Federal, state, and local tax incentives exist for owners of historic properties. The Federal Historic Preservation Tax Incentives Program includes a 20 percent income tax credit for the rehabilitation of historic, income-producing buildings and a 10 percent income tax credit for rehabilitation of non-historic buildings. The new Texas Historic Preservation Tax Credit Program offers a 25 percent tax credit for the rehabilitation of historic buildings.
Additionally, a state sales tax exemption on labor is available for work to buildings listed in the National Register of Historic Places. County and local taxing authorities may grant property tax exemptions for buildings with state or local historical designations.
Historic photo of Dallas Post Office courtesy of 400 North Ervay.
Reinvested in the Texas economy through the federal rehabilitation tax credit program from 1979 to 2012
Tax Credit Workshop
The THC tax credit staff will be presenting an in-depth workshop at this year's Texas Downtown Association Conference in Killeen. This session will be held from 1:00-5:00pm on November 8th, 2016, and we welcome all interested parties to register!
Historic Tax Credit Workshop This 4-hour workshop will provide in-depth training on all major aspects of the Federal Historic Investment Tax Credits and the Texas Historic Preservation Tax Credit. Texas Historical Commission tax credit program staff will teach you about National Register listings and common issues related to historic designation, the Secretary’s Standards for Rehabilitation and what the THC looks for in a rehabilitation project, and important things to note when filling out and submitting applications. An additional panel of successful tax credit users will share their experiences in coordinating with the THC and local property owners, undertaking appropriate rehabilitation work, and using or selling the credits. This workshop is designed for property owners and developers who are considering using the tax credits, and Main Street Managers, historic preservation and economic development officers, or other local officials who would like to assist with tax credit projects in their communities. *Included with full conference registration. $50.00 fee to attend just this workshop. Register at the link below!
House Bill 3230 Passes
With the conclusion of the 84th Legislative Session in June 2015, a bill has officially been passed to extend eligibility for the Texas Historic Preservation Tax Credit program to non-profit use properties. This bill was introduced by Representative Rodriguez of Bexar County and received its final vote of approval in the Senate on May 24, 2015.
How does this new law change the tax credit program? Previously, non-profit owners could only participate in the program if they rehabilitated a for-profit property. Starting January 1, 2016, non-profit owners may receive tax credits for their own non-profit use properties. We are excited to welcome all new eligible applicants to our state tax credit program, and expect to update our published guidance documents as soon as possible.
Read the full text of the bill here: 84(R) HB 3230