Overview
Section 47 provides the Rehabilitation Tax Credit, commonly known as the Historic Tax Credit (HTC), for qualified rehabilitation of historic buildings. The credit encourages private investment in the rehabilitation and adaptive reuse of historic structures, helping to preserve the nation's architectural heritage while revitalizing communities. The credit applies to certified historic structures and must meet Secretary of Interior standards.
Credit Structure
Historic Building Credit
Credit for certified historic structures listed on the National Register of Historic Places
With Prevailing Wage & Apprenticeship
Credit claimed over 5 years
The 20% credit is claimed ratably over 5 tax years beginning with the year placed in service
Bonus Multipliers
Certified Historic Structure
+RequiredBuilding must be listed on the National Register of Historic Places or located in a registered historic district.
Substantial Rehabilitation
+RequiredRehabilitation expenditures must exceed the greater of $5,000 or the adjusted basis of the building.
Eligibility & Requirements
- 1Building must be a certified historic structure
- 2Rehabilitation must be certified by the National Park Service
- 3Must meet Secretary of the Interior's Standards for Rehabilitation
- 4Building must be placed in service as income-producing property
- 5Minimum rehabilitation expenditure requirements must be met
Direct Pay Election
Historic Tax Credits are not eligible for direct pay but may be syndicated through tax credit equity investments.
Learn More About Direct Pay