Forest ProductsTax Credit Sourcebook

Kentucky · Historic · KY-HIST-001

Historic Rehabilitation Tax Credit

Publication revised September 24, 2026. Sourcebook page 120.

Credit amount / calculation

Percentage of qualified rehabilitation expenditures subject to certification/allocation.

Business fit and eligible activity

Certified historic mills and industrial properties can qualify for a state rehabilitation credit. Eligible property rehabilitation or redevelopment; not the cost of wood supplied to someone else's project.

Eligibility and practical use

This is not a general construction credit. It becomes relevant when the real estate itself has the required historic, abandoned, brownfield, or redevelopment status. Advance certification is especially important here. Page

Illustrative business benefit

Use-of-credit illustration, not an estimated award: assume the agency or completed tax form establishes a $1,000 credit for the qualifying activity described above. If sufficient eligible tax is due, a $1,000 credit available for current use reduces that tax by $1,000. If annual limits allow only $600, that is this year's saving; the other $400 survives only if the carryforward or transfer rules permit. Obtain the actual program calculation before estimating a project benefit.

Timing / first action

Seek approval before signing a purchase order, contract, lease or other binding commitment. Confirm the exact point at which a purchase order, contract, lease, or other binding commitment would make the project ineligible.

Official sources

Related programs

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