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

“My improvement was painting all of the interior and exterior of my home, which included the partially finished basement. Parts 1 & 2 of the application totaled six pages and were very simple and straight forward. I also provided before pictures. The entire process took about 90 minutes. I submitted Part 3, via an email attachment, and I received a letter back via email the same day, which served to verify the Certification of Completed Work.  I provided the letter to my CPA and took full advantage of the tax credit on my NY state tax return.  It is really a very simple process and well worth the extra time, especially if you are doing improvements of substantial value.”

Janina Guthrie, Beverly 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