Mississippi Historic Tax Credit Program: A Guide for Natchez Homeowners
Historic homes in Natchez are treasures, but maintaining and restoring them can be expensive.
The Mississippi Historic Tax Credit was created to help homeowners like you preserve these properties without shouldering the entire financial burden. In this guide, we’ll explain how the program works, who qualifies, and what steps you can take to benefit from it.
Overview of the Mississippi Historic Tax Credit
The Mississippi Historic Tax Credit program offers homeowners a 25% state income tax credit on qualified rehabilitation expenses. This can dramatically reduce the cost of restoration.
If your credit exceeds what you owe, you can request a rebate worth 75% of the excess amount, issued as a voucher redeemable for cash. This flexibility makes the program especially helpful for homeowners planning large-scale renovations.
Who is Eligible?
To qualify, your property must be:
A certified historic structure (either individually listed on the National Register of Historic Places) or
A contributing property within a recognized historic district (like many in downtown Natchez).
The work you do must meet the Secretary of the Interior’s Standards for Rehabilitation, ensuring the historic character of your property is preserved.
Minimum Investment Requirement:
You must invest the greater of $5,000 or 50% of your home’s adjusted basis in eligible rehabilitation expenses.
Example: If your home’s adjusted basis is $100,000, you must spend at least $50,000 on improvements. That would earn you up to a $12,500 tax credit.
What Counts as Qualified Rehabilitation Expenses?
Examples of eligible expenses include:
Roofing, structural repairs, or masonry work
Restoration of windows, doors, and original woodwork
Electrical, plumbing, or HVAC upgrades (if they support historic preservation)
Restoration of interior finishes that contribute to historic character
The following expenses typically do not qualify:
New additions that do not match the historic character
Landscaping, fencing, or site work
Appliances, furnishings, and other removable items
Cosmetic changes that do not preserve or restore historic features
How Does the Application Process Work?
The application is broken into three parts:
Part 1 – Confirm the building’s historic status with documentation and “before” photos (must be submitted before starting major work).
Part 2 – Submit the proposed scope of work, plans, and explanation of how it meets preservation standards.
Part 3 – After completion, submit “after” photos, receipts, and a summary of work.
Once approved by the Mississippi Department of Archives and History (MDAH), you’ll receive a certificate confirming your credit.
⏳ Timing Tip: Always submit Part 1 before work begins. You can complete projects in phases across multiple years, which makes early planning essential.
How Does This Benefit Homeowners?
The Mississippi Historic Tax Credit can:
Offset restoration costs (e.g., $100,000 in work = $25,000 credit).
Encourage quality craftsmanship and authentic repairs.
Protect the architectural integrity of your neighborhood.
Boost your home’s long-term property value.
Local Resources for Natchez Homeowners:
Levi and Grace Construction – Licensed & insured general contractors with historic rehab expertise
Website: levi-grace.com | Phone: (601) 870-5267Historic Natchez Foundation – Preservation guidance & status verification
Website: natchez.org | Phone: (601) 442-2500City of Natchez Planning Department – Zoning & historic district review
Website: natchez.ms.us/141/City-Planning | Phone: (601) 445-7518City of Natchez Permitting Office – Building permits & code compliance
Website:natchez.ms.us/141/City-Planning | Phone: (601) 445-7516
Additional Resources:
Restoring a historic home is a big undertaking, but the Mississippi Historic Tax Credit makes it more achievable. By planning carefully, you can preserve your property’s history while protecting your investment.
👉 If you’re ready to get started, Levi and Grace Construction is here to help.
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