Preservation & State Historic Tax Credits
To spur more private investment in older neighborhoods, 35 states have adopted laws creating credits against state taxes to provide incentives for the appropriate rehabilitation of historic buildings. (See map below.) Well-crafted state historic tax credit programs, such as those in Minnesota and Virginia, increase the number of federal rehabilitation projects. For example, Missouri's state tax credit doubled the usage of the federal incentive when it was put into place.
State historic tax credits increase the use of the federal historic tax credit. The presence of an active state tax credit program boosts the use of the federal credit on average between $15 and $35 million in certified expenditures according to research from the Washington Office of Planning. That means the states with active tax credit programs are bringing in between $3 to $7 million federal dollars, which would not otherwise be available, to the state.