Louisville historic tax credit guide—discover how Old Louisville and Cherokee Triangle homeowners can claim up to $120,000 in direct, refundable credits for renovations. Contact Justin Reid at Key Source Home for expert help.
Louisville’s historic neighborhoods are filled with architectural gems—and now, thanks to Kentucky’s expanded historic tax credit program, renovating your home in Old Louisville or the Cherokee Triangle could put up to $120,000 back in your pocket. This isn’t just a tax deduction—it’s a direct, refundable credit. For many homeowners, that means a check from the state you can take straight to the bank. As someone who’s been through the process and received a substantial refund, I can confirm: this is a game-changer for local homeowners.
What’s New: Kentucky’s Increased Historic Tax Credit Cap
Recent legislative updates have doubled the maximum credit for owner-occupied residential projects. Homeowners can now claim 30% of up to $400,000 in qualified rehabilitation expenses—a potential $120,000 back. This update makes historic renovation more accessible and lucrative for families ready to invest in their homes and neighborhoods.
How the Kentucky Historic Tax Credit Works
If your property is listed on the National Register of Historic Places or contributes to a registered historic district, you’re likely eligible. Qualified expenses include major renovations—kitchens, baths, window replacements, and exterior restoration. Routine maintenance and new additions typically do not qualify.
The process is straightforward:
- Pre-Approval: Apply before starting work, submitting photos and a project description.
- Project Documentation: As you renovate, document with before-and-after photos and receipts. Update the state if your project scope changes.
- Final Certification: After completion, submit your final paperwork. If approved, you’ll receive a tax credit certificate.
For owner-occupants, this credit is refundable. If your tax bill is less than the credit, the state sends you a check for the difference—real, spendable money.
Why This Matters for Louisville Homeowners
With the cap now at $400,000 in eligible expenses and a potential $120,000 in credits, the opportunity for Louisville homeowners has never been better. Old Louisville and the Cherokee Triangle are packed with qualifying properties, yet many residents still aren’t taking advantage. After completing a kitchen, half bath, and window renovation in my own home, I received a check from the state that made a real impact on our finances.
Key Benefits and Action Steps
- Substantial Savings: Up to $120,000 in direct, refundable credits for qualifying renovations.
- Simple Process: The application is approachable, and state staff are helpful.
- Local Focus: Old Louisville and Cherokee Triangle homes are prime candidates.
- Real Results: Personal experience and client stories prove the program delivers.
To maximize your benefit:
- Confirm your property’s eligibility in a historic district.
- Apply before starting any renovation work.
- Keep thorough documentation—photos, receipts, and a clear project scope.
- Reach out for expert guidance if you’re unsure about any step.
Frequently Asked Questions
How do I know if my home qualifies?
If your home is in a registered historic district or individually listed on the National Register, you’re likely eligible. Old Louisville and the Cherokee Triangle both qualify.
What types of renovations count?
Substantial improvements—kitchen remodels, bathroom upgrades, window replacements, and exterior restoration—are typically eligible. Routine maintenance and new additions usually are not.
Is the credit really refundable?
Yes. For owner-occupied homes, if your tax liability is less than your credit amount, you’ll receive a check for the difference.
Next Steps
If you’re considering a renovation, now is the time to act. Plan ahead, document everything, and apply before you start work. For expert guidance through every step, contact Justin Reid at Key Source Home.
Ready to unlock your home’s potential?
Contact Justin Reid at Key Source Home for personalized guidance through your renovation and the Kentucky historic tax credit process.
Kentucky Historic Tax Credit Info
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Jonathan Klunk is a licensed real estate agent in Louisville, KY with EXP Realty, as of this writing. This content is for informational purposes only and should not be considered legal or financial advice. Always consult a qualified real estate, legal, or financial professional before making decisions.
