Historic Tax Credits
Federal and state historic tax credits are available to qualifying properties to further incentivize historic preservation and adaptive reuse projects.
Federal Tax Credits
A 20% income tax credit is available for the rehabilitation of qualifying, historic, income-producing properties. All work must adhere to the Secretary of the Interior’s Standards for Rehabilitation. Contact your accountant or tax advisor to ensure this federal tax credit is beneficial to you. Additionally, consult the NC State Historic Preservation Office before beginning a rehabilitation. Click here to learn more about federal historic tax credits.
State Tax Credits
North Carolina provides a base 15% state tax credit for qualifying rehabilitation projects on income-producing historic properties. Some properties may qualify for bonus credits, up to 25%. Click here to learn more about tax incentives for income-producing, historic properties.
North Carolina also provides a 15% state tax credit for qualifying rehabilitation of historic, owner-occupied residential properties. Rehabilitation of the historic structure must exceed $10,000 within a 24 month period. Click here to learn more about tax incentives for non-income-producing, historic properties.
Local Effects of Historic Tax Credits
In Wilmington, rehabilitated buildings using the federal historic preservation tax credits include the 1915 Knights of Pythias Castle, now used as Monteith Construction’s offices, the 1897 Solomon Building, soon to be Seabird Restaurant, and the 1903 Richter Building, now a film production company (and winner of a 2020 Preservation Award!).
Since 1976, over 4,000 historic structures in North Carolina have been rehabilitated using federal and state historic preservation tax credits. These projects represent over $3.25 billion dollars of private investment in historic properties. In HWF’s mission area, 169 projects (totaling over $42 million dollars in private investment) have been completed since 1976.
Historic Tax Credits in NC
North Carolina is one of thirty-nine states that offers an additional state piggyback historic tax credit. Since 1976, over 4,000 historic structures in North Carolina have been rehabilitated using federal and state historic preservation tax credits. These projects represent over $3.25 billi66on dollars of private investment in historic properties. During fiscal year 2019, North Carolina ranked fourth in the nation in total private investment for completed historic preservation tax credit projects, totaling $381.2 million dollars. In North Carolina’s 7th Congressional District, 287 projects (totaling over $75 million in private investment) have been completed since 1976, using both the federal and state historic preservation tax credits. Within the Historic Wilmington Foundation’s mission area, 166 projects (totaling over $42 million dollars in private investment) have been completed in New Hanover County using the federal tax credits. Additionally, 2 projects (totaling $159,000 in private investment) have been completed in Brunswick County, and 1 project (totaling $97,000 in private investment) has been completed in Pender County using the federal tax credits. Click here to read the NC State Historic Preservation Office’s 2021 Report on Historic Tax Credits in North Carolina.
HWF believes in the power of historic tax credits to preserve and protect the irreplaceable. That’s why we advocated for HTC-GO, which improved the Federal Historic Tax Credit Program to meet the realities of the COVID-19 pandemic. Unfortunately, the House of Representatives did not include the tax credit legislation in their Build Back Better legislation (H.R. 5376). Currently, the Build Back Better legislation is stalled in the Senate.
Below, you’ll find links to HWF Executive Director Travis Gilbert’s letters to our Congressional delegation: