New Jersey homeowners may soon have a new financial incentive to restore and preserve historic homes.
The proposed Homeowners’ Historic Property Reinvestment Act (S3545 / A870) would create a state gross income tax credit for eligible homeowners who rehabilitate qualified historic properties. If enacted, homeowners could claim a tax credit equal to 25% of qualified rehabilitation expenses, with a maximum credit of $25,000 per property over a 10-year period.
To qualify, homeowners would need to invest at least 50% of the property’s assessed value in rehabilitation work, with no more than 60% of the total rehabilitation costs allocated to interior improvements. The property must remain the homeowner’s primary residence for at least 12 consecutive months after the rehabilitation is completed. In addition, the legislation includes a recapture provision if the property’s historic integrity is compromised within five years of project completion.
The proposed program would be subject to a statewide cap of $15 million in available tax credits and is intended to encourage the preservation of New Jersey’s historic housing stock while helping homeowners offset the cost of significant restoration projects.
Although this legislation has not yet become law, it represents a meaningful opportunity for owners of historic homes if approved. Homeowners considering major rehabilitation projects may wish to monitor the bill’s progress and consult with qualified preservation and tax professionals to determine whether they could benefit if the program is enacted.
We will continue to share updates as additional information becomes available.