Construction Code Retrofitting Deduction

How it works

Louisiana law provides a construction code retrofitting deduction for homeowners who voluntarily retrofit an existing residential structure to bring it into compliance with the State Uniform Construction Code or the fortified home standards of the Insurance Institute for Business and Home Safety (IBHS). The deduction is for costs paid or incurred by the taxpayer, less any municipally sponsored, state-sponsored, or federally sponsored financial incentives for the same retrofitting cost.

The deduction is claimed on the return for the taxable year in which the work is completed.

What the money covers

The law describes the deduction as applying to retrofitting costs for an existing home. It is aimed at bringing the structure into code compliance or fortified-home compliance.

Amounts and matching

The deduction equals 50% of the cost paid or incurred, up to $10,000 per retrofitted residential structure.

How to apply

The deduction is claimed on the homeowner’s Louisiana income tax return for the year the work is completed. The Department of Revenue is authorized to issue rules and forms and to specify verification documents.

Timing and deadlines

The deduction applies to eligible retrofitting costs for taxable periods beginning after the statute’s effective date, and the work must be voluntarily completed rather than required by code because of new construction or damage.