2021 Barn Tax Incentive Applications Due Mid-April

It’s that time of year again! New and renewal applications are due April 15th, 2021 for RSA 79-D, New Hampshire’s Barn Tax Incentive Program.

What is RSA 79-D?

Old barns are significant features of our communities in both rural and in-town settings.

N.H. 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 N.H. Department of Revenue Administration, by the close of 2020, 100 communities in New Hampshire  have a total of 607 historic structures currently participating in the program.

Sandwich, Freedom, Deerfield, Hopkinton, Plainfield, Stratham, Kensington and Kingston lead the state with 15 or more structures protected; Alton, Candia, Concord, Cornish, Fitzwilliam, Henniker, Lancaster, Lee, Lyme, Lyndeborough, Marlborough, Moultonborough, New Boston, North Hampton, Orford and Weare all have between 10 and 14 structures protected under the program.

 “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 and other agricultural structures bring to the scenic landscape of their communities,” - Beverly Thomas, Program Director, New Hampshire Preservation Alliance.

How would RSA 79-D benefit me?

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 or other old farm buildings while agreeing to maintain their structures through a minimum of a 10-year renewable easement. In return, the municipality provides property tax relief of 25% to 75% of the full assessed value of the building and the land underneath it. And, importantly, the assessment will not increase as a result of maintenance or repair work that is performed while the easement is in effect.                       

Carl Schmidt, chair of the N.H. Historic Agricultural Structures Advisory Committee, is encouraged by the continued growth of the program, but also noted that "this important tool is still under-utilized and I hope that more barn owners and municipalities embrace this opportunity to help save an essential part of our state’s character."  He commented that municipalities with strong barn preservation advocates or an active Heritage Commission or other group that helps guide Selectboards or City Councils can make a big difference in the use of this valuable tool.

How do I apply for RSA 79-D?

Barn owners interested in applying for the incentive to become effective in the coming tax year need to apply by April 15, 2021. Also of note is that easements that went into effect in the ninth year of the program (2011) for a ten-year term expire on March 31, 2021 unless a renewal application is received by the April 15 deadline. Property taxes on the relevant structures may then increase unless the easements are renewed.  Applications for renewal, like new applications, must be submitted to your municipality on N.H. DRA form PA-36-A no later than April 15, 2021. 

Applications can be obtained from your town office or download an information packet with application from the Alliance’s web-site www.nhpreservation.org or call 603-224-2281. Applications are also available at www.revenue.nh.gov/forms/2010/documents/pa-36a.pdf.

If you have additional questions, contact Beverly Thomas

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