California Historic Tax Credits

On October 9th, Governor Gavin Newsom signed SB 451, the California Historic Rehabilitation Tax Credit, adding California to the list of more than 35 states that have passed such incentives. The bill, which passed both the Senate and the Assembly with unanimous approval, will enable the renewal of aging structures and communities throughout the state, and promote the development of affordable housing.

State historic rehabilitation tax credits allow a property owner to claim a percentage of their project expenses against state income taxes and are designed to complement the Federal Rehabilitation Tax Credit. These revenue-enhancing programs more than pay for the economic cost of the rehabilitation credit. 

 

SB 451 will:

  • Create a state 20% tax credit for the rehabilitation of historic structures.

  • Include a 5% bonus for certain projects, such as affordable housing.

  • Create construction and building industry jobs.

  • Enhance state tax revenues through increased economic activity, employment, and wages.

  • Increase local revenues through increased property values, sales tax, and heritage tourism.

  • Stimulate the economy and sustainable development.

  • Combine these credits with other tax credits for greater leverage.

  • Revitalize economically depressed areas and reduce blight.

  • Preserve the rich legacies of California communities.

 

Learn more about the impact of Historic Tax Credits, including case examples of success, here.

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