Federal, state, and local tax incentives exist for owners of historic properties. The Federal Historic Preservation Tax Incentives Program includes a 20 percent income tax credit for the rehabilitation of historic, income-producing buildings and a 10 percent income tax credit for rehabilitation of non-historic buildings. The new Texas Historic Preservation Tax Credit Program offers a 25 percent tax credit for the rehabilitation of historic buildings.
Additionally, a state sales tax exemption on labor is available for work to buildings listed in the National Register of Historic Places. County and local taxing authorities may grant property tax exemptions for buildings with state or local historical designations.
Historic photo of Dallas Post Office courtesy of 400 North Ervay.
State and local tax revenue generated by activity in the federal rehabilitation tax credit program in Texas between 1979 and 2011
Texas Historic Preservation Tax Credit Program
Texas Historical Commission staff are giving presentations on the new Texas Historic Preservation Tax Credit Program. To find upcoming sessions, search for Preservation Tax Incentives on the THC Calendar of Events.
Texas Project Featured in Journal of Tax Credits
The rehabilitation of the mid-century office building at 211 North Ervay in Dallas was highlighted in the September 2014 issue of the Novogradac Journal of Tax Credits. Threatened by demolition following decades-long vacancy, the building was named by Preservation Dallas to their 2004 list of Most Endangered Historic Places. Rehabilitation of the building was made financially viable through the federal and new state historic rehabilitation tax credits. The article, which details the work performed and the project financing, is available below.