets NPS application standards.
- Submit JPEG images to SHPO: After accepting your application PDFs, SHPO staff will email instructions for how to separately submit JPEG files of the images for SHPO records in the Wisconsin Historic Preservation Database.
- SHPO forwards application to NPS: Upon completion of the SHPO review, the reviewer will upload the application documents to the NPS site and notify you by email that the application has been transmitted.
- NPS notification: NPS staff will email a notification to the applicant when the application has been retrieved by NPS.
How to Apply for ONLY State Tax Credits
Some applicants choose to only apply for the state tax credit program. Applicants submit state-only application forms to the SHPO for review. You do not have to complete NPS forms or apply for NPS review. The SHPO forwards approved applications to the Wisconsin Economic Development Corporation (WEDC) who guides the applicant through that agency's application steps.
