Homeowners Tax Credit Program
ABC Streets Neighborhood homeowners planning new projects for their owner-occupied residential property should take advantage of an available state tax credit program.
The New York State Historic Homeowners Tax Credit Program provides a credit off your NYS income tax worth 20% of qualifying repair and rehab expenses, up to a credit value of $50,000 per year. Exterior and interior work is eligible as long as the work does not significantly change your house’s overall historic appearance. The value of the credit will be applied to your NYS tax liability and reduce the amount you owe.
The tax credit is available because our ABC Streets Neighborhood is part of the Park Avenue Historic District placed on the National Register of Historic Places in 2020. The district encompasses about 1600 properties, making it one of the largest historic districts in the state. (For more about the district, click here.)
Program Qualifications
1. You must own and live in the house.
2. If you also have a rental unit in your house, you can apply for tax credit but calculating the qualified expenditures is different than with a single-family home.
3. Homeowners must spend at least $5,000. At least five percent (5%) of total project costs must be on the exterior of the home.
4. Homeowners must complete and submit their application to the New York State Parks, Recreation and Historic Preservation office before doing the work.
5. Qualified expenses include:
Structural systems (e.g., foundations, floor joists, ceiling and attic rafters).
Roofs (e.g., roof coverings, rafters, fascia, soffits, gutters and downspouts).
Interior work (e.g., floors, walls, stairs, ceilings, trim around windows and doors).
Utility systems (e.g., HVAC, electrical and plumbing, fire safety and security systems).
Windows and doors (e.g., glass, frames, shutters, hardware and storm windows).
Exterior walls, cornices, porches and foundations (e.g., siding, dormers, brackets, columns, railings, stairs, window and door trim, concrete or masonry walls and chimneys).
Weatherproofing (e.g., caulking, weather-stripping and some insulation upgrades).
6. Non-qualified expenses include:
Work outside the footprint of the house, such as new additions, landscaping, driveways, fencing, or detached garages.
The full list of what qualifies for tax credits, what doesn’t qualify, instructions on how to apply, and the forms to submit can be found at: https://parks.ny.gov/shpo/tax-credit-programs/ See the section titled: New York State Historic Homeownership Rehabilitation Credit.
If you have questions: contact the state coordinator for our area – Christina Vagvolgyi (518) 268-2217.
Or you can hire the Landmark Society to complete your application for you. Fees are based on the complexity of your proposed tax credit projects. Learn more at: https://landmarksociety.org/oldhousehelp/
Tips from Neighbors Who Applied
“We converted our heating system from a gas-fired boiler/radiator system to a heat pump system, and in a separate project replaced our roof. When I first heard about filing for the tax credit, I anticipated a confusing, messy process. But that was not the case at all. I followed the instructions (see link above). You must understand your project and proposed costs to fill out the ‘Historic Homeownership Rehabilitation Credit Application.’ In addition, you are required to submit ‘before’ pictures, which I found easy to attach to the application. I did need clarification for one of the questions and I called the person in Albany listed as the contact. I anticipated phone tag and hurried responses, but the representative in Albany answered the phone on the third ring, understood what I was asking, and even before I could finish my request interrupted me by saying ‘yes.’ She also volunteered to help with the application if needed and was pleasant and helpful throughout our conversation. Subsequently she processed the application quickly. When it came time to submit the final information after work was done, I completed the form, attached the ‘after’ pictures, and received approval within days. For the initial project, the process took me about 45 minutes on the front end and 30 minutes on the back end. For our second project, it took me about 20 minutes on the front end and 20 minutes on the back end. The agency provides tax credit documents that you use when filing your taxes. Overall, filing for the tax credit was extremely easy process.”
Gary Domenico, Calumet Street
“We used the tax credit program for two home improvement projects we did. We had a roof replaced and since it already had too many layers, we needed to do a complete tear off. We also had both our front and back porches rebuilt. The application process was simple, but you need to take photographs before you begin the process and photos when you complete the project. There is a nominal fee that needs to accompany both sets of paperwork. The approval documentation, which was the Certification of Completed Work for the porches, was given to my CPA and I was able to get the tax credit on my NY state tax return. The submission process is easy and the fee is nominal. I highly recommend the process and the tax credit is very helpful.”
Bonnie Garner, Beverly Street