Barn tax incentive use continues to grow

CONCORD — Holderness, Effingham, Lebanon and Nottingham have joined a growing number of towns and cities using the state's tax incentive program to encourage historic barn preservation. RSA 79-D authorizes towns and cities to grant property tax relief to barn owners who can demonstrate the public benefit of preserving their barn or other older farm buildings, and agree to maintain them throughout a minimum 10-year preservation easement. 

According to preliminary data collected by the New Hampshire Department of Revenue Administration, by the end of 2019, 100 communities enrolled 603 historic structures.

Freedom, Sandwich, Deerfield, Hopkinton, Plainfield, Stratham and Kingston, Kensington lead the state with 16 or more structures protected; Alton, Candia, Concord, Cornish, Fitzwilliam, Henniker, Hopkinton, Kingston, Lancaster, Lee, Lyme, Marlborough, Moultonborough, New Boston, North Hampton, Orford and Weare all have 10-15 structures protected under the program. 

“We are encouraged that 603 structures are now participating in this program, up four percent from last year, and 100 municipalities involved in the program,” said Beverly Thomas, program director, New Hampshire Preservation Alliance. “People across the state and their municipal leaders understand the significance of these historic structures, the opportunities to continue to use them in creative ways, and the value these barns bring to the scenic landscape of their communities.” 

Modeled after the state's open space discretionary easement program, the barn tax incentive allows municipalities to grant property tax relief to barn owners who can demonstrate the public benefit of preserving their barns. In return, municipalities provide tax relief of 25-75 percent of the full assessed value of the building and land. The assessment will not increase as a result of maintenance or repair work performed while the easement is in effect. 

Carl Schmidt, chair of the New Hampshire Historic Agricultural Structures Advisory Committee, is encouraged by the continued growth of the program, but also noted that it is still under-utilized. He added that municipalities with strong barn preservation advocates or active heritage commissions that help guide selectboards or city councils can make a big difference.

Barn owners interested in applying for an incentive effective in the coming tax year need to apply by April 15. Easements that went into effect in 2010 expire on March 31, unless a renewal application is received by the April 15 deadline. Property taxes on the structures may increase unless easements are renewed. Applications for renewal, like new applications, must be submitted to the municipality on a New Hampshire DRA form PA-36-A no later than April 15.

To apply, visit the town office where the barn is located, visit nhpreservation.org or call 603-224-2281. Applications are also available by visiting revenue.nh.gov/forms/2010/documents/pa-36a.pdf.

Barn topics will be featured at the March 21-22 Old House and Barn Expo.