The Federal Historic Tax Credit (HTC) encourages the preservation and reuse of the nation’s built environment by offering federal tax credits to the owners of historic properties. The tax credits represent a dollar-for-dollar reduction of federal taxes owed. Since its inception in 1978, the credit has encouraged the rehabilitation of more than 38,000 historic properties representing nearly $100 billion in private investment. This approach to community revitalization has been so successful that nearly half the states now have similar programs.
Certified historic structures are eligible for a credit equal to 20 percent of the cost of rehabilitation. Properties built before 1936 that are not eligible for individual listing on the National Register of Historic Places, nor eligible for inclusion in a certified historic district (considered non-historic, non-contributing structures) are eligible for a credit equal to 10 percent of the cost of rehabilitation.