Homes in Emerson Heights were already surprisingly affordable, now they even more affordable to restore.

Homes in our neighborhood that are used as a principal residence are potentially eligible for a 20% Indiana Residential Historic Rehabilitation Tax Credit.


General Requirements
This credit is available to us because we are listed on the National Register of Historic Places. The credit is available for contributing properties used as a principal residence, where substantial rehabilitation ($10,000 or more) is being done. The proposed work must conform to a Rehabilitation Plan that must be submitted to the state for approval first. The plan must be historically appropriate (they aren’t going to approve vinyl windows or vinyl siding, for example). The credit cannot be applied to landscaping or expanding the size of the home. For more details on requirements please see the link at the bottom of this page.


Example
For example, let’s say that you own a home in Emerson Heights that you intend to spend $30,000 restoring (roof, siding, foundation, structural work, mechanicals, etc.) You could be eligible to reduce your state income tax bill by $6,000 (it’s a credit, not a deduction) – making the cost to rehabilitate the house $24,000. The tax credit can be carried forward for up to 15 years. The work plan may be done in phases – over a period of up to five years (so, for example, you can do $10,000 the first year, $10,000 the next, etc.)
This credit can make the total cost of buying and rehabilitating a home in Emerson Heights much more attractive – particularly if the home is large or needs a lot of attention.

Income Producing Property a Different Program
This program is for owner- occupied homes. Income producing property falls under a different program. The tax credits for income producing property have been committed so far in the future that it doesn’t make sense to pursue those projects at this time.

List of Contributing Properties:
This link takes you to the National Register nomination form that lists the Contributing and Non-Contributing structures. You will need Adobe Reader. The list begins on Page 52. There is a rating given to both the House or Primary Structure and the Garage (“C” for contributing, “N” for non-contributing). The rational for deciding if a building is contributing or non-contributing is on page 9, second paragraph.

The availability of the historic tax credits is another reason not to make alterations to your home such as replacing windows and doors or altering the front that would make a historically contributing
property into a non-contributing property. Residents who are interested in the program are encouraged to understand the requirements and understand the tax benefits before beginning any work.

Additional Information and Application
More details on the program as well as applications: Residential Historic Rehabilitation Credit