The Historic Tax Credit encourages private/public sector investment in the rehabilitation and re-use of historic buildings. Requirements for historic tax credits vary depending on the administering entity, whether it be the federal, a state, or a local government. Generally, a historic tax credit works by allowing property owners to apply a certain level of project expenditures used to refurbish historically significant structures or buildings within a historic district as a claim for tax credits on their tax returns to directly offset tax liabilities. The program has enhanced property values, created jobs, generated local, state, and federal revenues, and revitalized communities in need of economic development. These tax credits are not permanent and terms fluctuate; as such, they are different than new market tax credits.

• Publication date: April 2019