Historic Preservation Tax Credit (HPTC)

Overview

The Historic Preservation Tax Credit (HPTC) provides tax credits to qualified taxpayers who will be completing the restoration of a qualified historic structure into an-income producing property. All projects must include a qualified rehabilitation plan that is approved by the Pennsylvania Historical and Museum Commission (PHMC) as being consistent with the standards for rehabilitation of historic buildings as adopted by the United States Secretary of the Interior.

Uses

Tax credits may be applied against the tax liability of a qualified taxpayer which includes an individual, corporation, business trust, limited liability company, limited liability partnership or any other form of legal business entity. The tax credits awarded to a qualified taxpayer shall not exceed 25 percent of the qualified expenditures as determined by the application in connection with the completed project. Tax credit awards can be increased to 30 percent of the qualified expenditures in connection with a workforce housing completed project. The total tax credits awarded to a qualified taxpayer may not exceed $500,000 in any fiscal year.

Eligibility

Those eligible to apply are qualified taxpayers which include an individual, corporation, business trust, limited liability company, limited liability partnership or any other form of legal business entity. Qualified taxpayers must be subject to the Personal Income Tax, Corporate Net Income Tax, Capital Stock-Franchise Tax, Bank and Trust Company Shares Tax, Title Insurance Companies Shares Tax, Insurance Premiums Tax, Gross Receipts Tax, or Mutual Thrift Institutions Tax.

Funding

The commonwealth shall issue no more than $ 5,000,000 in tax credits per fiscal year. Credits will be awarded equitably for projects in each region of the commonwealth.

How to Apply

Qualified taxpayers will apply through DCED’s electronic Single Application system. Applicants will also be required to submit supporting documents to complete the application. Supporting documents include: photographs of the building and its surroundings, a map showing the boundaries of the historic district and the location of the building and a statement of historic and architectural significance. All applications will be reviewed on a first-come, first-served basis by date received.

Application Fee:

This application requires a $100 application fee to be paid via hard copy check upon submitting the application.

Please make checks payable to: Commonwealth of Pennsylvania and indicate HPTC application fee in the memo and send to:

Historic Preservation Tax Credit Assignment Application

Historic Preservation Tax Credits may be applied against the tax liability imposed on a taxpayer including Personal Income Tax, Corporate Net Income Tax, Capital Stock-Franchise Tax, Bank and Trust Company Shares Tax, Title Insurance Companies Shares Tax, Insurance Premiums Tax, Gross Receipts Tax or Mutual Thrift Institution Tax.