This week, representatives from the National Park Service and the Louisiana Office of Historic Preservation visited downtown Shreveport. Why is that a big deal…..because these are the people who approve the federal and state tax credits for buildings undergoing restoration. The credits can make the difference between making a project work or not. Developers are already taking risks by investing in older buildings, so they always look to find ways to make the project financially viable.
At one time, Shreveport was like New Orleans in the number of historic properties found in the Downtown Development District. Because Shreveport did not have a demolition delay or an historic preservation committee and ordinance in place, many buildings were demolished for a variety of reasons. Long-neglected properties, whose owners were not even in Shreveport, were left to decay in place. Sometimes owners could not even find keys to show their properties to interested developers. For information on the federal credit, visit:
The State Commercial Tax Credit Program was created in 2002 by the Louisiana Legislature to encourage redevelopment in Downtown Development Districts. The enabling legislation was amended to allow historic properties located in certified Cultural Districts to be eligible for the credit. The Legislature further expanded the program in 2023 to include National Register-listed buildings.
To be eligible for the State Historic Tax Credit program, the building must be income-producing, have a rehabilitation project that exceeds $10,000 in qualified rehabilitation expenses and be completed according to the guidelines by the Secretary of the Interior’s Standards for Rehabilitation. Both federal and state programs are jointly administered by the Louisiana Division of Historic Preservation and the Louisiana Department of Revenue.
The building must be in a Downtown Development District or certified Cultural District and be a contributing element to the district.
The State Commercial Part 2 applications received by the Department of Culture, Recreation, and Tourism on or after January 1, 2021, have to reserve the anticipated credit through the state database. The maximum aggregate total of tax credits reserved must not exceed $125 million annually. The Louisiana State Commercial Tax Credit will sunset December 31, 2028. The maximum credit that can be received is 25% for expenses occurred after January 1, 2023. The DDA recommends that Parts 1 and 2 be sent in together. We can help assist with the application and process. If you are planning a renovation project for your downtown property, give us a call at 318-222-7403. We will walk you through the entire process. To learn more about the State Commercial Tax Credit Program or the Federal Tax Credit Program, https://www.crt.state.la.us/cultural-development/historic-preservation/tax-incentives/state-commercial-tax-credit/index.
