Louisiana · Historic Rehabilitation Tax Credit
Historic Rehabilitation Tax Credit in Louisiana (2026)
Claim a 20% tax credit on qualified rehabilitation expenses for certified historic structures, taken ratably over 5 years. Louisiana has a flat 3% income tax, so a Louisiana filer's combined marginal rate on the next dollar at $52,800 of income is about 15% (12% federal + 3% LA).
2026 savings example for Louisiana
Planning estimate for a single filer earning $52,800 (Louisiana median household income in LevyIO's state dataset) who claims a $5,000 credit. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; LA tax uses the state brackets in LevyIO's dataset and assumes the state follows the federal treatment.
Estimated total savings
$4,156
Federal savings
$4,156
$4,156 → $0 · 12% bracket
LA state savings
$0
Federal credit only; check for a state credit
Combined marginal rate
15%
Credits do not depend on the bracket
Federal × Louisiana marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The LA column is the state marginal rate at the midpoint of each range. A credit saves its face value regardless of bracket.
| Federal bracket | Gross income (single) | LA marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 3% | 13% | $1,000 |
| 12% | $28,500 - $66,500 | 3% | 15% | $1,000 |
| 22% | $66,500 - $121,800 | 3% | 25% | $1,000 |
| 24% | $121,800 - $217,875 | 3% | 27% | $1,000 |
| 32% | $217,875 - $272,325 | 3% | 35% | $1,000 |
| 35% | $272,325 - $656,700 | 3% | 38% | $1,000 |
| 37% | Over $656,700 | 3% | 40% | $1,000 |
Eligibility & forms
Owners of certified historic structures who undertake substantial rehabilitation
- 20% credit for certified historic structures
- Must be a substantial rehabilitation (exceed adjusted basis)
- Must follow Secretary of Interior's Standards
Federal forms: Form 3468, NPS Form 10-168
Louisiana filing notes
Low 3% rate and federal standard deduction simplify planning. Be aware of very high combined sales tax. Louisiana offers homestead exemption on first $75,000 of assessed value. Social Security is fully exempt.
Common mistakes: Not getting Part 1 certification before starting work; Failing to meet the substantial rehabilitation test; Not spreading credit over 5 years as required.
Frequently asked questions
How much can the Historic Rehabilitation Tax Credit save a Louisiana taxpayer in 2026?
Credits reduce tax dollar-for-dollar. In LevyIO's example, a single filer with $52,800 of income (the Louisiana median household income in our state dataset) and a $5,000 credit would cut 2026 federal tax from $4,156 to $0, a $4,156 saving. Whether Louisiana offers a matching state credit depends on the LA return, so the estimate counts federal savings only.
What is the Louisiana income tax rate for 2026?
Louisiana has a flat 3% income tax. The LA standard deduction in LevyIO's dataset is $14,600 single / $29,200 married. Flat 3% (2025). Uses federal standard deduction. Highest average combined sales tax (10.11%, Tax Foundation 2026). Low property taxes.
Who qualifies for the Historic Rehabilitation Tax Credit in Louisiana?
Owners of certified historic structures who undertake substantial rehabilitation. The federal rules are the same in every state; the requirements are: 20% credit for certified historic structures; Must be a substantial rehabilitation (exceed adjusted basis); Must follow Secretary of Interior's Standards. Louisiana filers should confirm on the LA return whether the state follows the federal treatment.
Which forms do I file to claim the Historic Rehabilitation Tax Credit?
Federal: Form 3468, NPS Form 10-168. Louisiana: check the Louisiana Department of Revenue instructions for the matching state schedule. Common mistakes: Not getting Part 1 certification before starting work; Failing to meet the substantial rehabilitation test; Not spreading credit over 5 years as required.
Historic Rehabilitation Tax Credit in other states
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.