If you’re a property owner who’s looking to renovate your historic building, then it’s important to know about the tax credits available to you. The Federal Historic Preservation Tax Incentives program is designed by the National Park Service and provides significant financial incentives for rehabilitating historic buildings.
This program offers two types of tax credits: one for income-producing properties and another for non-income producing properties. If you own an income-producing historic building, like a rental property or a commercial space, you can claim a 20% federal tax credit on qualified rehabilitation expenses (QREs). Meanwhile, if your historic property is not used for generating income, such as your primary residence, then you are eligible for a 20% personal tax credit as well.
To qualify for these credits, your building must meet certain criteria such as being listed in the National Register of Historic Places or located within a designated historic district. Additionally, any renovation work should follow guidelines set by the Secretary of Interior Standards.
Overall, taking advantage of these tax credits can be hugely beneficial in offsetting renovation costs while preserving our nation’s valuable historic architecture.