Squire, Sanders & Dempsey L.L.P.
Comparison of the Ohio and Federal Historic Tax Credits
Ohio Rehabilitation Tax Credit
Federal Rehabilitation Tax Credit
What buildings are eligible?
It appears that both depreciable and non-
depreciable buildings (e.g., personal
residences) are eligible.
Only depreciable buildings that are not
tax-exempt-use properties are eligible.
What are the rehabilitation
The US Secretary of the Interior’s
The US Secretary of the Interior’s rehabilitation
How much rehabilitation is required
to claim the credit?
No minimum amount of rehabilitation is
specified; however, any rehabilitation must
meet the National Historic Preservation
Act’s rehabilitation standards. Unlike the
federal statute, there does not appear to
be a substantially rehabilitated
The building must be “substantially rehabilitated,”
and the rehabilitation must eventually be treated
as a “certified rehabilitation.” A building is
substantially rehabilitated when qualified
rehabilitation expenditures incurred during a
certain measurement period exceed the
taxpayer’s basis in the building at the beginning of
When may the credit be claimed?
The credit may be claimed only in the
calendar year specified in the Ohio Tax
Credit Certificate, and the certificate is
issued after the completion of the
The credit may be claimed in any tax year in
which the qualified rehabilitation expenditures are
placed in service.
Is an application required for the
taxpayer to claim the credit?
Yes, only a taxpayer whose application
has been approved by the Ohio
Development Director may receive a credit
certificate entitling the taxpayer to claim
the credit on a tax return. The director can
approve up to 100 applications in each of
the next two years.
Yes, the taxpayer must apply for certifications
from the National Park Service to establish that
the rehabilitation is a “certified