By either rehabilitating directly or investing in the rehabilitation of eligible buildings, taxpayers can take advantage of one or two historic tax credits.
Preservation Tax Credit
Historic Tax Incentives
The federal tax law offers an effective incentive to taxpayers who contribute to the preservation of our nation's old and historic buildings. By rehabilitating directly or investing in the rehabilitation of eligible buildings, taxpayers can take advantage of one of two tax credits.
The rehabilitation credit is available for historic and non-historic buildings used in a trade or business or held for the production of income. The federal income tax credit is equal to 20% of the cost of rehabilitating historic buildings. These credits provide a dollar-for-dollar reduction of income tax owed. Buildings eligible for the 20% rehabilitation credit include those used for rental residential as well as non-residential purposes.
ETS can help you reap the tax benefits of rehabilitation and preservation projects as well as all related incentives and processes.