HISTORIC PRESERVATION TAX INCENTIVES

The Louisiana Division of Historic Preservation administers the Federal Rehabilitation Tax Credit in conjunction with the National Park Service (NPS) and Internal Revenue Service (IRS) and two State tax credits in conjunction with the Louisiana Department of Revenue (LDR). The purpose of tax credits is to encourage the preservation of historic buildings through incentives to support rehabilitation of historic and older buildings. Since the inception of the Federal Rehabilitation Tax Credit, Louisiana has been a leader in certified tax credit projects, generating over $2 billion in private reinvestment in Louisiana communities. The State Commercial Tax Credit has leveraged more than $350 million in private reinvestment in Louisiana Downtown Development Districts and Cultural Districts.

What is a tax credit?

A tax credit is a direct, dollar for dollar, reduction in the amount of money a taxpayer must pay in taxes for a given year. For example, if a taxpayer owes $5,000 in taxes to the Internal Revenue Service, but has a $3,000 credit, he only pays $2,000. Thus he pockets the $3,000 he would otherwise have to pay in taxes. A credit is much better than a deduction which merely reduces a taxpayer’s income and puts him in a lower tax bracket.

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