CT-1120 HP: Historic Preservation Tax Credit (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Form CT-1120HP is used to claim Connecticut’s Historic Preservation tax credit. It reports the credit amount on a DECD voucher, credits applied to 2024, and unused credits carried forward to 2025.
Who files this form
Use Form CT-1120HP to claim Connecticut’s Historic Preservation tax credit for rehabilitating a certified historic structure for mixed residential and non-residential use. You may claim the credit only if the Department of Economic and Community Development (DECD) has issued a tax credit voucher.
The form identifies three types of claimants:
- An owner.
- An assignee.
- A taxpayer named by the owner as contributing to the rehabilitation.
The credit may be applied against Connecticut taxes on insurance companies and health care centers, corporation business, air carriers, railroad companies, community antenna television systems, or utility companies.
What you'll need
Have the following available to complete the form:
- The DECD voucher showing the credit amount for the 2024 income year.
- The eligible taxpayer’s name, Connecticut Tax Registration Number, and income-year beginning and ending dates.
- If claiming as an assignee, the assignor’s name and Connecticut Tax Registration Number, if available. Attach an explanation.
- To complete the carryforward computation, credit amounts from the 2019 through 2024 Forms CT-1120HP and records of credits previously applied, carried forward to 2024, and applied to 2024.
Common mistakes
- Using the wrong year’s form. The form is year specific, so use the 2024 version for the 2024 income year.
- Using ink other than blue or black, or using staples. The form says to use blue or black ink only and not to use staples.
- Claiming the credit without a DECD tax credit voucher. A voucher must have been issued before the credit can be claimed.
- Leaving out shared credits in the carryforward computation. Members included in the 2024 Form CT-1120CU must include in Column D credits shared to and used by another member of the combined group.
Questions people ask
How much is the credit?
The credit equals the lesser of 25% of projected rehabilitation expenditures or 25% of actual rehabilitation expenditures. If DECD certifies that the project creates qualified affordable housing units, the percentage is 30% instead. Enter the amount listed on the DECD voucher for the 2024 income year in Part I, Line 1, and on Form CT-1120K, Part I-C, Column B and/or Form CT-207K, Part 1C, Column B.
When can I claim the credit?
You may claim it in the year the substantially rehabilitated certified historic structure is placed in service. For projects completed in phases, the credit is prorated to the substantially rehabilitated identifiable portion of the building placed in service.
Can the owner assign the credit to someone else?
Yes. An owner allowed the credit may assign it to any individual or entity. The assignee must claim it in the same year the owner would have been eligible to claim it. The assignee cannot assign the credit again.
What happens if I cannot use all of the credit?
Unused credit may be carried forward for five succeeding income years after the year the substantially rehabilitated structure was placed in service. An assignee may also carry forward unused credit. No carryback is allowed.
Can the credit be recaptured?
Yes. If a voucher is issued for a non-residential portion placed in service and the residential portion is not completed on time, the owner must recapture 100% of the credit issued for the portion previously placed in service.