Federal Historic Preservation Tax Credit

 Federal Historic Preservation

Tax Incentives

Federal Income Tax Credit Information

Federal Historic Preservation Tax Credit – the benefit is 20% of the renovation cost as an income tax credit (can also be sold on a secondary market) with no cap. The project must be income producing, a substantial renovation and either be landmarked, in a historic district or contributing to one of those (you can check here: http://nrhp.focus.nps.gov/natreghome.do?searchtype=natreghome)

NY State Historic Preservation Commercial Tax Credit – An additional 20% of the renovation cost as a state income tax credit is available – Automatically qualifies if the property qualifies for the federal AND is in a qualifying census tract (90% of Brooklyn and Queens, 20% of Staten Island and maybe 50% of Manhattan qualifies). You can check here: http://www.oprhp.state.ny.us/nr/main.asp

The Façade Easement Program – This is a federal tax deduction (not credit) for donating an easement containing the façade and occasionally the air rights to an architectural trust. It is valued at the difference between the appraised value of the building with and without the easement which is to a degree arbitrary and therefore this credit is scrutinized by the IRS fairly seriously. 

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