Incentives for Preserving Historic Properties
Preservation-focused tax incentive programs exist at the federal, state, and local levels. In general, they counter private and public land-use policies favoring demolition and new construction, while providing financial benefits to building owners who might otherwise feel burdened by preservation projects.
Federal Rehabilitation Tax Credit
The historic rehabilitation tax credit is the nation's largest federal incentive promoting urban and rural revitalization through private investment in reusing historic buildings. The credit allows the owner of a certified historic structure to receive a federal income tax credit equal to 20% of the amount spent on qualified rehabilitation costs. There is also a 10% credit for older, non-historic buildings. Since it was enacted in 1976, the credit has been widely used as an effective tool for transforming vacant and underutilized buildings into safe, decent, and – in many cases – affordable places to live and do business.
State Rehabilitation Tax Credits
More than half the states in the country have enacted laws that afford tax relief to owners of historic buildings – many of which are modeled after the federal rehabilitation tax credit. These incentives may be available for both income and non-income producing properties. Some of the various state tax laws include income tax deductions, a credit or abatement for rehabilitation, a special assessment for property tax, sales tax relief, tax levies, and property tax exemption.
For specific questions about state or federal tax credits, please contact your State Historic Preservation Office or the National Park Service, respectively.
Submitted by National Trust at: August 23, 2010
Carol, contact your state historic preservation office (SHPO) to see if there are any grants or tax credits available to you. Go to http://www.preservationnation.org/contacts/ to find their contact info. Kendy, you also might try contacting your SHPO (see the link above) or the National Park Service, www.nps.gov. gp, check the criteria for the National Register of Historic Places at this link, http://www.nps.gov/nr/national_register_fundamentals.htm and contact your SHPO.
Submitted by Carol at: August 22, 2010
What tax credits or grants are available for a house that is 1917 and on a more local historic registry. Wiring is my first priority.
Submitted by gp at: July 19, 2010
What qualifies as historic, just old? Our home is over 150 years old.
Submitted by Kendy at: June 27, 2010
I have read that there are some historical buildings that can be obtained for free or for a very low price if purchased or obtained to save the building by restoring it. Where would one search to find such historical buildings at the very low prices I read about? Kendra H.
Submitted by Louise at: June 10, 2010
Over the past three weeks, I have spent time in rural KY, MT, WY, and ID. The loss of historic structures, from homes, to commercial property, to barns, is disturbing. The influx of mobile homes in rural America is overtaking the landscape as historic structures fall down. Is there a national movement to change this momentum? The current tax incentives are so small that they don't make a difference.
Submitted by jo at: March 10, 2010
The Greenwich Preservation Trust mission is to educate for preservation of our historic and cultural resources. Preservation incentives are an excellent planning and land use tool to reach that goal
Submitted by national trust at: March 8, 2010
CB, contact our Naitonal Main Street Center at 202-588-6219 as they answer alot of questions about parking. You might also contact the National Alliance of Preservation Commissions (do a google search for their website).
Submitted by lee david at: March 5, 2010
lew and others, for answers to your specific questions about federal and state historic tax credits, you should contact your state historic preservation office or the national park service. use this link for your SHPO contact info, www.preservationnation.org/contacts/ and this one for the NPS, www.nps.gov/hps/tps/tax/
Submitted by CB at: March 3, 2010
How can one ppreserve an historic neighborhood that is being overwhelmed (more than 300 new "slots") by reverse angle parking? Guidelines for replacing with wood windows are met, but the streets are turned into one-way, RAP parking lots. HELP!
Submitted by lew at: February 15, 2010
Are State Historic tax credits taxable re Federal Income taxes?
Submitted by Historic Montrose at: December 30, 2009
If we use a protion of a historic property as an office for a foundation to support preservation of the property, does that qualify as an "income producing"purpose???
Submitted by Mohr barn at: December 22, 2009
Has been fixed at a cost of 45000.00
Submitted by lee david at: December 4, 2009
for more details about tax credits and whether your project is eligible, definitely talk to your state historic preservation office (they can help with info on both state and federal credits); go to this page for contact information, www.preservationnation.org/contacts/. Also take a look at the park service's website: http://www.nps.gov/history/HPS/TPS/tax/index.htm
Submitted by nanda at: November 28, 2009
can I get a tax credit for multifamily home built in 1845 in state of ct.
Submitted by Robyn C. at: November 11, 2009
The best bet for all of these comments is to enlist an architect with historic preservation experience. They can guide you through the tax credit process, which follows the Secretary of Interior Standards for Rehabilitation, in addition to coordinating with the construction process. Check your local AIA (American Institute of Architects) for recommendations. - Project Architect in Preservation Services at KANN Partners in Maryland (www.kannpartners.com)
Submitted by Debbie at: November 8, 2009
I want to make housing out of a historic building I own that is listed on the historic national registry now. Please send info.
Submitted by Richard at: October 17, 2009
my home was built in 1860 here in ma. curently used as an owner occpied two family what tax credits can i recive?
Submitted by Sandra at: October 15, 2009
I home is historic and was built in 1868 What is available for my property. bilt is Philadelphia,
Submitted by cheyenne at: October 12, 2009
tax relief - send information for tennessee
Submitted by nanalee at: October 12, 2009
Can I get a tax credit for my home built in l860. Needs work