Historic Tax Credits

State and federal historic tax credits are a critical tool for historic building rehabilitation and economic development throughout the United States. The federal government offers a 20% tax credit on qualified expenses for historic building rehabilitations nationwide, and many states, including Maine, Connecticut, Rhode Island, and Vermont, offer an additional, stackable state historic tax credit—providing up to a 40% total tax credit for historic building rehabilitations. Some projects can qualify for even further credits.

Historic tax credits: made simple

With extensive experience in the historic tax credit application and review process in New England, Jackson Preservation can help shepherd your historic tax credit project from planning through completion. In addition to completing all parts of the tax credit application, our integrated historic tax credit services also include:

Collaboration with your project team to ensure the project meets all state and federal review requirements to receive historic tax credits

Searching and applying for additional project funding through local, state, and federal grants, as applicable

Completing all regulatory review requirements for local, state, and federal preservation and environmental permitting

Jackson Preservation provides historic tax credit consulting services in the following states: Connecticut, Maine, New Hampshire, Rhode Island, and Vermont

Which expenses qualify for historic tax credits?

Expense type

Does qualify for tax credits

Does not qualify for tax credits

Window and door replacement/repair

Roof replacement/repair

HVAC, electrical, and plumbing work

Interior work, including new partitions, flooring, and ceilings

Structural repairs

Architect, developer, and preservation consultant fees

Site work

New construction (additions)

Furniture

How do I apply for historic tax credits?

The federal historic tax credit application consists of three parts. Many states also operate their own historic tax credit program, most of which mirror the three-part federal application. Our expert knowledge of the tax credit programs across New England helps your project progress efficiently, ensuring a timely application approval and reduction of overall costs.

The three parts of the federal historic tax credit application are:

Part 1:
Evaluation of Significance

Part 2:
Description of Rehabilitation

This part establishes the building's historic significance. It confirms, or initiates the process of, its listing on the National Register of Historic Places. (Listing on the National Register is a requirement of the historic tax credit program).

If your building is not listed on the National Register, Jackson Preservation will write your entire National Register nomination.

This part explains the rehabilitation work to be done to the historic building. It includes photographs of the building and a detailed narrative describing how the proposed changes meet the Secretary of the Interior's Standards for Rehabilitation. (To meet these "standards," the rehabilitation must maintain the building's character defining historic features as much as possible.)

Jackson Preservation will work with your project team during the design development phase to ensure that your project meets the required rehabilitation standards to receive historic tax credits.

Construction phase

Jackson Preservation will monitor the project and continue to ensure that the work meets the required standards to receive historic tax credits once work is complete.

Part 3:
Certification of Completed Work

This part includes detailed photos of the completed project, which will show the officials reviewing the application that your work has met the standards.

Jackson Preservation will remain involved in your project through its completion. After we submit Part 3 of your application and it is approved by the state and federal reviewers, you will receive your historic tax credit certification.

Frequently asked questions

Who can claim historic tax credits?
Owners or long-term leases of income-producing historic buildings. Applicants frequently include private property owners, developers, and non-profits (who sell/syndicate their credits).

What if my tax burden isn't as large as the total credit my project is eligible for?
You can sell or syndicate your tax credits to investors, who will pay you slightly less than one dollar for each dollar of tax credits. In exchange for the investor using your credits on their tax return, you'll get their capital. This replaces what would have been borrowed money for the project.

Does my building need to be on the National Register of Historic Places in order to apply?
No, your building just needs to be deemed "eligible" for the National Register. (Jackson Preservation can complete your National Register eligibly assessment, if necessary.) The official National Register listing can occur after the project is complete.

What if my building has modern additions and updates? Does this mean it's ineligible for historic tax credits?
No, not necessarily. A variety of criteria are taken into account when determining if a building is eligible for the National Register and for historic tax credits.

When should I apply?
The federal historic tax credit program accepts applications on a rolling basis, and most state historic tax credit programs work similarly. However, it is strongly suggested that all applicants wait to begin construction work until their tax credit applicaions have been approved. Reach out to Jackson Preservation anytime to begin the application process.

Schedule a free preliminary historic tax credit consultation