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Federal Historic Tax Credits

A Financial Incentive for the Rehabilitation of Historic Buildings and Downtowns

Established in 1976, the federal Historic Tax Credit (HTC) is available for the rehabilitation of historic, income-producing buildings that are determined by the Secretary of the Interior, through the National Park Service, to be “certified historic structures.”

HTC Program for the Rehabilitation of Historic, Income-Producing Buildings

Established in 1976, the federal Historic Tax Credit (HTC) is available for the rehabilitation of historic, income-producing buildings that are determined by the Secretary of the Interior, through the National Park Service, to be “certified historic structures.” State Historic Preservation Offices and the National Park Service review the rehabilitation work to ensure that it complies with the Secretary’s Standards for Rehabilitation.
The federal historic tax credit program is also a significant financial incentive for the reuse of historic buildings and revitalization of historic downtowns. Current federal tax incentives for historic preservation were established by the Tax Reform Act of 1986 and include:
  • A 20 percent tax credit of Qualified Rehabilitation Expenditures (QREs) for the cost incurred during the rehabilitation of a certified historic structure for commercial, agricultural, industrial or residential rental purposes.
  • A 10 percent tax credit of QREs for the costs incurred during the rehabilitation of an older, non-residential building built before 1936 that is not yet listed as a certified historic structure.

Additional Information

We are here to help you with any questions you might have. Feel free to submit a Free Project Analyis Request for more detailed information regarding your specific scenario.

State Historic Tax Credits with Incentives

In addition to the federal HTC program, many states offer additional incentives, including:

STATEPERCENT (At Least)
Alabama25%
Arkansas25%
Colorado20%
Connecticut25%
Delaware20%
Georgia25%
Illinois25%
Iowa25%
Kansas25%
Kentucky30%
Louisiana25%
Maryland20%
Massachusetts20%
Minnesota90%
Mississippi25%
Missouri25%
Montana25%
Nebraska20%
New Mexico50%
New York20%
North Dakota25%
Ohio25%
Oklahoma20%
Pennsylvania25%
Rhode Island20%
South Carolina25%
Tennessee25%
Texas25%
Utah20%
Vermont10%

HTC Qualification Criteria

The property must be a “certified historic structure,” including:
  • A listing in the National Register of Historic Places;
  • A building located in a registered historic district and certified by the National Park Service as contributing to the historic significance of that district;
  • An older, non-residential building built before 1936 that is not yet formally listed as a certified historic structure.

Does Your Project Qualify for Low-Cost Financing or New Markets Tax Credits?

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Our Financing Programs

The CBO Financial team specializes in helping project sponsors secure flexible, below-market financing with a focus on high-impact projects in low-income communities. Our financial experts are skilled at combining public and private funding sources so that projects that might have otherwise stalled can move forward quickly and cost-effectively.

We’ve financed over $1 billion in high-impact investments nationwide, including $150 million using New Markets Tax Credits awarded to a CBO subsidiary. Backed by powerful funding tools and expertise, you’ll be pushed through to the finish line.

New Markets Tax Credits

A federal subsidy program designed to revitalize distressed communities by providing forgivable gap financing for up to 25% of costs for high-impact projects.
New Markets Tax Credits

Capital Magnet Fund

Grants up to $15M to CDFIs and nonprofit housing organizations to finance affordable housing and related economic development activities.
Property Assessed Clean Energy Financing

Bond Guarantee Program

A program that provides CDFIs with access to long-term, low-cost capital by guaranteeing bonds issued by qualified CDFIs, providing fixed rate financing for up to 29 years at ~100 bps over Treasuries.
Federal Historic Tax Credits

Technical Assistance Awards

Grants up to $125K to startup and existing CDFIs to build capacity to serve low-income communities by funding activities such as staff training, technology purchases, and consulting services.
Community Development Financial Institutions

Financial Assistance Awards

Matching grants up to $2M awarded to CDFIs to enhance their ability to provide loans, investments, and financial services to underserved populations.
US Department of Agriculture

Small Dollar Loan Program

Up to $500K to provide a loan loss reserve to support making affordable consumer loans to low-income individuals for up to $2,500, helping them avoid predatory lending practices.
Redevelopment Assistance Capital Program

CDFI Certification

A designation for specialized financial institutions that provide financial products and services in low-income communities and to targeted populations that lack access to financing.
Puerto Rico Financing Programs

EPA Programs

Community Change Grant Program

A $10M to $40M grant program that supports community-led projects aimed at improving environmental and public health outcomes in underserved communities.
New Markets Tax Credits

Clean Communities Investment Accelerator

Provides community lenders with grants up to $11M to help accelerate investment in clean energy and sustainable infrastructure projects in low-income communities.
Property Assessed Clean Energy Financing

National Community Investment Fund

Loans and guarantees will be made directly to projects with this funding starting in early 2025.
Federal Historic Tax Credits

USDA Programs

Business & Industry

A program that provides loan guarantees up to $25M to rural businesses to improve, develop, or finance business, industry, and employment.
New Markets Tax Credits

Community Facilities

A program that offers direct loans, loan guarantees, and grants to develop essential community facilities in rural areas up to $5M.
Property Assessed Clean Energy Financing

Rural Energy for America Program

A program that provides grants up to $1M and loan guarantees to agricultural producers and rural small businesses for renewable energy systems and energy efficiency improvements.
Federal Historic Tax Credits

Other Funding Programs

Federal Historic Tax Credits

The federal Historic Tax Credit is available for the rehabilitation of historic, income-producing buildings determined by the Secretary of the Interior, through the National Park Service, to be “certified historic structures” for approximately 20% of project costs.
New Markets Tax Credits

You see challenges. We see possibilities.
Your community sees change.

Established in 1999, CBO Financial is a financial consulting firm that specializes in helping businesses secure funding for development projects in the nation’s most distressed communities. Our experts understand how to present economic, environmental, and societal benefits to public and private organizations so your project receives the funding it needs to move forward quickly and reasonably. A CBO Financial subsidiary, Community Development Funding, LLC, has received six awards under the federal New Markets Tax Credit program totaling $150M. In addition the team has taken a leadership role in securing 18 awards for clients totaling over $400M.
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The funding is out there

CBO can be your access point for a variety of federal financing and subsidy programs, including those offered by the CDFI Fund, EPA, USDA and other agencies.
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 a Significant Impact

CBO is on a mission to help elevate the lives of people living in distressed communities by providing flexible, below-market gap financing to high-impact projects that cannot otherwise move forward. Does your project qualify for financing?
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Million-dollar stories

The CBO team has funded over $1 billion in projects for local and national nonprofits, for-profit developers, and municipal agencies. Our team can help you find the low-cost financing or new market tax credits needed for your projects.
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Does Your Project Qualify for Low-Cost Financing or New Markets Tax Credits?

Reach out to our specialists to discuss how we can work together.
Get a Free Project Analysis