Historic Preservation Tax Credit Program is offered by the Iowa Economic Development Authority (IEDA) and provides a state income tax credit of up to 25% of qualified rehabilitation expenditures (QREs) for the sensitive, substantial rehabilitation of historic buildings in Iowa. Eligible applicants include nonprofits, governments, and for-profit entities.

Buildings must be listed in or eligible for the National Register of Historic Places, or be contributing structures within a listed historic district. Tax credits are transferable and help revitalize surrounding neighborhoods by retaining character-defining features of historic structures.

QREs generally include expenditures related to structural components and certain soft costs, but exclude expenditures financed by federal, state, or local government grants or forgivable loans.

State Historic Preservation Tax Credit Program | Economic Development & Finance Authority State Historic Preservation Tax Credit Program State Historic Preservation Tax Credit Program The State Historic Preservation Tax Credit Program program offers tax credits to developers who sensitively rehabilitate historic buildings to offer them new life.

Iowa offers this tax credit program to ensure character-defining features and spaces of buildings are retained to help create distinct and vibrant communities. 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).

State income tax credit of up to 25% of the qualified rehabilitation expenditures associated with the project “Qualified rehabilitation expenditures” or “QREs” means the same as defined in Section 47 of the Internal Revenue Code QREs generally include expenditures related to structural components of the building and some soft costs that would normally be charged to a capital account QREs do not include expenditures financed by federal, state or local government grants or forgivable loans unless otherwise allowed under Section 47 of the Internal Revenue Code Tax credits are transferable Meets Historical Significance Requirements Although the National Register of Historic Places lists structures, objects, and sites in addition to buildings, this tax credit is only available for buildings.

Building must meet at least one of the following criteria: Building is listed on the National Register of Historic Places or determined by the staff at SHPO to be eligible for listing Building is contributing to the significance of a historic district that is listed on or eligible to be listed on the National Register of Historic Places Building is designated as a local landmark by city or county ordinance Barn constructed before 1937, or a barn listed on or eligible for listing on the National Register of Historic Places View the National Park Service database to find out a building’s National Register of Historic Places status.

Find out information about how to nominate a property to the National Register of Historic Places. HF975, passed by the legislature and signed by Governor Reynolds, revised properties eligible for Historic Preservation Tax credits. Please note that single family housing units will no longer be eligible under this program.

To be considered for tax credits, single family housing projects must have a Part 1 application submitted before July 1, 2025. IEDA will be preparing administrative rules to further clarify this program change.

Meets Substantial Rehabilitation Requirements For commercial buildings: Qualified rehabilitation expenditures must equal at least 50% value of the building (excluding land) before rehabilitation or $50,000, whichever is less For non-commercial buildings: Qualified rehabilitation expenditure must equal at least 25% of the assessed value of the building (excluding land) before rehabilitation or $25,000, whichever is less Rehabilitation must meet the federal Secretary of the Interior’s Standards for Rehabilitation .

Only an eligible taxpayer may apply for the state tax credit An “eligible taxpayer” is defined as the fee simple owner of the property or someone having a long-term lease, which meets the requirements of the federal rehabilitation credit Applicant may be a nonprofit but may not be a governmental body If you are not the fee simple owner or a qualified long-term lessee, you may apply for the tax credit if you meet all of the following qualifications: You qualify for the federal rehabilitation credit allowed under Section 47 of the Internal Revenue Code, and You have notarized, written permission from the fee simple owner indicating the owner is aware of the application and has no objection, and You become the fee simple owner or have a long-term lease which meets the requirements of the federal rehabilitation credit allowed under Section 47 of the Internal Revenue Code prior to entering into an agreement with the Iowa Department of Cultural Affairs List items for State Historic Preservation Tax Credit Program Application Process Reviewed by the State Historic Preservation Office (SHPO) to determine the building’s historic significance and project eligibility; this application is submitted through the state’s ESHPO system.

Part 1. 5 - Pre-Application Meeting The mandatory Part 1.

5: Pre-Application Meeting takes place between the applicant, SHPO and IEDA staff to provide feedback on the Part 2 application submittal and must be scheduled at least 30 days after submitting your Part 1 application by using the online scheduler Application is reviewed by the SHPO to evaluate the proposed scope of work to ensure work meets The Secretary of the Interior’s Standards for Rehabilitation ; this application is submitted through the state’s ESHPO system.

Submissions accepted year-round, following Part 1 approval and after completion of the Pre-Application Meeting. Nonrefundable application processing fees are charged for reviews of Part 2 Applications. SHPO strongly prefers to receive payment by electronic check on its payment portal .

If payment via the payment portal is not feasible, make check payable to “Iowa Economic Development Authority” and add “Part 2 STC##-##-###” to the memo line. Applications will be placed on hold and will not be reviewed until payment is received.

Iowa Economic Development Authority Part 2 Processing Fees For project with qualified rehabilitation costs of: Part 2 Processing Fee $50,000 or less No cost $50,001 to $100,000 $250 $100,001 to $750,000 $500 $750,001 to $6,000,000 $1,000 Over $6,000,000 $1,500 Refer to Iowa Code and Administrative Rules . Before applying, consult your accountant or tax advisor to make sure that this state tax credit is beneficial to you.

Certain income and other restrictions may have a bearing on whether an owner is able to use the credit. Part 2B - Registration Application Applications will open January 6, 2026 and will close March 20, 2026, at 4:30 p. m.

Applications for Small Projects are open year-round if funding is available. Application reviewed by SHPO and IEDA to determine project readiness and financial feasibility after Part 2 approval. Projects with approved Part 2B applications are registered for State Historic Preservation Tax Credits.

Registration applications for small projects (projects with qualifying expenses less than $750,000) are accepted on an ongoing basis. Registration applications for large projects (projects with qualifying expenses over $750,000) are typically accepted twice per year. Large and small project applications are submitted through iowagrants.

gov Applicants should not submit Part 2B applications through the State’s ESHPO system. Application submitted through iowagrants. gov This application is reviewed by SHPO and IEDA to determine if completed work has met The Secretary of the Interior’s Standards for Rehabilitation and that all other program requirements and contract conditions have been met.

Projects with approved Part 3 applications are issued tax credit by IEDA. Nonrefundable application processing fees are charged for reviews of Part 3 Applications. SHPO strongly prefers to receive payment by electronic check on its payment portal .

If payment via the payment portal is not feasible, make check payable to “Iowa Economic Development Authority” and add “Part 3 STC##-##-###” to the memo line. Applications will be placed on hold and will not be reviewed until payment is received.

Iowa Economic Development Authority Part 2 Processing Fees For project with qualified rehabilitation costs of: Part 3 Processing Fee $50,000 or less No cost $50,001 to $100,000 $250 $100,001 to $750,000 $500 $750,001 to $6,000,000 0. 5 % of final qualified rehabilitation Over $6,000,000 $30,000 Refer to Iowa Code and Administrative Rules .

Before applying, consult your accountant or tax advisor to make sure that this state tax credit is beneficial to you. Certain income and other restrictions may have a bearing on whether an owner is able to use the credit. 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.

The Iowa Economic Development Authority (IEDA) administers the program in consultation with the State Historic Preservation Office of Iowa (SHPO). Funding applications, referred to as a registration round, are accepted in set periods during the year. ESHPO Quick Training Reference Guide (1.

9 MB) . pdf Part 2B Historic Tax Credit Registration Webinar Recording Part 2B Historic Tax Credit Registration Webinar Presentation Slides (1. 39 MB) .

pdf Instructions for Submitting a Part 3 Application (205. 05 KB) . pdf QRE Schedule (32.

09 KB) . xlsx Historic Preservation Tax Credit Program Report - 2019 (5. 43 MB) .

pdf Historic Preservation Tax Credit Program Report - 2020 (927. 82 KB) . pdf November 2025 SHTC Awards (147.

35 KB) . pdf May 2024 SHTC Awards (42. 5 KB) .

pdf November 2023 SHTC Awards (72. 64 KB) . pdf March 2023 SHTC Awards (35.

76 KB) . pdf nick. sorensen@iowaeda.

com