Using Federal Tax Credits

The Federal Rehabilitation Tax Credit, otherwise known as the Historic Tax Credit, is one of the most powerful historic preservation tools on the federal level. Recognizing the cost of rehabilitating historic buildings, the Historic Tax Credit provides a 20% income tax credit to developers of income-producing properties such as office buildings, retail establishments, rental apartments, and other properties. This benefit is realized once a project is complete. 

State Historic Preservation Office (that's us!) reviews Historic Tax Credit projects to ensure their consistency with the Secretary of the Interior’s Standards, and the National Park Service provides the final certification. Learn more.

Please note that the submission process for tax credit applications is now entirely paperless. 

The Road to Federal Tax Credits

Interested parties should review the NPS Tax Incentives website for application and background information. All rehabilitations must be completed within 24 months.

• Review the HTC application checklist before submitting. Everything you need (including the checklist) is in the document library.
• Our office must receive Part I and Part II of the Federal Historic Tax Credit application for approval before the work is complete. Completed work that does not meet the Secretary of the Interior Standards may require remediation, or result in the denial of the tax credits.
• Applications must include photographs of the property before work has begun. 

Assembling a successful application is a significant effort, and property owners often hire a consulting preservationist to prepare it. 

To begin an application, request a SharePoint folder. 

What is eligible?

These factors can help you decide whether your rehabilitation project meets the basic requirements for the 20% Historic Tax Credit. Eligible projects must meet the following criteria:

1. Historic Structure: Properties must be listed in the National Register of Historic Places or be eligible for listing. Nominations to the National Register can happen in parallel to rehabilitation.
2. Income-Producing: The property must be depreciable, meaning it is used in a trade or business or held for the production of income (e.g., commercial, office, rental housing).
3. Substantial Rehabilitation: Rehabilitation expenses must exceed the greater of $5,000 or the adjusted basis of the building and its structural components.
4. Certified Rehabilitation: The project must be approved by the National Park Service (NPS) as meeting the Secretary of the Interior's Standards for Rehabilitation.