taxes

Tax Credit for Certified Rehabilitation of Certified Historic Structures

Texas law allows a tax credit for up to 25 percent of eligible costs and expenses relating to the certified rehabilitation of certified historic structures. This credit is available for franchise tax reports originally due on or after Jan. 1, 2015 and for annual insurance premium tax reports originally due on or after Jan. 1, 2018. The credit can only be used for insurance premium taxes due under Texas Insurance Code, Chapters 221, 222, 223, or 224.

All historic structure credit information is confidential. Only the credit owner may request a copy of the credit certificate. The credit owner may provide a power of attorney to designate another party to receive a copy of the certificate.

Qualifying for the Credit

To qualify for the credit, you must meet these requirements:

• the structure must be placed in service on or after Sept. 1, 2013;
• the entity that establishes the credit must have an ownership interest in the structure during the calendar year the structure was placed in service after the rehabilitation; and
• the total amount of eligible costs and expenses incurred by the entity that establishes the credit must exceed $5,000.

To establish the credit, follow these steps:

Establishing the Credit

1. Contact the Texas Historical Commission (THC) for information about how to certify the rehabilitation of a certified historic structure. The Texas Historical Commission will assist you with obtaining a Certificate of Eligibility.
2. Contact a certified public accountant to obtain an audited cost report that itemizes the eligible costs and expenses the entity incurred in the certified rehabilitation of the certified historic structure.
3. Mail the following documents to the Texas Comptroller of Public Accounts, P.O. Box 149348, Austin, TX, 78714-9348:
   • A completed Form AP-235, Texas Historic Structure Credit Registration (PDF)
   • The Certificate of Eligibility issued by the Texas Historical Commission
   • An audited cost report completed by a certified public accountant
     
     The Comptroller’s office will review your documents within four weeks of receiving all required documentation. Upon approval, the Comptroller’s office will mail Form 05-901, Historic Structure Credit Certificate, to you. The Historic Structure Credit Certificate is proof that you have established a historic structure credit and indicates the amount of credit established.

Additional Resources

• Franchise Tax
• Texas Historical Commission