Historic Tax Credits – Second of a Three-Part Series

By Abby Hood, CPA

Iowa Historic Tax Credits: How does the program work?

As noted in the previous Historic Tax Credits (HTC) blog, historic structures/features have captivated me since I was a child and I’ve been able to bring that passion to my “9-5” through the HTC program. The HTC program allows entities to receive an indirect subsidy to assist in financing the rehabilitation of historic structures through a tax credit for qualified expenditures. The federal tax credits are usually 20% of qualified expenditures and the Iowa tax credits are 25% of qualified expenditures. The process and tax credit amount vary from state to state with majority closely mirroring the federal tax program.

For Iowa, any project with qualified expenditures greater than $750,000 are only accepted during the registration filing window (once or twice a year) and projects with qualified expenditures less than $750,000 are accepted year-round (I’ll address what is considered a qualified expenditure in part three of the HTC series).

Below is a high-level summary of the HTC program process for the state of Iowa:

Next up in the final part of the Historic Tax Credit series are details on what is considered as a Historic Tax Credit qualified rehabilitation expenditure.

Abby Hood, CPA | Manager