Federal Historic Preservation Tax Credits

Facade of a historic building with columns

Topics:

Historic Preservation

The Federal Historic Preservation Tax Incentives Program encourages private sector investment in the rehabilitation and repurposing of historic buildings. 

Roles & Responsibilities

The federal tax incentives program for Iowa properties is administered by the National Park Service (NPS) and the Internal Revenue Service (IRS) in partnership with the State Historic Preservation Office of Iowa. Each entity performs the following roles and responsibilities: 

Complete information is available with the Technical Preservation Services

Eligibility

There are four factors that can help you decide whether your rehabilitation project would meet the basic eligibility requirements for the 20% tax credit. The amount of credit available under this program equals 20% of the qualifying expenses of your rehabilitation.

  1. Meets Significance Requirements: The historic building is listed in the National Register of Historic Places or is certified as contributing to the significance of a registered historic district.
  2. Meets the Substantial Rehabilitation Test: The project must meet the substantial rehabilitation test.
  3. Meets the Secretary of the Interior’s Standards for Rehabilitation: The rehabilitation work is completed according to the Secretary of the Interior's Standards for Rehabilitation.
  4. Meets Income-Production Requirements: After rehabilitation, the historic building is used for an income-producing purpose for at least five years.

Before applying, consult your accountant or tax advisor to ensure the federal tax credit is beneficial to you. Certain income and other restrictions may have a bearing on whether you are able to use the credit. 

Internal Revenue Service administers the Department of the Treasury’s involvement with the Federal Historic Preservation Tax Incentives Program. The Internal Revenue Service has provided written guidance on these complex federal regulations.

Application Process

A three-part application is required to qualify for the 20% tax credit. The applications are reviewed by the State Historic Preservation Office and the National Park Service.

Application Parts

  1. Part 1 presents information about the significance and appearance of the building.
  2. Part 2 describes the condition of the building and the planned rehabilitation work. The proposed work will be evaluated based upon the Secretary of the Interior’s Standards for Rehabilitation — a set of 10 rules of practice.
  3. Part 3 of the application is submitted after the project is complete and documents that the work was completed as proposed. National Park Service approval of the Part 3 certifies that the project meets the Standards and is a certified rehabilitation.

Submit an Application

Please submit applications to the State Historic Preservation Office of Iowa using the ESHPO system. All applications must follow revised NPS electronic submission guidelines. Get started and check out ESHPO. Please review the ESHPO instructions found in the resources section below for assistance.

Resources