News Release

Federal historic preservation tax incentives generated $7.7 billion in GDP and 135,000 jobs in 2021

The Cook County Hospital Administration Building after rehabilitation.

Torque

News Release Date: September 28, 2022

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WASHINGTON – The National Park Service (NPS) today announced that $8 billion of private investments in historic rehabilitation projects certified by the Federal Historic Preservation Tax Incentives Program contributed more than $15 billion of output in goods and services to the U.S. economy, generating approximately 135,000 jobs in adding an overall $7.7 billion in gross domestic product (GDP) in fiscal year 2021.  

The Federal Historic Preservation Tax Incentives Program, commonly known as the Historic Tax Credit, provides a 20% federal tax credit to property owners who undertake a substantial rehabilitation of a historic building in a commercial or other income-producing use while maintaining its historic character. Since its inception in 1976, the tax incentives program has leveraged $199 billion in private investment to rehabilitate over 47,400 historic properties, producing more than 3 million jobs, $428 billion in output, and $214 billion in GDP.  

“Private investments in historic preservation are helping to revive abandoned or underutilized buildings into affordable housing, offices, creative spaces, community athletic centers, and more,” said NPS Director Chuck Sams. “These projects promote community revitalization in our nation’s cities and towns, along main streets, and in rural areas, boosting the economy and creating thousands of jobs.” 

The program is administered by the NPS and Internal Revenue Service (IRS), in partnership with State Historic Preservation Offices. The NPS’s role is to certify that a building is historic, eligible for the program and that the rehabilitation preserves the building’s historic character. The IRS is responsible for administering the other aspects of the tax credit under the Internal Revenue Code. 

State Historic Preservation Offices are the first point of contact for information and guidance for property owners interested in the program, and the NPS works closely with them in the administration of the program. A breakdown by state of the economic impacts and other program information is included in the reports. 

Rehabilitation in Action 

• After a 20-year vacancy period, the Northwestern Branch, National Home for Disabled Volunteer Soldiers – also known as the Milwaukee Soldiers Home in Wisconsin – returned to its original purpose of housing and providing services for veterans. This wide-ranging public and private project preserved and rehabilitated six vacant historic buildings on the campus into 101 supportive housing units for veterans and their families who are homeless or at risk of becoming homeless. Residents have access to on-site services provided by the Milwaukee VA Medical Center.  

• In Chicago, Illinois, the Cook County Hospital Administration Building served Chicago’s indigent and underserved populations until its closure in 2002. Preservationists worked for the following two decades to promote the preservation and reuse of the imposing, block-long structure. After the rehabilitation, the building houses two hotels, medical offices, retail spaces, and a food hall.  

• The Powerhouse, Beloit College’s student center for recreation and health in Beloit, Wisconsin was once the home of the Beloit Water, Gas & Electric Company Powerhouse and Blackhawk Generating Station. The new design retains the building’s architectural features and industrial equipment while incorporating new sustainable practices and lively gathering spaces that encourage students to mix with each other and the larger Beloit community.  

• As one of the largest private investment projects in Indiana, the Bottleworks District transformed the former Coca-Cola Bottling Plant into a hotel and mixed-use space for retail, offices, entertainment, and food. The private and public partners involved in this project did more than revive the historic building, they helped fund environmental remediation and the surrounding streets, sidewalks, and trails to connect the district to the downtown and nearby attractions.   

Fiscal Year 2021 Highlights and Reports  

According to this year’s report, developed by Rutgers University’s Center for Urban Policy Research, more than 40% of the certified rehabilitation projects were in low- and moderate-income areas, more than three-quarters of all projects were in economically distressed areas. Nineteen percent of the projects certified in FY21 were in communities of less than 25,000 people.  

Rehabilitated Housing Units  

Rehabilitated new or existing housing units: 16,245 (636,873 since 1977) 

Low- and moderate-income housing units: 7,220 (185,525 since 1977) 

Economic Benefit  

Program-related investments generated $2.5 billion in construction and $2.2 billion in manufacturing. As a result of both direct and multiplier effects, and due to the interconnectedness of the national economy, sectors not immediately associated with historic rehabilitation, such as agriculture, mining, transportation, and public utilities, benefited as well.  

Total estimated rehabilitation investment (Qualified Rehabilitation Expenditures): $7.2 billion  

Historic rehabilitation projects certified: 1,063 

Estimated total jobs created: 135,000 (48,000 jobs in construction and 30,000 jobs in manufacturing) 

Output (Goods and Services): $15 billion  

Gross domestic product: $7.7 billion  

Income created: $5.6 billion 

www.nps.gov

About the National Park Service. More than 20,000 National Park Service employees care for America's 423 national parks and work with communities across the nation to help preserve local history and create close-to-home recreational opportunities. Learn more at www.nps.gov, and on Facebook, Instagram, Twitter, and YouTube.