FHB Logo Facebook LinkedIn Email Pinterest Twitter X Instagram Tiktok YouTube Plus Icon Close Icon Navigation Search Icon Navigation Search Icon Arrow Down Icon Video Guide Icon Article Guide Icon Modal Close Icon Guide Search Icon Skip to content
Subscribe
Log In
  • How-To
  • Design
  • Tools & Materials
  • Restoration
  • Videos
  • Blogs
  • Forum
  • Magazine
  • Members
  • FHB House
  • Podcast
Log In
Preservation

Incentives for Old-House Preservation

Your old home may qualify for substantial tax credits at both federal and state levels.

Featured in Old House Journal
  • X
  • facebook
  • linkedin
  • pinterest
  • email
  • add to favorites Log in or Sign up to save your favorite articles
The late-19th-century porch also needed restoration. Photo by Michael Selbst.

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.”

The Butman–Waters House

A successful case in point: Alan November, an old-house lover in the historic seaside town of Marblehead, Massachusetts, went through this process of securing both federal and state tax credits for the 1806 Butman–Waters House in neighboring Salem.

Built by the celebrated housewright, architect, and carver Samuel McIntire (1757–1811), the house is located in the heart of Salem’s historic McIntire District, which is on the National Register of Historic Places. It is a Federal-era gem whose essential architecture November wanted to restore.

The first thing he did was to hire the firm of Helen F. Sides, Architect. Sides specializes in old-house “transformations” that value historic architectural details. She not only has experience with the very busy Salem Historical Commission, but also with the historic tax credit process.

She put November in touch with Doug Kelleher of Epsilon Associates, a Massachusetts-based firm that specializes in securing historic tax credits for their clients. It is, after all, important to restore old buildings not just for posterity’s sake but also—arguably more important—for the economic benefit to the local community.

Such essential architectural elements as the soaring spiral stair were saved in the 1806 Butman–Waters House in Salem, Massachusetts. Photo by Michael Selbst.

The main stair is embellished with original, McIntire-carved fretwork. Photo by Michael Selbst.

Community Benefits

According to Kelleher, “They say that for every dollar invested in the HTC program, $1.85 is invested back into the economy through jobs and other ripple effects.” It is a win–win proposition. As for the Salem Historic Commission, like most historic commissions, they are appreciative of property owners like Alan November.

Exquisite, Federal-era mantels in the house are verified as being by housewright and carver Samuel McIntire. All are original and have been restored. Photo by Michael Selbst.

His approvals went through, for the most part without a hitch. In fact, “The City of Salem Preservation Plan Update” (2015) states: “Encouraging and supporting developers who seek to utilize preservation tax credits for certified rehabilitation projects will be important.”

Although it was costly, Alan November does not regret his decision. “I knew that I was going to have to invest more than the market value of the house. But then I found out about these tax credits . . . that changes the investment from perhaps an emotional decision into a more justifiable decision.” He expects to get back close to 40 percent of rehab costs in combined federal and state tax credits by the end of the application process.

November purchased the Samuel McIntire-built Federal in late 2017. By mid-February 2019, tenants were set to move in. Thus, it took roughly one year to complete the rehabilitation of another important but at-risk old house in Salem.

“We’re still in the process and have secured 75 percent of the tax credits possible,” November reported. The combination of a forward-thinking old house lover, a savvy architect, an appreciative historical commission, and the tax credit consultant made it all worth it. Samuel McIntire would approve of the save.

What Exactly Is the Historic Tax Credit (HTC) Program?

Basically, at the federal level, an old house that is located in a certified historic district (or is individually listed) can qualify for up to 20 percent in tax credits on qualifying rehabilitation expenditures (QREs) during the restoration/renovation process.

If you happen to live in a state that also has its own rehabilitation tax incentive program (most do, except for many Western states), then you can qualify for additional credits. Remember, though: the historic property has to be income producing for at least five years.

The federal HTC program was almost scrapped in 2017 due to the Congressional tax overhaul. Although it is diminished, it remains safe for now, with changes still being studied by experts. The most significant amendment to the program, which is administered by the NPS and the Internal Revenue Service (IRS), is that the payout of the tax credits is now being done over five years instead of the former lump sum at completion of the restoration.

How Many States Have Their Own HTC Program?

As of 2019, according to the National Trust for Historic Preservation, 35 states have their own tax credit programs. In Virginia, for example, homeowners can qualify for up to 25 percent of eligible rehabilitation costs.

In Minnesota, it’s 20%; Mississippi, 25%; and Texas just upped its tax credit potential to 25%. Combined with the federal tax program, therefore, homeowners can potentially secure between 40 and 45% in tax credits depending on the state. The application process is quite detailed. There are three parts to it and most of the state HTC programs follow the same template as the federal one.

  • Part 1 covers the significance and appearance of the old building.
  • Part 2 describes the condition of the building and the planned rehabilitation expenditures.
  • Part 3 involves certifications of completed work, granted as each part of the project is completed and documented. In addition, there is an Amendment Application available for rehabilitation projects that need it.
The new kitchen is simple, modern—and rental market-ready. Photo by Michael Selbst.

The Process: DIY or Consultant?

Filling out the application is a very detailed and time-consuming process. A pro help might lead to securing more of the available tax credits. Also, the consultant has experience with other projects and details of the process, and the consultant already has established relationships with local and state historical commissions. The HTC program is highly competitive at both the federal and state levels.

If you are going to do it yourself:

  • Start the process early.
  • Contact your SHPO to find out if your old house has NR status or is a good candidate for it.
  • Know the application deadlines in your state.
  • Do not delay on documenting the pre-rehabilitation conditions—not only with photographs, but also with architectural drawings.
  • Do not start any work on the historic building before approvals have been granted by your local historic-district commission.

Preservation Lingo to Know

HTC — Historic Tax Credit program (federal and state levels) NR — National Register the National Register of Historic Places NPS — National Park Service
QRE(s) — Qualified rehabilitation expenditure(s): all costs from which the HTCs can be claimed. SHPO — State Historic Preservation Office(r) TPC — Total Project Cost

Helpful Links

Click Here to Learn How to Apply for National Register of Historic Places Designation Click Here to Reach the National Register Click Here to Learn More About NPS and Tax Incentives
Click Here to Reach the National Trust for Historic Preservation Click Here for Tips on Hiring Consultants and Architects Click Here to Reach the Historic Tax Credit Coalition

— Written by Maggie Meahl; a Massachusetts-based historian and writer.

RELATED STORIES

  • A Greene & Greene House Restored
  • Restoring a House of Wood and Stone
  • A Barber Queen Anne Victorian

Fine Homebuilding Recommended Products

Fine Homebuilding receives a commission for items purchased through links on this site, including Amazon Associates and other affiliate advertising programs.

All New Bathroom Ideas that Work

Everyone wants their bathrooms to be beautiful, but few know the challenge of arranging all the fixtures, storage, and convenience of a great bathroom into one of the smallest space in our homes. This book has hundreds of ideas to inspire you.
Buy at Amazon

Code Check 10th Edition: An Illustrated Guide to Building a Safe House

It would be great if this book didn’t need to exist, but it's definitely a must-have. It's a one-size-fits-all code book that's easy to understand and will help you sail through your inspections.
Buy at Amazon

Graphic Guide to Frame Construction

Now in it’s 5th edition, Rob Thallon’s book for builders has been a go-to resource for decades. This book features clear graphics that will help you understand how nearly all American houses are — or should be — built.
Buy at Amazon

Sign up for eletters today and get the latest how-to from Fine Homebuilding, plus special offers.

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters
×

Get home building tips, offers, and expert advice in your inbox

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters

New Feature

Fine Homebuilding Forums

Ask questions, offer advice, and share your work

  • X
  • facebook
  • linkedin
  • pinterest
  • email
  • add to favorites Log in or Sign up to save your favorite articles

Log in or create an account to post a comment.

Sign up Log in

Become a member and get full access to FineHomebuilding.com

More Preservation

View All
  • Breathing New Life into Original Windows
  • What to Know When Buying Kitchen Cabinetry
  • Historic Preservation Month 2025
  • Preservation Meets Today’s Tastes & Modern Lifestyle
View All

Up Next

Video Shorts

Featured Story

Fight House Fires Through Design

Smart construction decisions and material choices can significantly improve occupant safety and survival in the event of a fire in the home.

Featured Video

How to Install Exterior Window Trim

Learn how to measure, cut, and build window casing made of cellular PVC, solid wood, poly-ash boards, or any common molding material. Plus, get tips for a clean and solid installation.

Related Stories

  • Midcentury Home for a Modern Family
  • The New Old Colonial
  • Modern and Minimal in the Woods
  • Bryce Hollingsworth, Dry-Stone Waller

Discussion Forum

Recent Posts and Replies

  • |
  • |
  • |
  • |
  • |
  • |
View More Create Post

Highlights

Fine Homebuilding All Access
Fine Homebuilding Podcast
Tool Tech
Plus, get an extra 20% off with code GIFT20

"I have learned so much thanks to the searchable articles on the FHB website. I can confidently say that I expect to be a life-long subscriber." - M.K.

Get home building tips, offers, and expert advice in your inbox

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters

Video

View All Videos
  • FHB Podcast Segment: Can You Have Too Many Minisplits?
  • FHB Podcast Segment: Finding Hazardous Materials in a Fixer-Upper
  • FHB Podcast Segment: Embodied Greenhouse Gas Emissions and the Building Codes
  • FHB Podcast Segment: Roofing on Commercial vs. Residential Buildings
View All

Restorations

View All Restorations Articles
  • From Victorian to Mid-Century Modern: How Unico Fits Any Older Home
  • Vintage Sash Windows Get an Energy-Efficient Upgrade
  • Mortar for Old Masonry
View All Restorations Articles

Fine Homebuilding Magazine

  • Issue 333 - August/September 2025
    • A Practical Perfect Wall
    • Landscape Lighting Essentials
    • Repairing a Modern Window Sash
  • Issue 332 - July 2025
    • Custom Built-ins With Job-Site Tools
    • Fight House Fires Through Design
    • Making the Move to Multifamily
  • Issue 331 - June 2025
    • A More Resilient Roof
    • Tool Test: You Need a Drywall Sander
    • Ducted vs. Ductless Heat Pumps
  • Issue 330 - April/May 2025
    • Deck Details for Durability
    • FAQs on HPWHs
    • 10 Tips for a Long-Lasting Paint Job
  • Issue 329 - Feb/Mar 2025
    • Smart Foundation for a Small Addition
    • A Kominka Comes West
    • Making Small Kitchens Work

Fine Home Building

Newsletter Sign-up

  • Fine Homebuilding

    Home building tips, offers, and expert advice in your inbox.

  • Green Building Advisor

    Building science and energy efficiency advice, plus special offers, in your inbox.

  • Old House Journal

    Repair, renovation, and restoration tips, plus special offers, in your inbox.

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters

Follow

  • Fine Homebuilding

    Dig into cutting-edge approaches and decades of proven solutions with total access to our experts and tradespeople.

    Start Free Trial Now
    • Facebook
    • Instagram
    • X
    • LinkedIn
  • GBA Prime

    Get instant access to the latest developments in green building, research, and reports from the field.

    Start Free Trial Now
    • Facebook
    • YouTube
  • Old House Journal

    Learn how to restore, repair, update, and decorate your home.

    Subscribe Now
    • Facebook
    • Instagram
    • X
  • Fine Homebuilding

    Dig into cutting-edge approaches and decades of proven solutions with total access to our experts and tradespeople.

    Start Free Trial Now
    • Facebook
    • Instagram
    • X
    • LinkedIn
  • GBA Prime

    Get instant access to the latest developments in green building, research, and reports from the field.

    Start Free Trial Now
    • Facebook
    • YouTube
  • Old House Journal

    Learn how to restore, repair, update, and decorate your home.

    Subscribe Now
    • Facebook
    • Instagram
    • X

Membership & Magazine

  • Online Archive
  • Start Free Trial
  • Magazine Subscription
  • Magazine Renewal
  • Gift a Subscription
  • Customer Support
  • Privacy Preferences
  • About
  • Contact
  • Advertise
  • Careers
  • Terms of Use
  • Site Map
  • Do not sell or share my information
  • Privacy Policy
  • Accessibility
  • California Privacy Rights

© 2025 Active Interest Media. All rights reserved.

Fine Homebuilding receives a commission for items purchased through links on this site, including Amazon Associates and other affiliate advertising programs.

  • Home Group
  • Antique Trader
  • Arts & Crafts Homes
  • Bank Note Reporter
  • Cabin Life
  • Cuisine at Home
  • Fine Gardening
  • Fine Woodworking
  • Green Building Advisor
  • Garden Gate
  • Horticulture
  • Keep Craft Alive
  • Log Home Living
  • Military Trader/Vehicles
  • Numismatic News
  • Numismaster
  • Old Cars Weekly
  • Old House Journal
  • Period Homes
  • Popular Woodworking
  • Script
  • ShopNotes
  • Sports Collectors Digest
  • Threads
  • Timber Home Living
  • Traditional Building
  • Woodsmith
  • World Coin News
  • Writer's Digest
Active Interest Media logo
X
X
This is a dialog window which overlays the main content of the page. The modal window is a 'site map' of the most critical areas of the site. Pressing the Escape (ESC) button will close the modal and bring you back to where you were on the page.

Main Menu

  • How-To
  • Design
  • Tools & Materials
  • Video
  • Blogs
  • Forum
  • Project Guides
  • Reader Projects
  • Magazine
  • Members
  • FHB House

Podcasts

  • FHB Podcast
  • ProTalk

Webinars

  • Upcoming and On-Demand

Podcasts

  • FHB Podcast
  • ProTalk

Webinars

  • Upcoming and On-Demand

Popular Topics

  • Kitchens
  • Business
  • Bedrooms
  • Roofs
  • Architecture and Design
  • Green Building
  • Decks
  • Framing
  • Safety
  • Remodeling
  • Bathrooms
  • Windows
  • Tilework
  • Ceilings
  • HVAC

Magazine

  • Current Issue
  • Past Issues
  • Magazine Index
  • Subscribe
  • Online Archive
  • Author Guidelines

All Access

  • Member Home
  • Start Free Trial
  • Gift Membership

Online Learning

  • Courses
  • Project Guides
  • Reader Projects
  • Podcast

More

  • FHB Ambassadors
  • FHB House
  • Customer Support

Account

  • Log In
  • Join

Newsletter

Get home building tips, offers, and expert advice in your inbox

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters

Follow

  • X
  • YouTube
  • instagram
  • facebook
  • pinterest
  • Tiktok

Join All Access

Become a member and get instant access to thousands of videos, how-tos, tool reviews, and design features.

Start Your Free Trial

Subscribe

FHB Magazine

Start your subscription today and save up to 70%

Subscribe

Enjoy unlimited access to Fine Homebuilding. Join Now

Already a member? Log in

We hope you’ve enjoyed your free articles. To keep reading, become a member today.

Get complete site access to expert advice, how-to videos, Code Check, and more, plus the print magazine.

Start your FREE trial

Already a member? Log in

Privacy Policy Update

We use cookies, pixels, script and other tracking technologies to analyze and improve our service, to improve and personalize content, and for advertising to you. We also share information about your use of our site with third-party social media, advertising and analytics partners. You can view our Privacy Policy here and our Terms of Use here.

Cookies

Analytics

These cookies help us track site metrics to improve our sites and provide a better user experience.

Advertising/Social Media

These cookies are used to serve advertisements aligned with your interests.

Essential

These cookies are required to provide basic functions like page navigation and access to secure areas of the website.

Delete My Data

Delete all cookies and associated data