The Federal Historic Tax Credit (HTC) Program
The Federal Historic Preservation Tax Incentives program offers two tax credit options:
- 20% tax credit for certified rehabilitation of historic structures
The 20% tax credit equals 20% of a qualified project’s eligible rehab expenditures. The credit is available only for properties rehabilitated for income-producing purposes, including commercial, industrial, agricultural, rental residential or apartment use. If a portion of a personal residence is used for business, such as an office or a rental apartment, in some instances the amount of rehabilitation costs spent on that portion of the residence may be eligible for the credit.
- 10% tax credit for rehabilitation of non-historic, non-residential buildings built before 1936
The 10% rehabilitation tax credit equals 10% of the qualified rehabilitation expenditures spent to rehab a non-historic, pre-1936 building. The 10% rehabilitation tax credit requires only a single IRS tax form submission without any other federal or state involvement. Owners of buildings located in registered historic districts may claim the 10% tax credit only if they file Part 1 of the Historic Preservation Certification Application with the National Park Service and receive a determination that the building does not contribute to the historical significance of the historic district.