Incentives Program
Until 1976 tax incentives were virtually non-existent for buildings on the National Register. Before 1976 the federal tax code favored new construction over the reuse of existing, sometimes historical, structures. After 1976 the tax code was altered to provide tax incentives which promote preservation of income-producing historic properties. The responsibility of ensuring that only rehabilitations that preserved the historic character of a building would qualify for the federal tax incentives fell to the National Park Service. Properties and sites listed on the Register as well as those considered contributing properties to a local historic district "approved by the Park Service" became eligible for the federal tax benefits.
Owners of properties listed on the National Register of Historic Places can be eligible for a 20% investment tax credit for the "certified rehabilitation of income-producing certified historic structures." The rehabilitation can be as commercial, industrial or residential, for rentals. The tax incentives program is operated by the Federal Historic Preservation Tax Incentives program, which is jointly managed by the National Park Service, SHPO, and the Internal Revenue Service. Aside from the 20% tax credit the tax incentive program offers a 10% tax credit for rehabilitation to owners of non-historic, non-residential buildings constructed before 1936.
The 20% tax incentive has very specific clauses indicating when it can be applied.The credit can be used for, "any project that the Secretary of the Interior designates a certified rehabilitation of a certified historic structure."
The NHPA made no distinction between properties listed on the National Register of Historic Places and those designated as National Historic Landmarks concerning qualification for tax incentives or grants. This was deliberate on the part of the 1966 act's authors, past experience had shown that categories of significance caused the lowest category to become expendable. Essentially, this reduced the Landmarks to little more than the "honor roll" of the National Register of Historic Places.
Read more about this topic: History Of The National Register Of Historic Places
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