The Federal Rehabilitation Tax Credit, otherwise known as the Historic Tax Credit, is one of the most powerful historic preservation tools we have. Recognizing the cost associated with 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 others.
Established first in 1976, since its inception, the tax credit has resulted in the preservation of more than 45,000 buildings and generated over $102 billion in estimated rehabilitation investment. In 2019 alone, 1,042 completed projects generated $5.7 billion in rehabilitation work and created 172,416 low and moderate income housing units. Recent studies have shown that far from being a subsidy, the historic tax credit actually stimulates more revenue than it costs – meaning it is a win-win for the American people.
SHPOs review Historic Tax Credit projects to assure their consistency with the Secretary of the Interior’s Standards and the National Park Service provides the final “certification” necessary for each project. To learn more about the Historic Tax Credit, visit the National Park Service website (http://www.nps.gov/tps/tax-incentives.htm), and the website of your SHPO.