The State Historic Preservation Tax Credit Program provides a state income tax credit for the sensitive, substantial rehabilitation of historic buildings. It ensures character-defining features and spaces of buildings are retained and helps revitalize surrounding neighborhoods. The program provides an income tax credit of up to 25% of qualified rehabilitation expenditures (QREs).
Upcoming Registration Round
The Iowa Economic Development Authority (IEDA) administers the program in consultation with SHPO. IEDA accepts funding applications, referred to as a registration round during set periods during the year as listed on their website.
Application Process
The State of Iowa historic tax credit program consists of six mandatory steps:
- Part 1 - Evaluates the building’s integrity and significance and project eligibility (submit in ESHPO).
- Part 1.5 Pre-Application Meeting – Offers feedback that will enable you to prepare better applications for the Part 2 submittal (schedule in online scheduler).
- Part 2 - Evaluates that the proposed rehabilitation work meets The Secretary of the Interior’s Standards for Rehabilitation (submit in ESHPO).
- Part 2B Registration – Evaluates submitted materials for the project’s planning and financial readiness (submit in iowagrants.gov).
- Agreement - Establishes the terms and conditions that must be met to receive the tax credit and establishes the estimated amount of the tax credit.
- Part 3 - Evaluates that the completed work has met The Secretary of the Interior’s Standards for Rehabilitation and that all other requirements of the agreement, laws, and regulations have been met (submit in iowagrants.gov).
Forms associated with these application parts may be found here.
Review Process
The State Historic Preservation Office of Iowa (SHPO) has a 90-day review period from the date a complete application for each Part is received. However, the 90-day period is not binding. For incomplete applications, the review will be placed on hold until all information is provided. At the time all requested information is received, the 90-day review period will restart. The application may be denied if any requested information is not provided. Parts 2 and 3 reviews will not start until payment of the review fee has been received.
Additionally, if the completed rehabilitation work does not meet The Secretary of the Interior’s Standards for Rehabilitation as determined by the State Historic Preservation Office, or if the applicant does not otherwise comply with the terms of the agreement, law, or regulations, tax credits will not be awarded. Awarded credits may also be subject to recapture as described in Iowa Code.
Questions may be emailed to shpotaxcredit@iowaeda.com.