Tax Credits for Historic Income-Producing Buildings

Frank DeBoth Building, 1887
De Pere, Wisconsin. This building on Main Street is a part of the Main Avenue Historic District. It is an example of a historic income-producing building that qualifies for tax credits. View the property record: AHI 79530
Owners of historic income-producing properties in Wisconsin may be eligible for two income tax credits that can help pay for their 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 the 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.
How to Qualify:
Own a Historic Building
A building is considered "historic" if it is listed in the National Register of Historic Places or if the NPS determines 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.
If an owner is using only the state tax credit, a building is considered "historic" if it is listed in the State Register or the National Register of Historic Places or if it contributes to the character of a listed historic district. A building can also receive a preliminary determination of eligibility for the National Register through the tax credit application process. In this case, the owner must formally list the property in the State Register or the National Register prior to claiming any tax credits.
Use the Building for Income-Producing Purposes
Income-producing buildings are those used in a trade or business or for the production of rental income.
Formally Apply to the State Historic Preservation Office (SHPO)
Prior to submitting application materials, we recommend you contact one of the preservation architects listed below. Depending on the complexity of your project, they may want to tour the building with you to determine if the proposed project meets the Standards. Application materials must be completed and submitted to the SHPO.
Rehabilitate the Building Following Program Standards
All work must comply with the Secretary of Interior's Standards for Rehabilitation.
Spend the Minimum Amount Required on Rehabilitation
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. Projects received by SHPO after November 1, 2024 must meet both requirements. SHPO will only process complete submission packets received by November 1st. Please see the SHPO memo released October 29, 2024. It is the applicant's responsibility to confirm 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.
Claim the Credit for Eligible Expenses Only
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.
Maintain Ownership of the Building and the Building's Historic Character for Five Years
If within five years of the building being placed into service, it is sold or altered in a way that diminishes its historic character, the tax credit must be repaid to the IRS and to the Wisconsin Department of Revenue (DOR). Repayment is prorated over the five-year period after the building is placed in service. Once the completed work is approved, the owner may claim 20% of the total credit per year for five years. This law applies to both the state and federal credits.
Application Forms and Instructions for Using Federal and State Tax Credits
We strongly recommend you read through the guidelines before beginning your application.
Guidelines for Planning Historic Preservation Tax Credit Projects in Wisconsin (PDF, 447 KB) UPDATED October 2024
Guidance on the Per Parcel Cap on Wisconsin Historic Tax Credits (Wis. Stat. 238.17) (PDF, 130 KB)
Federal Historic Preservation Certification Application Forms
The Federal application forms are available to download from the National Park Service. The forms are dated "Rev. 6/2023." Applications received by SHPOs and NPS must be on the new forms. Previous versions will not be accepted. Please read closely and follow the NPS instructions for downloading and completing the forms.
NPS Guidelines and Instructions for Electronic Submission of Certification Applications
NPS Historic Preservation Certification Application Forms Rev. 6/2023
How to Submit the Digital Application to Wisconsin SHPO
- 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 and file standards may be addressed to NPS_TPS@nps.gov.
- 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 help@wisconsinhistory.org.
- 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 application files. There is a file size limit of 40 MB 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 taxcredits@wisconsinhistory.org.
- Watch for email receipt: SHPO staff will email you to acknowledge receipt of your application documents. We will then check your full application for completeness. If there are missing or incomplete documents, or errors, the application will be returned to the applicant 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 application 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 to NPS.
- NPS notification: NPS staff will email a notification to the applicant when the application has been retrieved by NPS.
- Repeat these steps for submitting digital forms for Part 2 and Part 3 reviews and project amendments.
Wisconsin Economic Development Corporation Application Forms
SHPO will send the approved Part 2 application to WEDC. WEDC will then contact the property owner directly to provide them with WEDC application forms and instructions.
Application Forms and Instructions for Using ONLY State Tax Credits
We strongly recommend you read through the guidelines before beginning your application.
Guidelines for Planning Historic Preservation Tax Credit Projects in Wisconsin (PDF, 228 KB)
Guidance on the Per Parcel Cap on Wisconsin Historic Tax Credits (Wis. Stat. 238.17) (PDF, 130 KB)
State Historic Preservation Certification Application (4 parts)
Part 1 - Evaluation of Significance (PDF, 75 KB)
Part 2 - Description of Rehabilitation (PDF, 57 KB)
Part 3 - Request for Certification of Completed Work (PDF, 62 KB)
Amendment Form (PDF, 42 KB)
Wisconsin Economic Development Corporation Application Forms
WEDC will contact the owner and send the application forms directly to Tax Credit applicants after receipt of a signed Part 2 for a project from the SHPO.
If you have questions, please call or email us at the contacts listed below.
Learn More
Tax Credits for Historic Building Rehabilitation
Find more information about tax credits.
Have Questions?
For specific advice about the tax credit program or for advice on other technical historic architecture issues, please refer to the contact information below.
For projects in the eastern part of the state, please contact Paul Porter by phone at 608-264-6491 or paul.porter@wisconsinhistory.org.
For projects in the western part of the state, please contact Andrea Herries at 608-264-6490 or andrea.herries@wisconsinhistory.org.