20 % Tax Credit:     

The federal government offers a 20% tax credit equaling 20% of the amount spent in a certified rehabilitation of a certified historic structure. These credits may be used by the developer/owner or sold.  To secure the 20% investment tax credit for historic preservation, the building must be listed on the National Register of Historic Places (individually or as a contributing structure in a National Register district) and must be rehabilitated in accordance with the Secretary of Interior’s Standards for Rehabilitation.

10 % Tax Credit:

The 10% rehabilitation tax credit is available for the rehabilitation of non-historic buildings placed in service before 1936. Not all states have this program and many have varying requirements.  This program offers a 10% tax credit equaling 10% of the amount spent on a rehabilitation

Projects undertaken for the 10% credit must meet a specific physical test for retention of external walls and internal structural framework:

1. at least 50% of the building’s walls existing at the time the rehabilitation began must remain in place as external walls at the work’s conclusion, and

2. at least 75% of the building’s existing external walls must remain in place as either external or internal walls, and

3. at least 75% of the building’s internal structural framework must remain in place.

Back