Federal Level Tax Credits

Federal Historic Rehabilitation Tax Credit–20%
Federal Agency: National Park Service, administered by the Minnesota State Historic Preservation Office (SHPO)

Recipients: Owners of commercial, industrial, agricultural, or rental residential properties

The Federal Government offers a variety of tax credits that assist preservation projects, notably a credit that is available only for rehabilitation of income-producing historic properties.  Under this historic preservation tax credit, property owners who rehabilitate historic buildings for commercial, industrial, agricultural, or rental residential purposes can receive a tax credit equal to 20 percent of the rehabilitation costs. The National Park Service must certify that the rehabilitation work meets the Secretary of the Interior’s Standards for Rehabilitation.

Other Federal tax credits can also be used in preservation projects and can be combined with the historic preservation tax credit.


Federal Rehabilitation Tax Credit for Non-Historic Commercial Buildings Built before 1936–10%

Federal Agency: Internal Revenue Service

 

The Internal Revenue Service offers up to a 10 percent tax credit for rehabilitation on commercial buildings not listed on the National Register and built before 1936.

 

Federal New Markets Tax Credit

Federal Agency: U.S. Department of the Treasury

Recipients: Community Development Entities (CDE) that pass through to developers

This credit is targeted at drawing investment to businesses and commercial projects in distressed urban, rural, and suburban communities.  Taxpayers can receive a credit against Federal income taxes by making qualified equity investments in designated Community Development Entities (CDEs).  All qualified investment is used by the CDE to invest in low-income communities.  New Markets Tax Credits are allocated to a CDE, which then acts as a pass through for funds.


Disabled Access Tax Credit

Federal Agency: Internal Revenue Service

Recipients: Small businesses

 

The Internal Revenue Service offers tax credit up to 50 percent on expenses incurred by providing access to persons with disabilities.

 


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