What is the 20% tax credit?

This historic train station in Washington, DC, was rehabilitated for use as a retail center and intermodal transportation facility. Photo: NPS files

What is the 20% tax credit for rehabilitating historic buildings? How long has this credit been available?

Answer
The FEDERAL HISTORIC PRESERVATION TAX INCENTIVES PROGRAM–the 20% tax credit–began in 1976. Since that time, the National Park Service (NPS) has administered it in partnership with the Internal Revenue Service (IRS) and with State Historic Preservation Offices (SHPOs). To date tens of thousands of rehabilitation projects have been approved, representing billions of dollars in private investment.

One of the federal government’s most successful and cost-effective community revitalization programs, the Preservation Tax Incentives reward private investment in rehabilitating historic properties such as offices, rental housing, and retail stores. Abandoned or under-used schools, warehouses, factories, churches, retail stores, apartments, hotels, houses, and offices in many cities have been restored to life in a manner that retains their historic character. The Preservation Tax Incentives have also helped to create moderate and low-income housing in historic buildings.