Historical Tax Credits

The purpose of Historic Tax Credit (HTC) programs is to promote preservation and economic development by making adaptive reuse financially feasible. HTC programs exist at both the federal and state levels.

• Tax Credits are taken against income taxes owed, either at the federal or state level depending on the program being used.
• Federal Historic Tax Credit – there are two categories under which projects may qualify for the federal program:
  • 20% program - To comply with this program, which generates a tax credit equal to 20% of the qualified rehabilitation expense incurred in a project, a building must either: 1) be eligible to be listed on the National Register of Historic Places, or 2) be a contributing building located in a historic district. Buildings renovated under this program must comply with the Secretary of Interior's Standards for Historic Rehabilitation. These standards allow for fairly significant building modifications as long as the historic character of the building is preserved.
  • 10% Program – Buildings are eligible for this program that generates a tax credit of 10% of the total qualified rehabilitation expense for a project if they were built before 1936 but are not listed on the National Register of Historic Places. Renovation plans under this program do not have to comply with the Secretary of Interior's Standards.
• State Historic Tax Credit programs – Over 30 states throughout the U.S. now have historic tax credit programs that can be used in conjunction with the federal program. Please contact us if you would like to discuss available programs in your state.