The rehabilitation of certified historic structures in service are eligible for the state’s new historic tax credit. This will make Corsicana’s historic district the new/old prime real estate opportunity.
Governor Rick Perry signed the law in 2013 that provides a tax credit equal to 25 percent of eligible costs and expenses incurred in a certified rehabilitation that totals more than $5,000. The tax credit may be applied against franchise tax obligations and these historic tax credits can be transferred multiple times. Entities can also use the tax credits a little at a time. Unused tax credits can be carried forward up to five consecutive franchise tax reports.
Certified historic structures include landmarks listed individually in the National Register of Historic Places, recorded Texas Historic Landmarks, state archeological landmarks, or properties which contribute to historic districts.
The Texas Historical Commission and the Texas Comptroller of Public Arts will adopt the rules necessary to implement the new tax credit. Entities that pay Texas franchise taxes can claim the credit by first applying to the Historical Commission to certify their rehabilitation. The entity may then present their Historic Commission certificate to the comptroller along with an audited cost report on the work. A state sales tax exemption on labor is also available for work to buildings listed in the National Register of Historic Places.