Program overview

The program offers 25 percent of the total qualified rehabilitation expenditures (QREs) in the form of a dollar-for-dollar credit on Texas franchise tax or insurance premium tax. There is no required basis test, no recapture, and only a minimum expenditure of $5,000 to participate. In addition, non-profits may make use of the program unlike the federal credit. The credit mirrors the federal historic tax credit program, with a three-part application filed and approved by the SHPO: Part A certifies the building’s ability to be listed in the National or State Register of Historic Places, Part B details how the planned work meets the Secretary of the Interior’s Standards for Rehabilitation, and the Part C is the final certification after construction completion.

The program can be combined with the federal credit or undertaken as a state only application. State-only applicants can more readily phase projects to monetize a longer-term rehabilitation sooner, although there are review fees at Parts B and C for each phase. A combined federal and state application requires NPS approval for each phase in the form of a "phased advisory letter." The credits can be carried forward for five-years.


A 2017 addition to the program allows for state institutions of higher learning to participate. Like non-profits, these entities can sell earned credits to private companies that can use them against their state franchise or insurance premium tax. 

Who can use the credit?

The credit is freely transferable to any entity that pays Texas franchise tax or insurance premium tax. 

Featured projects


Alto 211

Dallas, TX
Office & Retail

Developer: Alterra International
Built: 1957-59
Project Costs: $13.5 million
HTC Equity: Over $5 million
Completion dATE: 2016


Adolphus Hotel

Dallas, TX
Hotel & Hospitality

Developer: Rockbridge Capital
Built: 1912
Project Costs: Over $55 million
HTC Equity: Over $13 million
Completion dATE: 2018


Crafting the Historic Tax Credit Deal
June 23, 2016 | ULI San Antonio

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