Finance

An Oklahoma homebuyer who is purchasing a historic home under the federal Historic Tax Credit program should know that renovation costs that qualify:

AReduce the property value for tax purposes
BMay generate federal tax credits equal to 20% of qualified rehabilitation expenditures for certified historic structures, providing significant financial incentives for historic preservation✓ Correct
CAre not deductible under any circumstances
DMust be approved by OREC before expenditure

Explanation

The Federal Historic Tax Credit provides a 20% income tax credit for certified rehabilitation of certified historic structures. This credit has spurred significant historic preservation and adaptive reuse projects throughout Oklahoma's cities and towns.

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