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The 20% State Commercial Tax Credit was created in 2002 by the Louisiana Legislature to encourage the redevelopment of income-producing historic buildings in Louisiana's Downtown Development Districts. In 2007, the enabling program legislation was amended to allow historic buildings located in certified Cultural Districts to be program-eligible.
The 20% State Commercial Tax Credit Program is jointly administered by the Louisiana Division of Historic Preservation and the Louisiana Department of Revenue. The Louisiana Division of Historic Preservation acts as an applicant's first point of contact and reviews applications for compliance with the Secretary of the Interior's Standards for Rehabilitation; the Louisiana Department of Revenue reviews project costs. The credit is available for those income-producing buildings that are contributing elements to Downtown Development Districts or certified Cultural Districts.
Rehabilitation projects must exceed $10,000 in qualified rehabilitation expenses and must be completed according to the Secretary of the Interior's Standards for Rehabilitation. Once earned, credits are fully transferable and may be carried forward for up to five years.
The State Commercial Tax Credit program sunset date has been extended through December 31, 2025. For State Commercial Part 2 applications received by the Department of Culture, Recreation and Tourism on or after January 1, 2021, the maximum aggregate total of tax credits reserved shall not exceed $125 million annually.
The credit was equal to 25% of eligible costs and expenses incurred through December 31, 2017; the credit is 20% for eligible costs and expenses incurred January 1, 2018 or later, regardless of the year in which the property is placed in service.
State Commercial Historic Tax Credit Program Guidelines and Application Instructions
If you're interested in applying for the State Commercial Tax Credit Program, start here! This booklet contains program guidelines and application instructions, frequently asked questions, information on reserving your historic tax credit, and timelines for the application and approval process.
Tax Credit Reservation Guidance, Form Instructions, and Reservation Form
For State Commercial Part 2 applications received by the Department on or after January 1, 2021, the maximum aggregate total of tax credit reserved in limited to $125 million annually. You are required to submit a Tax Credit Reservation Form in order to reserve your historic tax credit. The Louisiana Department of Revenue may adopt rules or issue guidance prohibiting the issuance of credit in excess of a reservation amount. For the current available amount of available reservations, please click here.
State Commercial Tax Credit Application Forms and Fee Payment Information
These downloadable, fillable PDF forms work best with Adobe Acrobat Reader 10 and above. DO NOT open the forms in a browser tab or window. DOWNLOAD the forms and SAVE them to your computer. To download and save, right-click on the link and chose "Save Link As..." Open the forms in the Adobe Acrobat Reader.
1. Part 1 - Certification of Contributing Status
2. Part 2 - Proposed Work Description
3. Part 3 - Request for Project Certification
The Secretary of the Interior's Standards for Rehabilitation
The Secretary of the Interior's Standards for Rehabilitation provides a list of ten guidelines that must be met when rehabilitating a historic property for its new, modern use. These Standards must be considered when planning a project that may be eligible for historic rehabilitation tax credits.
Are you interested in seeing if your historic building is located in a certified Cultural District? Check out the Tax Incentives Map and look for the districts designated in pink.
Louisiana Department of Revenue
The Louisiana Department of Revenue provides information on the financial implications of using the 20% State Commercial Tax Credit Program. LDR has issued a wealth of guidance on buildings that are considered qualified for the program and also on how to properly prepare audit information. A private letter ruling is a written statement issued by the Louisiana Department of Revenue to a taxpayer applying principles of law to the taxpayer's specific set of facts. This type of policy statement is issued only if there is no other guidance that addresses the correct application of the legal principles to the taxpayer's particular situation. LDR has issued a number of private letter rulings on previous historic tax credit issues.PLR 08-023 Credit for the Rehabilitation of Historic Structures in Downtown Development Districts
PLR 08-017 Historic Rehabilitation Credit
PLR 07-017 Credit for the Rehabilitation of Historic Structures in Downtown Development Districts
PLR 06-001 Historic Rehabilitation Tax Credit Earned by a Downtown Development District
Revenue Information Bulletins
Revenue information bulletins are issued by the Department of Revenue to clarify internal procedures and to clarify laws. LDR has issued two Revenue Information Bulletins on the financial record keeping that must be submitted to their office in order for an applicant to access the 20% State Commercial Tax Credit.Stacking the Federal and State Commercial Tax Credit Programs
Some projects may be eligible for both the Federal and State Commercial Rehabilitation Tax Credit programs. The most stringent program requirements must be met to qualify for both tax credits. This booklet offers guidance on using both the Federal and State Commercial Tax Credit programs.
Contact Information
Phone (225) 342-8160
Fax (225) 219-9772
Mailing Address: Tax Incentives Staff, Division of Historic Preservation
P.O. Box 44247
Baton Rouge, LA 70804
Overnight Mail: Tax Incentives Staff, Division of Historic Preservation
4th Floor, 1051 N. Third Street
Baton Rouge, LA 70802
