Effective May 14, 2014, The Colorado Job Creation and Main Street Revitalization Act provides an income tax credit for costs incurred in connection with the preservation of historic structures.
The credits have a 10 year carry forward and are transferable for commercial properties. For tax years commencing on or after January 1, 2016 through December 31, 2019, a credit is available to owners of residential and commercial historic structures, defined as properties that are 50 years old, listed individually or as a contributing property in a district included in the state register of historic properties, designated as a landmark by a certified local government or listed as a contributing property that is included within a designated historic district of a certified local government. The tax credit is available for a portion of the qualified rehabilitation expenses incurred with respect to the properties. In the case of residential properties, the amount of the credit is 20% of the qualified rehabilitation expenditures under $2 million and 20% of the qualified rehabilitation expenditures in excess of $2 million.
Additional credits are available for properties located in designated disaster areas.
The credit is limited to $1 million in any calendar year with respect to commercial structures and$50,000 over a 10-year rolling period (commencing with a change in ownership) for residential structures. The amount of credits for preservation of commercial structures available, in aggregate, for the 2016 calendar year are:
- $2.5 million for commercial structures estimating qualified expenses of less than $2.5 million ($5 million for each of the 2017, 2018, and 2019 years)
- $2.5 million for commercial structures estimating qualified expenses of more than $2.5 million ($5 million for each of the 2017, 2018, and 2019 years)