Federal Historic Tax Credits (HTC), which are also referred to as Historical Tax Credits and Historic Rehabilitation Tax Credits, make restoring historic buildings economically viable. They do so by encouraging the preservation and adaptive reuse of certified historic buildings, primarily in low- and moderate-income census tracts and economically distressed areas, via private investment. Since the program’s inception in 1976, more than 44,000 historic properties throughout the United States have been preserved and over 2.5 million jobs created.
Previously, the HTC program consisted of two separate tax credits: 1) a 20% credit for the rehabilitation costs of buildings listed on the National Register of Historic Places; and 2) a 10% credit for the rehabilitation of non-historic, non-residential buildings built before 1936.
In December 2017, however, a federal tax bill was passed that retained the 20% Historic Tax Credit for certified rehabilitation of historic structures but eliminated the 10% tax credit. The 20% Historic Tax Credit must be claimed at a rate of 4% per year over a five-year period