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Qualifying for the Credit

Historic Structures Rehabilitation Credit


For income years beginning on or after January 1, 2006, a new tax credit administered by the Connecticut Commission on Culture and Tourism (CCT) is available to owners rehabilitating certified historic structures for residential use. This credit may be applied against the taxes administered under Chapters 207, 208, 209, 210, 211, or 212 of the Connecticut General Statutes. This credit may be assigned.


Owner means any person, firm, limited liability company, nonprofit or for-profit corporation, or other business entity which possesses title to an historic structure and undertakes the rehabilitation of the structure.

Certified historic structure means an historic commercial or industrial property that:

  • Is listed individually on the National or State Register of Historic Places; or

  • Is located in a district listed on the National or State Register of Historic Places and has been certified by CCT as contributing to the historic character of the district.

Qualified rehabilitation expenditures mean any costs incurred for the physical construction involved in the rehabilitation of a certified historic structure for residential use, but excludes:

  • The owner's personal labor;

  • The cost of a new addition, except as may be required to comply with any provision of the State Building Code or the State Fire Safety Code; and

  • Any nonconstruction costs such as architectural fees, legal fees, and financing fees.

Substantial rehabilitation means the qualified rehabilitation expenditures of a certified historic structure that exceed 25% of the assessed value of the structure.

Prior to any rehabilitation work taking place, the owner must submit a rehabilitation plan to CCT along with an estimate of the qualified expenditures. CCT will certify the plan and reserve credits equal to 25% of the projected expenditures, not to exceed $2.7 million. The aggregate amount of tax credits reserved in any fiscal year may not exceed $15 million.

Once the substantially rehabilitated structure is placed in service, CCT verifies the owner's compliance with the rehabilitation plan and issues a credit voucher. In the case of projects completed in phases, the tax credit voucher is prorated to the identifiable portion of the substantially rehabilitated building placed in service.

Credit Percentage

The tax credit is equal to the lesser of the tax credit reserved upon certification of the rehabilitation plan or 25% of the actual qualified rehabilitation expenditures not exceeding $2.7 million.

Carryforward/Carryback Limitations

The credit may be carried forward for five years following the year in which the voucher was issued. No carryback is allowed.

How to Apply

Applications for the tax credit voucher must be made with CCT. Contact CCT at 860-566-3005, Ext. 317 for application information.

Complete Form CT-1120 HRC, Historic Rehabilitation Credit, and attach it to Form CT-1120K, Business Tax Credit Summary, to claim this credit.

Forms are available anytime from the DRS website at www.ct.gov/DRS or by calling the DRS Forms Unit at 1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only) and selecting Option 2 from a touch-tone phone, or 860-297-4753 (from anywhere).

TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911.

Informational Publication 2006(15), Guide to Connecticut Business Tax Credits Issued: 04/24/07


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