According to the Rutgers University's Center for Urban Policy Research, the  Federal Historic Preservation Tax Incentives Program contributed more than $12.2 billion in output in terms of goods and services to the U.S. economy and added $6.2 billion in gross domestic product in Fiscal Year 2017. The program is administered by the National Park Service and the Internal Revenue Service, in partnership with State Historic Preservation Offices. 
 

The Federal Historic Preservation Tax Incentives Program, commonly known as the Federal Historic Tax Credit program, provides a 20 percent federal tax credit to property owners who undertake a substantial rehabilitation of a historic building in a commercial or other income producing use, while maintaining its historic character.

The National Park Service certifies a building is historic, and therefore eligible for the program, and that the rehabilitation preserves the building's historic character. The tax incentives program has helped to revive abandoned or underutilized schools, warehouses, factories, churches, retail stores, apartments, hotels, houses, agricultural buildings, offices, and other buildings across the country, and in turn, has helped support the redevelopment of entire downtowns and neighborhoods. It also supports community revitalization, job creation, affordable housing, small businesses, farms and Main Street development, among other economic benefits.

According to the report, 50 percent of the certified rehabilitation projects were located in low and moderate income areas and more than 79 percent were located in economically distressed areas. Half of all projects were less than $1 million and 20 percent were less than $250,000. A quarter of all certified rehabilitation projects were located in communities with a population of less than 50,000 people and more than 15 percent in communities with a population less than 25,000 people.

In Fiscal Year 2017, program-related investments created approximately 107,000 jobs, including 38,000 in construction and 24,000 in manufacturing, generating  $2.0 billion  and $1.8 billion respectively.  As a result of both direct and multiplier effects, and due to the interconnectedness of the national economy, sectors not immediately associated with historic rehabilitation, such as agriculture, mining, transportation, and public utilities, benefited as well.

For our state the Alabama Historical Commission is the first point of contact for information and guidance for property owners interested in the program, and the National Park Service works closely with AHC in the administration of the program. For more information about the Federal Rehabilitation Tax Credit Program visit our website.