A 20% Federal income tax credit on the qualified amount of private investment spent on certified rehabilitation of a National Register listed historic building.
Nationwide, the Federal Historic Tax Credit Program has garnered $78 billion (not adjusted for inflation) in total qualified rehabilitation expenditures for a cumulative economic impact of nearly $250 billion since the program's inception in 1976. Over 41,250 buildings have been rehabilitation through tax credits, creating more than 2.4 million jobs. In 2015 alone, 85,000 jobs were created as a result of ITC projects. The cost of the program in actual tax credits awarded ($20.5 billion) is far outweighed by the net gain in Federal tax receipts ($25.9 billion) as a result of rehabilitation activities, which leverages private investment for economic growth.
There are four threshold requirements for a project to become certified:
Technical assistance and application information are available from the state Department of Archaeology and Historic Preservation. The office reviews all applications and makes comments and recommendations. Final review and approval is made by the National Park Service in its Washington, D.C. office.
The application is broken into three parts: (link to PDF forms)
Part 1 (Evaluation of Significance)
Part 2 (Description of Rehabilitation) | Amendment Form
Part 3 (Request for Certification of Completed Work)
Instructions for completing Historic Preservation Certification Application and see below "Planning Successful Tax Credit Rehabilitations"
Note for Mac users: You must right click (or double click, or hold Control and click, depending on your mouse/trackpad settings) and "Save As" or "Download As" on the link below rather than clicking on the link. Clicking on the link will tell you that you must update your Adobe Acrobat Reader.
Note for PC users: The application forms are fillable PDFs. Download and “Save As” under a new file name before filling out the form.
For more information about how the Federal Historic Tax Credit Program is administered in Washington State contact:
Department of Archaeology & Historic Preservation
Nicholas Vann, AIA / State Historical Architect
p: (360) 586-3079
The New Markets Tax Credit (NMTC) Program permits taxpayers to receive a credit against Federal income taxes for making qualified equity investments in designated Community Development Entities (CDEs). Substantially all of the qualified equity investment must in turn be used by the CDE to provide investments in low-income communities. The credit provided to the investor totals 39% of the cost of the investment and is claimed over a seven-year credit allowance period. In each of the first three years, the investor receives a credit equal to five percent of the total amount paid for the stock or capital interest at the time of purchase. For the final four years, the value of the credit is six percent annually. Investors may not redeem their investments in CDEs prior to the conclusion of the seven-year period.
The National Trust Small Deal Fund is a partnership between Tax Credit Capital and a subsidiary of National Trust for Historic Preservation designed to help developers of historic properties that generate an equity investment of less than $650,000 (total project costs of approximately $4 million or less). Although the tax credit program has been around for 25 years, and an active and efficient market has evolved for larger deals, there is still a void in the market for smaller projects. The Fund was created in 2002 to fill this void.
In August 2000, the National Trust for Historic Preservation and the Bank of America entered into a partnership to create an equity fund dedicated solely to investing in historic tax credit projects, known as the Bank of America Historic Tax Credit Fund, LP. Since its inception, the Fund has closed on twelve investments totaling $21.4 million in net historic tax credit equity. Projects in which the Fund invested ranged in both geography and size but reflect a consistent theme: each one rehabilitates a National Register-eligible structure that significantly contributes to the economic vitality and character of the surrounding community.Managed by The National Trust Community Investment Corp. (NTCIC), a for-profit subsidiary of the National Trust, the Fund's unique investment strategy targets projects with development costs in the range of $4 million to $30 million, eligible for a minimum of $750,000 in tax credits. Types of projects eligible for a Fund equity investment include apartment lofts, office and retail use, mixed-use development and governmental and nonprofit facilities. Thanks to NTCIC's $127 million new markets tax credit allocation, the Fund is also able to offer new markets tax credit equity to qualifying historic tax credit projects in low-income communities.
Bank of America Historic Tax Credit Fund