The Federal Historic Preservation Tax Incentives Program encourages private-sector investment in the rehabilitation and re-use of historic buildings. Commonly referred to as the federal historic tax credit program, it provides a 20-percent federal income tax credit to property owners who undertake a substantial rehabilitation of a historic building in a business or income-producing use, while maintaining its historic character.
The program is the single largest federal program that specifically supports historic preservation and is one of the nation’s most effective programs to promote historic preservation and community revitalization, having generated billions of dollars in private investment in historic rehabilitation since the program’s inception in 1976.
Across the country, the tax incentives program has helped to revive abandoned or underutilized schools, warehouses, factories, churches, retail stores, apartments, hotels, houses, agricultural buildings, offices, and other buildings, and, in turn, has helped support the redevelopment of entire downtowns and neighborhoods. It also supports community revitalization, job creation, affordable housing, small businesses, farms and Main Street development, among other economic benefits.