Federal Historic Tax Credit

20% credit for certified historic structures used for income-producing purposes

Federal Tax Credit

3. Federal Historic Tax Credit

Amount: 20% of qualified rehabilitation expenditures for certified historic structures.

Use restriction: Available only for business or income-producing properties (commercial, industrial, agricultural, rental residential). Not available for a property used exclusively as the owner’s private residence.

Administered by: National Park Service (NPS) and IRS, in partnership with the State Historic Preservation Office (SHPO).

Official IRS page: irs.gov/rehabilitation-credit
Official NPS overview: nps.gov/tax-credit-basics

Key Requirements

Building must be a certified historic structure (listed in the National Register or located in a registered historic district).
Rehabilitation must be “substantial” and meet the Secretary of the Interior’s Standards for Rehabilitation.
Claimed on IRS Form 3468 and reported on Form 3800 (General Business Credit).

Credit Timing

The 20% credit is determined in the year the building is placed in service and is claimed ratably over 5 years (4% per year) under current law. The credit is non-refundable but can be carried forward.

Stacking with State Credits

When combined with the Iowa Historic Preservation Tax Credit, the total can reach 45% of qualifying rehabilitation costs (20% federal + 25% state).

                        Important note: The pre-2018 10% credit for pre-1936 non-historic buildings was repealed by the Tax Cuts and Jobs Act for expenditures paid or incurred after December 31, 2017.
                    

                    Disclaimer: Tax codes, grant guidelines, and deadlines change frequently. Before making financial or project decisions, confirm current rules, application windows, and eligibility directly with IEDA, the State Historical Society of Iowa / SHPO, the IRS, and your local city or county economic development office.
                