Federal Tax Credits

Lyman Mill, North Providence
The rehabilitation of Lyman Mill in North Providence was made possible by State and Federal tax credits.

Federal tax incentives are available for substantial rehabilitations of historic buildings. The incentive is a tax credit taken on the owner's income tax equal to 20% of rehabilitation costs. Application for the credit is made through the Rhode Island Historical Preservation & Heritage Commission (RIHPHC); final certifications are issued by the National Park Service (NPS). 

Visit the NPS Tax Incentives website for the application and background information. Please note that the submission process for tax credit applications has changed. The NPS has instituted a fully digital review process to begin on August 14, 2023. Therefore, all submissions made to the RIHPHC after that date must be made digitally and must conform to NPS guidelines. Those guidelines are available on the NPS website. RIHPHC is working with the state’s Division of Information Technology to establish a process that will allow for digital file transfer. Until that is complete, applications should be submitted to the RIHPHC on a flash drive.

Historic properties must be listed on the National Register of Historic Places as individual structures or as part of a historic district. To confirm if your property is eligible, email Joanna Doherty or call her at (401)222-4136. The proposed work is reviewed by RIHPHC architects and must be consistent with the Secretary of the Interior's Standards for Rehabilitation.

To be eligible for the tax credits for rehabilitation, the building must be depreciable (i.e., used in trade or business or held for the production of income) and not an owner-occupied residence. The rehabilitation costs must exceed the adjusted basis of the building or $5,000, whichever is greater. The rehabilitation must be completed within a 24-month period.

Also, applications must be received by the RIHPHC before the work is complete. Applications must include photographs of the property before the work has started. 

RIHPHC also administers State Tax Credits for owners of historic commercial buildings.

Contact Virginia Hesse or call her at (401) 222-4135 for information on requirements, or visit the NPS Tax Incentives website for the application and background information.