In the Know

Thirty-four (34) states have a state historic tax credit program that can be used in tandem with the federal program. Just as architecture and accents vary by state, so do the historic tax credit programs. This blog series will explore the similarities and differences of these programs across the country.

Oklahoma is hot right now, and it’s not just the southern latitude. Developers and property owners in big cities and small towns are using the state tax credit to leverage private investment in historic buildings. The Oklahoma historic tax credit program is remarkably similar to the Federal program, in fact, it is a companion program that can only be used by projects that receive Federal credits. Eligibility requirements mirror the federal program. A property must be income producing and the rehabilitation must meet the minimum investment threshold of the greater of $5,000 or 100% of the adjusted basis. Like the Federal program, there is currently no cap on the amount of credits issued per project or per year. Unlike the Federal credit, the Oklahoma credit is transferable; it can also be carried back three years; and has no provision for recapture.

Oklahoma is unique in having a state tax credit program that matches the federal 10% credit for rehabilitation of non-designated buildings constructed before 1936. Like the 20% credit, the programs have identical requirements and must be used in tandem.

Oklahoma has no separate application or review process until your Federal Part 3 is approved and you are ready to claim the Oklahoma credits. A formal request to the Oklahoma Tax Commission, who administers the program, yields the tax credit certificate. Key pieces of this request are the approved federal Part 3 and a cost certification. The cost certification provides a level of oversight and comfort for state elected officials and their budget minders.


21c Museum Hotel - 02 - After - lobby

The lobby of the 21C Museum Hotel in Oklahoma City.


Noble Lofts - 02 - After - exterior

The Noble Lofts in Bartlesville.