Most property owners and developers in Louisiana know that Governor Jeff Landry called a special legislative session this fall to address extensive Louisiana state tax reform. House Bill 1 eliminates or quickly sunsets a large number of tax credits covering a wide variety of subjects, including historic tax credits. One in particular that has been highly useful to historic commercial property owners and developers is La. R.S. 47:6019 which in most instances provides for a 25% credit against renovation expenditures for certified historic structures.

Currently, this statute sunsets on December 31, 2028, meaning that all qualified rehabilitation expenditures incurred on or prior to December 31, 2028. House Bill 1, as currently written shortens the eligibility period but not in a straight forward manner. As currently written House Bill 1 provides in part, “No credits shall be granted pursuant to this Section for any applications for which Part I is received after June 30, 2025.” Notice that the focus changes from the date of a rehabilitation expenditure to the date of the Louisiana Historic Rehabilitation Commercial Tax Credit Application Part I form, the initial step in determining whether a given property is eligible for state historic tax credits, is filed with the Louisiana Division of Historic Preservation of the Office of Cultural Development.

Download a PDF of the Commercial Tax Credit Application Part I form >

At this time, House Bill 1 is only a bill moving its way through the legislative process, but most knowledgeable observers expect Governor Landry’s tax reform to be approved in one form or another by the legislature and signed by the Governor.

The Takeaway for Property Owners and Developers

So, what is the takeaway for property owners and developers in Louisiana? If you own or plan to purchase and redevelop a historic property in Louisiana, make sure to file the Part 1 form by June 30, 2025. If it is ultimately certified as historic by the state historic preservation office, the property will be eligible for state historic tax credits regardless of the date the project is certified and regardless of the later dates the rehabilitation expenditures are incurred.