Private residence eligibility

Can the 20% federal tax credit be used to rehabilitate an owner’s private residence?

Answer
No. The 20% credit is available only to properties rehabilitated for income-producing purposes, including commercial, industrial, agricultural, rental residential or apartment use. The credit cannot be used to rehabilitate your personal residence in which you live.

However, 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.

A house in Ellicott City, Maryland, is being primed and painted during rehabilitation for continuing rental residential use. Photo: NPS files

For More Information

IRS Information for the Historic Preservation Tax Incentives