Federal Rehabilitation Tax Credits

The Federal Historic Preservation Tax Incentives Program provides owners, as well as long term lease holders of certified historic structures an opportunity to receive a federal tax credit. 

In order to be eligible for the federal tax credit the certified historic structure must be income-producing.  The credit amounts to 20% of all qualified cost associated with the certified rehabilitation project.

The rehabilitation project must conform to the ‘Secretary of the Interior’s Standards for Rehabilitation’.  Rehabilitation plans must be approved prior to the commencement of the project.

The rehabilitation project must be ‘substantial’ which is defined as a minimum of $5,000 or the amount equal to the adjusted basis of the building, whichever is greater.  The rehabilitation project typically has to be completed within a 24 month period. 

For more information about Federal Tax Credits visit the National Park Service’s, Technical Preservation Services webpage: https://www.nps.gov/tps/tax-incentives.htm

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