Tax Credits

Historic tax credits can provide as much as 40% in gross equity to a real estate project. Especially in states that have their own HTC program, historic tax credits help transform formerly depressed properties and neighborhoods into vibrant, income-producing opportunities, both for investors and those living in the surrounding communities.

Federal Historic Rehabilitation Tax Credit

Does your building qualify for HTCs? Here are the basic requirements.

State Historic Rehabilitation Tax Credit

Most state tax credits follow the same general guidelines as federal historic credits from a review standpoint, but may also have slight differences in the basis test and how they are monetized. See if your state has a program.

Other Tax Credit Programs

In addition to the federal and state historic tax credit programs, others also are available for specific rehabilitation projects such as affordable housing properties and commercial and mixed-use developments in low-income neighborhoods. Our knowledgeable staff can explain how historic tax credits pair well with the Low-Income Housing Tax Credit (LIHTC) and New Markets Tax Credit Program (NMTC) to make the most of tax incentives for your project.

Affordable Housing Historic Tax Credit Certification

Portfolios of affordable housing projects in need of rehabilitation are prime candidates for historic rehabilitation tax credit equity infusion. In the current Low-Income Housing Tax Credit (LIHTC) equity environment, the historic tax credit equity can be the critical piece of financing that makes an affordable housing project feasible for owners rehabilitating existing affordable housing, and for new owners pursuing acquisition and rehabilitation.

New Market Tax Credits and Historic Tax Credit Certification

The federal New Markets Tax Credit Program (NMTC) is another tool used to complement the historic tax credit. Established by Congress in 2000, the NMTC program targets low-income communities and can be utilized by commercial and mixed-use real estate developments as long as less than 80% of the gross rental income on a building-by-building basis comes from residential dwelling units.