The certified historic structure credit is available against income tax or corporate license tax for "qualified rehabilitation expenditures" to a "certified historic structure," as those terms are defined in IRC Section 47 and applicable treasury regulations. The credit is available if the expenditures are incurred in taxable years beginning after 2002 and if the property is placed in service after June 30, 2003. A rehabilitation project must meet all requirements for the federal 20% income tax credit under IRC Section 47.
For a period of up to five years, additional work done by the taxpayer must be consistent with the Secretary of the Interior's Standards for Rehabilitation. The State Historic Preservation Officer may review additional work and has the right to inspect. Additional work that the State Historic Preservation Officer deems inconsistent with the Standards for Rehabilitation will result in forfeiture of any unused credit amount, including any amounts carried forward.
The taxpayer may appeal to the State Review Board to review any determination by the State Historic Preservation Officer.
Complete a separate TC-21 for each rehabilitated property. If filing a paper return, attach a copy of the appropriate federal forms showing the amount of federal rehabilitation expenditures claimed. If filing an electronic return, keep a copy of them with your tax records.
Complete TC-22 if claiming a credit for rehabilitation expenses for a certified historic residential structure.