About Historic Rehabilitation Tax Benefits
The Federal Historic Preservation Tax Incentives program is designed to encourage private sector investment in the careful rehabilitation and thoughtful re-use of historic buildings that hold significant cultural value. Under IRC Section 47, a generous 20% income tax credit is available for the substantial rehabilitation of historic, income-producing buildings that are designated as “certified historic structures.”
Furthermore, Virginia’s Historic Rehabilitation Tax Credit program plays an essential role in preserving thousands of historic properties while contributing to the economic sustainability of communities throughout the Commonwealth. A Virginia income tax credit equal to 25% of eligible expenses is available for the rehabilitation of a certified historic structure, whether it is an owner-occupied residence or an income-producing property. It is important to note that the threshold requirements for the State program are different from the Federal requirements, offering specific criteria that must be met for successful participation.
Similarly, North Carolina's state tax credit for historic rehabilitation varies depending on the type of property. For income-producing historic properties, owners and developers may potentially receive a 15-25% state income tax credit for certified rehabilitations. For non-income-producing historic properties, homeowners may receive a 15% state tax credit for qualified rehabilitation of owner-occupied residential properties.
