The State of Hawai‘i offers a historic preservation income tax credit for the rehabilitation of historic structures. See HRS Sec. 235-110.97 (2019). The tax credit took effect on July 1, 2019 and is authorized for five years.

The tax credit is available for 30% of the qualified expenditures to preserve and rehabilitate certified historic buildings. The total amount of the cumulative credit is capped at $1,000,000 per year.

Key provisions of the tax credit program include:

  • The credit is available for “certified historic structures,” which are those that are listed on the Hawai‘i or the National Register of Historic Places, either individually or as a contributing building in a district;

  • Properties that meet the criteria, but have not yet been listed on the historic register, may be able to claim the credit if the property is listed by the time that the rehabilitation project is complete;

  • Eligible expenses are costs associated with the physical rehabilitation or renovation of the historic structure that are in accordance with a rehabilitation plan. The costs do not include the taxpayer’s personal labor.

  • The rehabilitation plan means construction plans and specifications that preserve the historic character of the building. The rehabilitation plan must be approved by SHPD.

  • The rehabilitation must by “substantial,” meaning the scope of work exceeds 25% of the assessed value of the structure.

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