Historical Tax Credits

Historic & Preservation Tax Credits The federal tax law offers incentives to taxpayers who contribute to the preservation of our nation's old and historic buildings. By rehabilitating directly in the rehabilitation of eligible buildings, you can take advantage of one of two tax credits. The federal income tax credit is equal to 20% of the cost of rehabilitating historic buildings or 10% of the cost of rehabilitating non-historic buildings constructed before 1936. These credits provide a dollar-for-dollar reduction of income tax owed. Buildings eligible for the 20% rehabilitation credit include those used for rental residential as well as nonresidential purposes. Buildings eligible for the 10% rehabilitation credit must be nonresidential, commercial and industrial buildings.