Owners of private properties or properties in neighborhoods listed in the State Register of Cultural Properties are eligible for a state income tax credit against expenses of restoration, rehabilitation, or preservation projects that have been approved by the Cultural Properties Review Committee. The credit is 50% of approved eligible expenditures, up to a maximum credit of $25,000 per project over 5 years. Approval must be granted prior to the start of the work. Income-producing and private residential properties, as well as archaeological sites are eligible for the credit. (NOTE: Not all properties in the neighborhood qualify as historic residences.)
HOW TO APPLY FOR HISTORIC TAX CREDITS
1) Is your house in a designated historic district, or has it been designated as historic in a stand-alone fashion? This question can be answered by contacting Ed Boles, City of Albuquerque Zoning Department, Historic Preservation Division. His number is 924-3342.
2) If Ed Boles says that your house meets the above criteria, ask him for a copy of the one page “Form 1: Buildings and Structures” which was used to describe your house at the time of historic designation. Also ask for a copy of the photograph taken at the time of designation. You will need to include both of these with your Part I submittal to the State Historic Preservation Department.
3) From now on you will be working with State staff and the Cultural Properties Review Committee. Harvey Kaplan (505 827-3971) will answer questions and guide you in this process.
4) Complete Part I of the packet which you can down load from the State or request from Harvey Kaplan). Be sure to include “before” photos and clear descriptions of what you wish to do. Send your packet toHarvey Kaplan/Department of Cultural Affairs/Bataan Memorial Building/407 Galisteo St., Suite 236/Santa Fe, NM 8750l.
5) The Cultural Properties Review Committee meets every other month in Santa Fe. Harvey Kaplan will give you the deadline for submittal and the date of the Committee meeting. You do not have to be present at the meeting.
6) Harvey Kaplan will notify you by mail if your application has been approved. If you’re really eager to get started, you can reach him by phone right after the meeting, and he’ll let you know if your application was approved.
7) DO NOT start any of the work prior to approval by the Committee. If you do, you will not get the tax credit.
8) After you are approved, and after you do the work submit Part II of the application to Harvey Kaplan (see address above). You will receive a lovely letter with a State gold seal telling you how much of a credit you have. Generally, it’s about half of what you spent on the approved work. You may use this state tax credit for up to 5 years!
Items eligible for state tax credits may include:
New roof, plumbing, electrical, re-stucco, exterior paint, restoration of historic features such as doors, windows, and many other areas.
Items not eligible for state tax credits include new additions, any changes in historic style of doors, windows, trim, grade, and new buildings.
Please consult Harvey Kaplan prior to making your application to make sure your plans are in line with State guidelines.
Never expect to get a tax credit if you do the work first and apply for the credits later. The State makes no exceptions.
This may seem daunting, but we’ve found it quite easy. And when you get a great big tax credit, you’ll be glad you did the work.