A developer who holds title to a historic eligible property may take advantage of a 20% tax credit by investing in historic preservation/restoration work. Properties listed on the National Register of Historic Places are potentially eligible for direct income tax credits if the following factors are met:
- The historic building must be listed in the National Register of Historic Places or be certified as contributing to the significance of a "registered historic district;"
- The project must meet the "substantial rehabilitation test" (i.e., the cost of rehabilitation must exceed the pre-rehabilitation cost of the building);
- The rehabilitation work must be done according to the Secretary of the Interior's Standards for Rehabilitation; and
- After rehabilitation, the historic building must be used for an income-producing purpose for at least five years.
Owner-occupied residential properties do not qualify for the federal rehabilitation tax credit. Properties must be currently listed, in process of nomination or successfully nominated upon completion of the work in order to be eligible. To Learn More click here.
If you have any questions regarding the National Register of Historic Places Tax Credits, please contact the Planning Division at [email protected] or at (707) 648-4326.