Historic Preservation Tax Credits

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The Texas Historical Commission administers two related tax credit programs for rehabilitation of historic buildings. Applicants are encouraged to apply to both programs together if they meet eligibility requirements for both.

• Federal Rehabilitation Tax Credits: The Federal Historic Preservation Tax Credit program offers a 20 percent income tax credit for the rehabilitation of historic, income-producing buildings.
• Texas Historic Preservation Tax Credit Program: The state tax credit program offers a 25 percent tax credit for the rehabilitation of historic, income-producing or non-profit use buildings. This credit can be sold, and may be used against Texas Business Franchise Tax OR Texas Insurance Premium Tax.

Read more detailed information about these two programs below.

Please visit our extensive Frequently Asked Questions page to find answers for most common tax credit queries.

Tax credit requirements, which include NPS and IRS regulations for the Federal credit, can appear confusing at times. THC staff is available to assist property owners in understanding and applying for the credits. Please note that THC staff cannot give tax advice. Consult a tax advisor regarding IRS regulations and their implications for your particular tax situation.

For information about other financial incentives available for historic buildings, such as grants, tax exemptions, and tax abatements, please visit Grants, Tax Credits, and Funding.