Federal Historic Preservation Tax Incentive


A 20% tax credit is available for the rehabilitation of historic, income-producing buildings that are determined by the Secretary of the Interior, through the National Park Service, to be certified historic structures. The tax credit can be used against any federal tax liability, but the ability to use the credit may be affected by other aspects of the Internal Revenue Code. 

The program is administered by the National Park Service and the Internal Revenue Service. Applications are filed with the Connecticut State Historic Preservation Office (SHPO), which conducts a preliminary review. The SHPO submits all applications to the National Park Service, which makes the final determination on certification. 

For information on the economic impact of the Federal Historic Tax Credit during federal fiscal year 2017, read or download the Report on the Economic Impact of the Federal Historic Tax Credit for FY 2021 and the National Park Service's 2022 Annual Report.


  • We strongly recommend prior approval of rehabilitation work.
  • Qualified rehabilitation expenditures must meet the IRS definition of substantial in order to qualify: The qualified rehabilitation expenditures incurred in a two-year measuring period must exceed the adjusted basis of the building. That’s usually the cost of acquisition minus the value of the land plus any improvements minus any prior depreciation.
  • Qualified rehabilitation expenditures are those costs chargeable to a capital account as defined by the Internal Revenue Code. Generally, that includes all costs associated with rehabilitation work to the historic building and some soft costs but excludes costs associated with site improvements.
  • Buildings must be listed on the National Register of Historic Places prior to claiming the tax incentive.
  • The rehabilitation must meet the Secretary of the Interior's Standards for Rehabilitation.
  • Only individuals or business firms that have ownership standing in the property can use the credits.
  • The owner must hold title to the building for five years after completing the rehabilitation.


There is a three-step application process. For application instructions and to download the applications, visit the National Park Service's program page.


Julie Carmelich at (860) 500-2362 or julie.carmelich@ct.gov.