The Federal Historic Tax Credit (HTC) Program is a financial incentive administered by the National Park Service in partnership with the Internal Revenue Service. It encourages the preservation and rehabilitation of historic buildings by offering a 20% income tax credit for qualified rehabilitation expenses.
To qualify, a property must be listed in the National Register of Historic Places or be a contributing building within a registered historic district. Rehabilitation work must follow the Secretary of the Interior’s Standards for Rehabilitation, ensuring that the building’s historic character is preserved.
The credit is available for income-producing properties, including commercial, industrial, agricultural, and rental residential buildings. Projects must be substantial, meaning rehabilitation costs must exceed the building’s adjusted basis.
The application process includes three parts:
- Part 1: Evaluation of Significance
- Part 2: Description of Rehabilitation
- Part 3: Request for Certification of Completed Work
By offsetting project costs, the HTC Program makes historic preservation more financially viable while supporting economic development, job creation, and community revitalization.
Since the Federal Historic Tax Credit program began in 1976, more than 50,000 projects have been rehabilitated across the country, generating nearly $100 billion in private investment in historic buildings nationwide.
In Tennessee, buildings of almost every size and type imaginable have benefited from the Federal Historic Tax Credit (HTC) program, including bed and breakfasts, hotels, shotgun houses, former hospitals, and factory and mill complexes. Today, over 1,000 buildings in Tennessee have been rehabilitated using the ITC program, generating over $1.5 billion in investments in Tennessee’s historic buildings.
For more information, contact:
Justin Heskew | Tennessee Historical Commission
Historic Preservation Supervisor and Historic Tax Credit Reviewer
Justin.heskew@tn.gov | https://www.tn.gov/historicalcommission/federal-programs/tax-credit.html