New York State Historic Barn Rehabilitation Tax Credit

This program, introduced in 2022, offers owners of historic barns a New York State income tax credit equal to 25% of qualified rehabilitation expenditures.

What is a ‘Historic’ Barn?
Built before 1946, is or was used as an agricultural facility or for purposes related to agriculture. Hay barns, stables, livestock barns, smokehouses, milk houses, carriage barns, corn cribs, etc. Barns do not need to be listed on the State or National Registers to qualify for the credit.

What does “retaining the historic appearance” mean?
Rooflines, windows and doors should retain their original dimensions; interior features like posts, stalls, stanchions, hay mows, should be kept if possible. Materials used to repair or replace should be the same material as originally used, if possible, but modern materials are also permitted.

How much do I need to spend to qualify for the 25% tax credit?
$5,000 minimum. The Historic Barn Tax credit is retroactive to include qualifying expenses incurred up to 5 years prior to taking the credit. So, $5,000 spent would mean a $1,250 NYS income tax credit.

What work qualifies?

Qualifying expenses are primarily limited to the elements that make the barn a barn — structural elements like posts, beams, roof trusses, sheathing, windows, doors, roofs, cupolas, floors, masonry, foundation, interior stalls, mows, walls, etc. Architect, engineer, preservation consulting and permit fees qualify, as do modifications for ADA/OSHA compliance, and mechanical, electrical, and plumbing costs.

Can I convert the barn to another use?

Yes, as long as it’s not a residential use, barns may be converted to another use such as event space, retail, art studio, remote workspace, storage facility, gallery, or a workshop. Expenses incurred to convert the barn to another use generally do not qualify for the credit (demolition/rubbish removal, addition of interior spaces or partitions, new kitchens or bathrooms, drywall, carpeting, or additions that extend the barn’s footprint).

How does the credit work?

Barn owners submit Parts 1 and 2 to the NYS Division of Historic Preservation to receive authorization for the work proposed. Once barn owners submit Part 3 certifying completion of the work, the NYS Division of Historic Preservation will provide confirmation of the credit, with information on the correct tax form to submit when filing NYS income taxes. If the amount of the tax credit exceeds the barn owner’s tax liability for the year, the remaining credit may be carried over for up to ten years.

Printable Q&A: Otsego 2000 Q&A on the Historic Barn Tax Credits (pdf)

New York State Division of Historic Preservation

The Historic Barn Rehabilitation Tax Credit program is administered by New York State’s Division for Historic Preservation. More Information on the Barn Tax credit and the applications are found at: https://www.parks.ny.gov/shpo/tax-credit-programs/

• Historic Homeownership Tax Credit Program Handout (pdf)

• Barn Credit Part 1&2 Application (pdf)

• Barn Credit Part 3 Application (pdf)

Have a question? Otsego 2000 offers free technical assistance

As part of Otsego 2000’s commitment to preserving the region’s rural farms and farm buildings, we offer workshops on the Historic Barn Tax Rehabilitation Tax Credit and free technical assistance in completing applications. Please call 607.547.8881 to set up an appointment or email director@otsego2000.org. We’re glad to help!