Preservation :: Tax Credit Application

The Federal Historic Preservation Tax Program encourages rehabilitation of historic buildings as a means for facilitating cost-effective community revitalization. The Tax Credit Program allows historic commercial, office, industrial, or other income-producing buildings to be eligible for tax credits when rehabilitated according to guidelines set up to make sure that buildings are rehabilitated in such a way as to preserve historic integrity. These credits are available for buildings that are listed on the National Register of Historic Places or exist in a locally certified historic district. The federal program offers a 20% tax credit for these projects and can be used alone or in conjunction with the New York State Tax Credit Program for Income Producing Properties.

All tax credit projects must be approved by the NYS Office of Parks, Recreation, and Historic Preservation, preferably prior to the start of construction. An additional 20% NY State Tax Credit, valued up to $5,000,000 based on Qualified Reimbursable Expenses (QRE’s), is available for income producing projects.

A 20% NY State Historic Tax Credit is also available for primary residences in historic districts that meet the Secretary of Interior’s Standards for Rehabilitation, up to a maximum of $100,000 in credits.

Tax credits are one of several tools used to make revitalization projects more economically viable and have been used since the 1980’s for encouraging developers and property owners to invest in historic properties. In addition to being an incentive to developers and property owners to rehabilitate historic buildings, the use of tax credits enable rehabilitation and therefore enhancing local economic development by providing jobs while making it possible for historic buildings to remain functional and on the tax roll.

Johnson-Schmidt & Associates, Architects is skilled in the tax credit application and approval process, with over 29 years of experience with historic tax credits. Our firm is well versed and experienced in providing architectural services that meet the Secretary of Interior’s Standards for Rehabilitation – a requirement for receiving historic tax credits. There are many benefits to the tax credit program for both owners and communities; our firm can guide this process to allow owners to receive tax credits and therefore increase the economic viability of historic preservation projects, returning more of your investment as profit or reinvestment into the project.

For more information regarding the Tax Credit Program, visit: National Park Service U.S. Department of the Interior or New York State Office of Parks, Recreation, and Historic Preservation or visit our library page.