Jointly managed by the National Park Service and the Internal Revenue Service
in partnership with State Historic Preservation Offices, the Historic Preservation
Tax Incentives program rewards private investment in rehabilitating historic
buildings. Prior to the program, the U.S. tax code favored the demolition
of older buildings over saving and using them. Starting in 1976, the Federal
tax code became aligned with national historic preservation policy to encourage
voluntary, private sector investment in preserving historic buildings.
How do tax incentives help?
The Historic Preservation Tax Incentives have proven an invaluable tool
in revitalizing communities and preserving the historic places that give
cities, towns, and rural areas their special character. The Historic Preservation
Tax Incentives generate jobs, both during the construction phase and in
the spin-off effects of increased earning and consumption. Rehabilitation
of historic buildings attracts new private investment to the historic core
of cities and towns and is crucial to the long-term economic health of
many communities. Enhanced property values generated by the Historic Preservation
Tax Incentives program result in augmented revenues for local and state
government through increased property, business, and income taxes. Historic
Preservation Tax Incentives also create moderate and low-income housing
in historic buildings.
Has this program been successful?
Since 1976, the Historic Preservation Tax Incentives have produced the
following benefits for the nation:
* more than 27,000 historic properties have been rehabilitated and
saved
* the tax incentives have stimulated private rehabilitation of over
$18 billion
* more than 149,000 housing units rehabilitated and 75,000 housing
units created, of which over 30,000 are low and moderate-income units.
