Federal and State Historic Preservation Tax Credits

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Status: Available

Summary

Federal and State Historic Preservation tax credits are awarded to income producing real properties listed on the National Register of Historic Places.

Tenant Eligibility Criteria

All populations are eligible.

Eligible Applicants

The credit is available to owners of historic commercial, office, industrial or rental residential buildings. Generally speaking, private homes do not qualify.

Projects must meet both State and Department of Interior review. Basic requirements are:

• Building must be listed or capable of being listed on the National Register of Historic Places
• The amount spent on the rehabilitation must be equal to or greater than the present value of the building, not including the land
• Building must pass a review by SHPO and National Parks Service and meet historic preservation standards.

For state credits: Needs to be located in eligible census tract.

Amount

Up to 20% of rehab costs.

Term

The owner must hold the building for 5 years after completing the rehab. Once a building has been declared historic, it must remain so in perpetuity. Any future rennovations must be approved by SHPO.

Network Notes

• The tax credits may be bundled and sold by a nonprofit developer or a limited partnership between a nonprofit and for-profit developer. After the tax credits are released, the developer has two years to complete the work. If more time is needed, the project may be submitted in phases over a five-year term.
• Historic credits may be used in conjunction with State Low-Income Housing Credits (SLIHC) and/or federal Low Income Housing Tax Credits (LIHTC). 

Last updated: 08/29/2019

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