Incentives For Preservation

Not every old house is destined for restoration in full period style. But more can be saved from demolition if tax credits are used to justify rehabilitation costs.

- Maggie Meahl

Are you thinking of purchasing an old house that’s in an historic district, or eligible for National Register status? Did you know that your investment could qualify for substantial tax credits at both federal and state levels?

Although it’s a somewhat time-consuming and detailed process, applying for historic tax credits is definitely worthwhile for those willing to use a historic building as an income-producing property for a minimum of five years. After that, you the owner can move right in. According to the National Park Service website (the NPS runs the program): “. . . if a portion of a personal residence is used for business, such as an office or a rental apartment, in some instances the amount of rehabilitation costs spent on that portion of the residence may be eligible for the credit.”