Homeowner Historic Tax Credit
Tax Credits for Historic Homes
Owners of historic residences in Wisconsin may be eligible for income tax credits that can help pay for their home's rehabilitation. The Homeowners' Tax Credit program returns 25 percent of approved rehabilitation expenses for eligible historic homes as a state income tax credit. The Wisconsin Historical Society's State Historic Preservation Office administers this program.
How the Program Works
Wisconsin homeowners apply for the program by submitting a tax credit application. The work must receive approval before you begin your project. If your project is approved and completed, the tax credits are applied and your project is closed.
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Make Sure Your House is a Historic Building
To qualify for the program, your personal residence must be one of the following before beginning any work:
- Listed in the National Register or State Register of Historic Places
- Contributing to a National Register or State Register historic district
- Be determined eligible for an individual listing in the State Register of Historic Places through the Homeowner's Preservation Tax Credit program.
For staff to make this determination, you need to submit Part 1 of the tax credit application, photographs, and information to indicate that your property meets the criteria of the National Register or State Register of Historic Places.
To find out if your building is already listed in the National Register or State Register of Historic Places, you can conduct a property record search of the Architecture and History Inventory. You can search for your address, use the various filters on the left side of the search to help narrow your search, or try the Historic Properties section of Advanced Search. If your property appears, check the record for its National Register or State Register status.
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Submit Tax Credit Part 1 and 2 Applications Before You Begin Work
We have created detailed instructions for completing and submitting the Part 1 and Part 2 application forms and photos. We encourage applicants to read through the program materials before you submit to ensure you will have a complete application and avoid review delays.
Wisconsin statutes define five categories of work eligible for the tax credit:
- Exterior of your house, such as roof replacement and painting, but not site work such as driveways and landscaping
- Interior of a window sash (if work is done to the exterior of the window sash)
- Structural elements of a historic property, such as reinforcing structural beams
- Heating and ventilating systems, such as furnaces, air conditioning, and water heaters
- Electrical wiring or plumbing systems, but not electrical or plumbing fixtures
You must determine how much you will spend within a two-year period:
- A homeowner must spend between $10,000 and $40,000 on eligible work within a two-year period and submit the tax credit application before beginning any work.
- If you think you will not meet the $10,000 minimum investment requirement within the two-year period, you may request a five-year phased plan by submitting the request form with your Part 2 application form. (You must decide this before you fill out the tax credit application.)
- The tax credit is maximized once the eligible expenses reach $40,000 per application. If you have more than $40,000 in eligible work, you must submit multiple applications for review and break your costs across the applications.
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SHPO Reviews the Application
SHPO staff will review the Part 1 application to certify that your property is historic and review the Part 2 application to make sure the work you are proposing will not have a harmful effect on the house's materials and historic features.
Projects are generally reviewed within 30 days of receipt of a completed package. However, during construction season, we receive many homeowner applications which can result in longer wait times. An incomplete application may also delay your review. We advise you to send your application as soon as you have all your project information and up to two months before work will begin to ensure that our reviewers can consult with you. You will receive notification when your Part 2 application is approved. We may be able to expedite review under some circumstances. Please let us know if you need urgent approval for emergency repairs.
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Once Your Project is Approved, Carry Out the Work on Your Home
After your Part 1 and 2 applications are approved, you can begin the work on your building and take the tax credit year-by-year, based on 25 percent of the total costs of eligible work.
If your project changes, you may need to submit a Part 2 Amendment form for approval. Please read the instructions for more information about amending your project.
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Submit a Part 3 Application When Your Project Is Complete
When you have completed work on your entire project, submit a Part 3 application form including details of your project's final costs and photos clearly showing the work you completed.
Staff will review the Part 3 application and photos to determine if your project followed program requirements. We will send an approval letter stating that your project is closed and complete.
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
Application Forms and Instructions
We encourage applicants to read the instructions and forms thoroughly before you begin your application. Because this is both a historic preservation program and a tax credit program, applicants should consult Wisconsin Department of Revenue rules and guidelines.
FAQs
Find answers to frequently asked questions about the tax credit program for owners of historic homes.
General Questions
The historic homeowners' tax credit is a dollar-for-dollar reduction in what you owe in Wisconsin income taxes. The amount of the credit is 25 percent of your costs of carrying out eligible work. If your credit is larger than the amount that you owe in state income taxes, you can carry the unused credit balance into future tax years (up to 15 years into the future) until the credit is used.
Homeowners apply by submitting a tax credit application. Once approved, the work is carried out, tax credits are applied, and then your project is closed. Please review our detailed steps.
NOTE: You have two years to carry out eligible work that exceeds $10,000. If at the beginning of the project you think you will have trouble meeting that requirement, you can apply for a five year project period when you submit your application using the "Request for Five-Year Project Phasing" form with your application. The statutes require that you send this form when you first apply. Otherwise, your project cannot go beyond the standard two-year period.
Wisconsin statutes define five categories of work eligible for the tax credit:
- The exterior of a historic property
- The interior of a window sash (if work is done to the exterior of the window sash)
- Structural elements of a historic property
- Heating and ventilating systems
- Electrical or plumbing systems, but not electrical or plumbing fixtures
The Wisconsin Historical Society has very limited authority to determine whether work is, or is not, eligible. The ultimate authority is with the Wisconsin Department of Revenue. You should treat this like any other item on your income taxes — claim what you feel are legitimate, eligible expenses and be prepared to support your claims.
A project includes all of the work that you list in the application. For example, your application might include roof work, painting, and a new furnace. These items would comprise a "project."
No. This is an income tax credit. It does not affect property taxes.
Rehabilitation costs paid for with insurance proceeds or reimbursements are generally not considered to be paid for by the taxpayer. According to the Wisconsin Department of Revenue, only rehabilitation costs paid for by the taxpayer are eligible for the credit. For example, if you collect money from your insurance company to replace a hail-damaged roof, you cannot use the insurance money to install a new roof and also claim the tax credit for your roof expenses. For questions, applicants should consult a qualified tax preparer.
Applying
Projects are usually approved within 30 days. However, we encourage property owners to send their applications up to two months in advance of your project start date to ensure that your work is approved before you begin. During high volume application periods, reviews may take longer than 30 days. Under some circumstances, we may be able to expedite the review for an emergency repair.
No. Although formal bids are the most desirable, sometimes applicants have to use a "best guess," particularly for work that is to take place in future years.
No. At the end of the project you send us a single dollar figure representing the total cost of your eligible work. Keep the financial records in your files for Department of Revenue review if necessary.
The State Historic Preservation Office must review the entire project, including work that is not eligible, in order to evaluate the historic significance of your house throughout your project. Ineligible work must be listed and described in the application. The tax credit, which is a public subsidy, must be used for work that benefits, not detracts from, the historical significance of your house. If, for example, you wanted tax credits to repair your roof but planned a large addition on the front of your house, the historical significance of your house may be diminished and the tax credits would not have been used as intended: to promote exemplary preservation work. For this reason, we need to examine the whole project.
Projects may be amended to include new work.
Yes, but you must prorate the tax credit by square footage. For example, if 60 percent of the square footage of your house is used as your residence, you may apply for the homeowners' tax credit and multiply it by 60 percent. As a rough example, if you spent $20,000 on eligible work, you would be able to claim $3,000 in tax credits ($20,000 times 25 percent times 60 percent).
Yes. Please submit multiple applications simultaneously if your project will include more than $40,000 of eligible work. If you have a project that exceeds an estimate of $40,000 in eligible work, you should break down the eligible work items and distribute them across multiple applications with the work on each application totaling between $10,000 (the minimum required amount of eligible work) and $40,000. The applications should be submitted together so that State Historic Preservation Office staff can review the project as a whole and ensure that all proposed work meets the program guidelines. The Wisconsin Department of Revenue recognizes this interpretation as valid.
No. We do not give advice about your individual tax situation. Please contact a tax attorney, accountant, or the Wisconsin Department of Revenue.
Claiming the Tax Credit
No, you can take the tax credit year-by-year, based on 25 percent of your eligible costs during the year. Please remember that if you do not spend the required $10,000 within the 2-year time limit (or 5-year limit if you submit a phasing plan), or if the final project results do not meet the program guidelines, you may be obligated to pay back any credit that you have taken.
Differences between estimated and actual construction costs are commonplace and do not require any special action other than reporting the true costs at the end of your project.
Projects Already In-Progress or Already Completed
You can claim tax credit for work that begins after your project is approved. Work done before you submit the application must be listed in the "ineligible" category.
No. The statutes require that work be pre-approved.
Questions about Property Photographs
We need overall photographs:
- To determine whether your house is historic
- To compare the "before" and "after" work that you are proposing
- To have a record of your house in the event that additional work is carried out during the 5-year recapture period
No. The photographs become part of a public record.
Request for Five-Year Project Phasing
If you think that your project may go beyond the 2-year limit, you should consider phasing it. Phasing is easy and cost-free. You can close-out your project at any time and there are no penalties for not carrying out work that you have included with your application, provided that you have met the $10,000 minimum expenditure on eligible work.
No. The statutes require that you submit a phasing plan at the time that you submit Part 2 of the application. Unless you've done that, you are limited to a two-year expenditure period. Please note that, the two-year "clock" doesn't start until the work actually begins. For example, if your project was approved on June 1, 2021, but the contractor didn't show up until August, 2021, you would have until August 2023 to complete the project. If you are nearing the end of your 2-year expenditure period, there is another possible resolution. If you have more than $10,000 of eligible work remaining, you can close out your existing project and submit a new tax credit application for a second project.
No. Send a Request for Certification of Completed Work for the whole project, along with completion photos after all of the work is done. If you send a Request for Certification of Completed Work before your whole project is complete, it will close out your project, making it impossible for you to claim the costs of any remaining work.
State or National Register of Historic Places
You can use our website to check if your property is listed by conducting an online search for your property in the Architecture and History Inventory.
Yes, you can qualify if Society staff can determine your house eligible for listing in the State Register or National Register of Historic Places. To make this determination (called a "preliminary certification"), you need to send in Part 1 of the tax credit application, photographs, and information to indicate that your property meets listing criteria of the State Register or National Register of Historic Places, which are given in the tax credit application package.
NOTE: If successful, this process only qualifies you for the tax credit. It does list your property in the State Register or National Register of Historic Places. If you want to list your house in the registers, you must submit a formal nomination to the State Register or National Register of Historic Places.
Your house can qualify if it is already listed in the State Register or National Register of Historic Places or if it contributes to a State Register or National Register historic district. If it is submitted as a "preliminary certification" through the process described above, you must demonstrate that it meets State Register listing criteria before the project begins. If it does not meet the criteria beforehand, it cannot qualify, even if your plans call for restoring it to its historic appearance.
Every project needs Part 1 of the application to ensure that the property is still historically significant. Some historic districts, for example, were created nearly 30 years ago. Over that time, some properties have been altered and no longer contribute to the historical significance of their districts. This is true for districts and properties listed in the State Register and National Register of Historic Places. Society staff will review the application and accompanying photographs to determine whether properties are still historic.
