The Property Tax Assessment Freeze Program provides tax incentives to owner-occupants of certified historic residences who rehabilitate their homes. The Program freezes the assessed valuation of the historic property for eight years at its level the year the rehabilitation begins. The valuation returns to market level over a four-year period.
To qualify, a property must be registered as a historic structure on the National Register of Historic Places or designated by an approved local historic preservation ordinance. Properties must be owner-occupied single-family homes, condominiums, cooperatives or multi-family buildings of up to six units (with one unit owner-occupied). At least 25% of a property’s market value must be invested in an approved rehabilitation project. The rehabilitation needs to substantially improve the condition of the building and comply with the Secretary of the Interior’s Standards for Rehabilitation.
If a property qualifies for the Property Tax Assessment Freeze, the owner must apply for a Certificate of Rehabilitation within two years of project completion. If the property is sold during the eight-year freeze period or if its use changes from owner-occupied residential, the Certificate is revoked.
Each year during the freeze period, property owners receive and must complete an affidavit that verifies they are the owner-occupants of the residence.
Property owners can determine the assessed valuation and fair market value of their property by checking their current property tax bill or contacting their local assessment office.
The Property Tax Assessment Freeze Program is managed by the Illinois Historic Preservation Agency.
Source: Illinois Historic Preservation Agency