During the 2023 regular session, the Louisiana legislature passed Act 426 making significant changes to Louisiana’s state historic tax credit law, La. R.S. 47:6019, that real estate developers will view as positive.

Sunset Date: The sunset date for the credit has been extended from January 1, 2026 to January 1, 2029.

Tax Credit Amount: The amount of the credit, with the exception for those incurred in rural areas as discussed below, is increased from 20% to 25% of rehabilitation expenditures incurred on or after January 1, 2023.

Rural Area Tax Credit Increase: For the rehabilitation of a historic structure located in a “rural area”, the amount of the credit is increased from 20% to 35% of rehabilitation expenditures incurred on or after January 1, 2023. A rural area is defined as any of the following as determined by reference to the most recent federal decennial census: (i) a parish with a population of less than 100,000, (ii) a municipality with a population of less than 35,000, or (iii) an unincorporated area of a parish with a population of more than 100,000. The goal of this increased credit is to incentivize real estate developers to invest in historic properties located outside of the state’s urban centers.

Explore Benefits of the HTC

To a real estate developer in Louisiana, state Historic Tax Credits (HTC) often times make the difference between a historic rehabilitation project being economically feasible as opposed to an undevelopable project. The following article explores the benefits of the HTC and the steps involved in obtaining the credit in more detail.

Read Louisiana Historic Tax Credits: What Developers Need to Know >