How to Obtain the Wisconsin Historic Home Tax Credit

By Thoughtful Craftsmen | April 5, 2022 |

What is a tax credit?

A tax credit is a percentage of money spent to improve your home. Tax credits are better than tax deductibles because they work on a dollar-for-dollar basis. If you owe the government $6,000 in taxes and have a $4,000 tax credit, you would end up paying $2,000.

Wisconsin Historic Home Tax Credit

In Wisconsin, the Historic Home tax credit returns 25% of the total restoration cost. To be eligible, the project must cost at least $10,000 over 2 years. There is also a maximum of $40,000. You can submit multiple applications, so if there is work that reaches $80,000, it can be split over two applications, so you receive a better tax credit amount altogether.

Steps to Apply for Your Old Home’s Tax Credit

One key step in the tax credit application process is to ensure all work is approved before any work begins.

Next, see whether your home qualifies for tax credits in Wisconsin. You can look up your home on the Wisconsin Historical Society website. If you can find your home, it is already listed as historic, and you can move forward with the tax credit process. If your home isn’t listed, you can still apply for the tax credit but will require research into whether or not your home is historic. For the application, you will need the home’s build date, style, and current condition; whether there have been any additions; and why the home is significant.

Other steps include getting current photographs of your home, estimates for each project, and an estimate of the start and completion dates. While you don’t need to get a formal bid for your historic home to determine costs, it could be a useful tool when applying for a tax credit.

What’s the oldest neighborhood organization in Milwaukee?

While many neighborhoods have historic houses in Milwaukee, the “Historic Water Tower Neighborhood” is the largest and oldest neighborhood organization. Founded in 1973 as the “Water Tower Landmark Trust,” this group sought to preserve the housing stock on Milwaukee’s East Side. According to the HWTN Remembering Our Own Past Presentation, the group that started the trust “became one of the most unusual and most effective neighborhood organizations in the city. Its leaders pushed for a new zoning ordinance and stricter building code enforcement. They negotiated with local institutions and developers. They spearheaded efforts to secure landmark status for the neighborhood.” Now, the area has over 500 homes that were built more than 100 years ago.