Individual Income Tax Historic Rehabilitation Tax Credit

Note: These common questions relate only to the state historic rehabilitation credit. See the instructions for Schedule HR for information concerning the state supplement to the federal historic rehabilitation credit.

  1. I own and live in an old home that has historical significance. Is there any Wisconsin tax benefit for rehabilitating my home?

  2. I learned about the historic rehabilitation credit after I had begun work on my home. Can I still qualify for a credit?

  3. I rehabilitated my historic home two years ago. I just became aware of the historic rehabilitation credit. Can I still qualify for a credit?

  4. I have finished a rehabilitation project on my home. The Wisconsin Historical Society had approved the project. How do I claim a credit on my Wisconsin income tax return?

  5. Is it possible to completely offset all my Wisconsin tax liability by claiming the historic rehabilitation credit?

  6. My historic rehabilitation credit was greater than my tax liability. Can I carry over any of the unused amount to the next year?

  7. My father completed rehabilitation work on his solely owned personal residence in August of 2014. The property is certified by the Wisconsin Historical Society. He claimed the Historic Rehabilitation Tax Credit on his 2014 Wisconsin individual tax return. He passed away in tax year 2018 which is within 5 years after the work was completed. The residence was included in his estate and my siblings and I received equal interest in the property. Must the rehabilitation credit be repaid?

  8. If I purchase my sibling's interest in the property and live in the property, does the Historic Rehabilitation Credit have to be repaid?

  9. Under what circumstances would the Rehabilitation Credit have to be repaid?

  10. If the Historic Rehabilitation Credit has to be repaid, how is this recapture calculated?


Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations in effect as of December 17, 2019: Sections 44.02, 71.07, 71.28 and 71.07(9r), Wis. Stats., sec. Tax 2.08, Wis. Adm. Code, and secs. HS 3.04 and 3.06, Wis. Adm. Code.

Laws enacted and in effect after December 17, 2019, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to December 17, 2019, that is contrary to the information in this document is superseded by this document, pursuant to sec. 73.16(2)(a), Wis. Stats.

FOR QUESTIONS OR COMMENTS CONTACT:

MS 5-77
WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2772
Fax: (608) 267-1030
Email additional questions to DORIncome@wisconsin.gov

Guidance Document Number: 100140

December 17, 2019