Iowa Historic Preservation Tax Credit

State Tax Credit

1. Iowa Historic Preservation Tax Credit

Amount: State income tax credit of up to 25% of qualified rehabilitation expenditures (QREs).

Transferable: Yes — credits can be sold or transferred if the owner cannot use them.

Administered by: Iowa Economic Development Authority (IEDA), in coordination with the State Historic Preservation Office (SHPO).

Official page: iowaeda.com/historic-preservation-tax-credit

Eligible Properties

The building must be historically significant by meeting at least one of these criteria:

• Listed on the National Register of Historic Places, or SHPO-determined eligible for listing.
• Contributing to a National Register-listed or eligible historic district.
• Designated as a local landmark by city or county ordinance.
• A barn built before 1937, or a National Register-listed/eligible barn.

Substantial Rehabilitation Thresholds

Building Type	Minimum Rehab Expenditure
Commercial	At least 50% of building value (excluding land) or $50,000, whichever is less.
Non-commercial	At least 25% of assessed value (excluding land) or $25,000, whichever is less.

Key Rules

• Work must meet the Secretary of the Interior’s Standards for Rehabilitation.
• Applicant must be the fee-simple owner or a long-term lessee meeting federal rehabilitation-credit rules.
• Nonprofits may apply; governmental bodies may not.
• QREs generally do not include costs financed by federal, state, or local grants or forgivable loans (unless otherwise allowed under IRC § 47).

Application Process

1. Part 1 — Historic-significance and eligibility review (submitted through ESHPO).
2. Part 2 — Scope-of-work review; work must meet rehab standards (submitted through ESHPO).
3. Part 2B / Part 3 — Registration and final certification (submitted through iowagrants.gov).

• Small projects (under $750,000 in qualifying expenses): accepted on a rolling basis.
• Large projects (over $750,000): typically accepted twice per year.