Tap to get financing
Commercial Real Estate Loans
Loan Options
Permanent FinancingBridge LoansConstruction LoansLife Company LoansSBA 7(a) LoansSBA 504 Loan ProgramFannie Mae LoansFreddie Mac LoansHUD Multifamily LoansCMBS LoansFix and Flip LoansFind a Lender Yourself
Property Types
All Property TypesRetailOfficeIndustrialApartmentsSelf StorageHotelLandChurchSchoolAuto DealershipAuto Repair ShopCar WashGas StationHealthcareMedical OfficeDental OfficeVeterinaryFitness CenterBowling AlleyConvenience StoreDay Care CenterGolf CourseAnchored Strip CenterRestaurantMarinaWarehouseFuneral Home
Resources
BlogCurrent Mortgage RatesForms and TemplatesGlossaryCRE Insurance by StateVideo LibraryHow to Get a CRE LoanFrequently Asked Questions
Calculators
Commercial Mortgage CalculatorCap Rate CalculatorNOI CalculatorDSCR CalculatorLTV CalculatorLTC CalculatorDebt Yield CalculatorYield Maintenance CalculatorInternal Rate of Return Calculator
For Brokers
About Us
About UsLeadershipTeamContactWe're Hiring
(561) 556-7778
Get financing →
Interest Rates

Today’s rates for a wide range of commercial property and loan types.
Check Today's Rates →

Newly Published
Apr 16 at Commercial Real Estate Loans
The Commercial Mortgage Broker's Guide to LinkedIn
Apr 15 at Commercial Real Estate Loans
Becoming the Go-To Financing Expert in Your CRE Niche
Apr 14 at Commercial Real Estate Loans
Deal Sourcing: Balancing Inbound and Outbound Strategies
Explore the Janover Network
May 8 at HUD Loans
The 2025 Developer's Guide to HUD Lender Matching
Apr 22 at Janover Inc. Investor Relations
Janover Inc. Announces Corporate Name Change to DeFi Development Corporation
Apr 16 at Janover Inc. Investor Relations
Janover Inc. to Host X Spaces Conversation on NAV Premiums
Was This Article Helpful?
CRE Insights Blog
4 min read

The Historic Tax Credit Explained

Learn about the benefits and eligibility requirements of the Historic Tax Credit program.

In this article:
  1. What Is the Historic Tax Credit?
  2. How the Historic Tax Credit Program Works
  3. Which Buildings Qualify?
  4. Rehabilitation Rules for the HTC Program
  5. Investing in Opportunity Zones with HTC
  6. Combining HTC With Low-Income Housing Tax Credits (LIHTCs)
  7. Related Questions
  8. Get Financing
Start Your Application and Unlock the Power of Choice Experience expert guidance, competitive options, and unparalleled industry expertise.
Click Here to Get Quotes →
$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!

What Is the Historic Tax Credit?

Investors who are rehabilitating or repurposing historic buildings may qualify for the Historic Tax Credit, or HTC. The HTC is a federal tax credit program which provides investors with a 20% credit against the costs of rehabilitating eligible historic structures. The program — in operation now for the last 40 years — has been responsible for the restoration of numerous historic properties, and has served as a catalyst for over $140 billion of private investment dollars being funneled into historic rehabilitation projects. The Historic Tax Credit Program is often confused with State Historic Tax Credits which are offered by 35 states and can be used against an investor’s state income tax liability.

How the Historic Tax Credit Program Works

Through the program, investors in qualified historic buildings are granted a 20% tax credit against rehabilitation expenses, though not all expenses qualify under the program guidelines. In fact, only designated qualified rehabilitation expenses (QREs) actually count. QREs generally include costs associated with all of the operational and maintenance components of a building, such as

  • Floors, walls, partitions, and ceilings

  • Doors, windows, stairs, and chimneys

  • Tiles, paneling, or other permanent coverings

  • Lighting fixtures, electrical wiring, and plumbing components

  • Elevators, escalators, fire escapes, sprinkler systems

  • In contrast, some common expenses do not qualify for the credit. These ineligible expenses include:

  • Cabinets, appliances, furniture, and tacked carpeting

  • New decks, porches, fencing, and landscaping

  • Planters, parking lots, signage, and sidewalks

  • Financing fees, feasibility studies, leasing costs

  • Structural demolition costs

  • It should be noted that some development and financing-related fees still qualify — interest and financing on construction loans, for example — along with construction management, engineering, and developer fees that may also qualify for the tax credit.

    Which Buildings Qualify?

    Property eligibility for the historic tax credit program includes:

    • Buildings listed in the National Register of Historic Places as certified historic buildings

    • Buildings situated in a registered historic district and certified by the National Park Service as historically significant

    • Rehabilitation Rules for the HTC Program

      Developers attempting to apply for historic tax credits must bear in mind that in order to be approved, their project plan must be consistent with the Secretary of the Interior's Standards for Rehabilitation. The purpose behind the standards for rehabilitation is to ensure that a developer makes as few changes as possible to the building — an effort to retain the key historical and architectural elements of the property — essentially ensuring the majority of the work done is restorative in nature.

      Properties eligible for the HTC program are typically multifamily apartment buildings, office buildings, warehouses, and industrial buildings, though a wide variety of other structures are also potentially eligible. A crucial factor, however, is that properties should have a good chance of generating income and creating jobs in the surrounding community in order to qualify — non-commercial properties such as bridges, monuments, and railroad cars do not qualify for the credit.

      Investing in Opportunity Zones with HTC

      The Opportunity Zones program, which was created as part of the Tax Cuts and Jobs Act of 2017, is one of the most popular federal tax incentive programs available for commercial real estate. The program has designated 8,700 Qualified Opportunity Zones across the country — these zones being representative of low-income areas nominated by state or territorial governors and approved by the U.S. Treasury. By investing in real estate located in Opportunity Zones utilizing Opportunity Funds (specialized investment vehicles which must keep at least 90% of their assets invested in Opportunity Zones), investors can defer their capital gains taxes for a set period of time.

      In regards to the historic tax credit program, many opportunity zones also overlap significant historical areas — meaning there is great potential to combine these two tax incentive programs to maximize investment yields. In cities like New Orleans, for example, registered historic districts overlap Opportunity Zones in multiple areas, making the area a prime target for HTC/Opportunity Fund redevelopment.

      Combining HTC With Low-Income Housing Tax Credits (LIHTCs)

      In addition to combining benefits from Opportunity Fund investments with Historic Tax Credits, investors may also combine Historic Tax Credits with Low-Income Housing Tax Credits (LIHTCs) if the historic property serves a multifamily purpose. While the benefits of combining these incentives are quite impressive, in order to qualify, investors must be willing to make either a portion or all of the building’s units affordable.

      Related Questions

      What is the Historic Tax Credit?

      The Historic Tax Credit, or HTC, is a 20% federal tax credit designed to encourage investors to fund the substantial rehabilitation of historic structures. Since 1976, Historic Tax Credits have been responsible for creating $144.6 billion in private investment while preserving more than 43,000 historic structures across the country. With the credit, an investor can take 20% of the project’s qualified costs as a deduction from their federal income taxes.

      The Historic Tax Credit (HTC) program is a federal tax credit program which provides a 20% credit against the cost of rehabilitating eligible historic structures. Over the last 40 years, the program has been responsible for the restoration of numerous historic landmarks, and has lead to more than $140 billion of private investment dollars being funneled into historic rehabilitation projects.

      How does the Historic Tax Credit work?

      The Historic Tax Credit Program works by granting investors in qualified historic buildings a 20% tax credit against rehabilitation expenses. Only designated qualified rehabilitation expenses (QREs) count, such as floors, walls, partitions, and ceilings; doors, windows, stairs, and chimneys; tiles, paneling, or other permanent coverings; lighting fixtures, electrical wiring, and plumbing components; and elevators, escalators, fire escapes, and sprinkler systems. Common expenses that do not qualify for the credit include cabinets, appliances, furniture, and tacked carpeting; new decks, porches, fencing, and landscaping; planters, parking lots, signage, and sidewalks; financing fees, feasibility studies, leasing costs; and structural demolition costs.

      Property eligibility for the historic tax credit program includes buildings listed in the National Register of Historic Places as certified historic buildings and buildings situated in a registered historic district and certified by the National Park Service as historically significant.

      What are the benefits of the Historic Tax Credit?

      The Historic Tax Credit (HTC) is a 20% federal tax credit designed to encourage investors to fund the substantial rehabilitation of historic structures. Through the program, investors in qualified historic buildings are granted a 20% tax credit against rehabilitation expenses, though not all expenses qualify under the program guidelines. Qualified rehabilitation expenses (QREs) generally include costs associated with all of the operational and maintenance components of a building, such as floors, walls, partitions, and ceilings; doors, windows, stairs, and chimneys; tiles, paneling, or other permanent coverings; lighting fixtures, electrical wiring, and plumbing components; elevators, escalators, fire escapes, and sprinkler systems. Additionally, some development and financing-related fees still qualify — interest and financing on construction loans, for example — along with construction management, engineering, and developer fees that may also qualify for the tax credit.

      What types of projects qualify for the Historic Tax Credit?

      The Historic Tax Credit (HTC) program is available for development projects attempting to apply for historic tax credits. Eligible properties are generally multifamily apartment buildings, office buildings, warehouses, and industrial buildings, though a wide variety of structures are potentially eligible. Non-commercial properties like bridges, monuments, and railroad cars do not qualify.

      In order to qualify, properties should have a good chance of generating income and creating jobs in the surrounding community. Through the program, investors in qualified historic buildings are granted a 20% tax credit against rehabilitation expenses, though not all expenses qualify under the program guidelines. Qualified rehabilitation expenses (QREs) generally include costs associated with all of the operational and maintenance components of a building, such as floors, walls, partitions, and ceilings; doors, windows, stairs, and chimneys; tiles, paneling, or other permanent coverings; lighting fixtures, electrical wiring, and plumbing components; and elevators, escalators, fire escapes, and sprinkler systems.

      In contrast, some common expenses do not qualify for the credit. These ineligible expenses include cabinets, appliances, furniture, and tacked carpeting; new decks, porches, fencing, and landscaping; planters, parking lots, signage, and sidewalks; financing fees, feasibility studies, leasing costs; and structural demolition costs. It should be noted that some development and financing-related fees still qualify — interest and financing on construction loans, for example — along with construction management, engineering, and developer fees that may also qualify for the tax credit.

      For more information, please refer to the Secretary of the Interior's Standards for Rehabilitation.

      How can I apply for the Historic Tax Credit?

      In order to apply for the Historic Tax Credit, you must first ensure that your development project meets the Secretary of the Interior's Standards for Rehabilitation. Additionally, the property must be a multifamily apartment building, office building, warehouse, or industrial building that has a good chance of generating income and creating jobs in the surrounding community.

      Once you have determined that your project meets the eligibility requirements, you can apply for the Historic Tax Credit by submitting an application to the National Park Service. The application process includes submitting a completed application form, a narrative description of the project, and supporting documentation.

      In this article:
      1. What Is the Historic Tax Credit?
      2. How the Historic Tax Credit Program Works
      3. Which Buildings Qualify?
      4. Rehabilitation Rules for the HTC Program
      5. Investing in Opportunity Zones with HTC
      6. Combining HTC With Low-Income Housing Tax Credits (LIHTCs)
      7. Related Questions
      8. Get Financing

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →

Janover: Your Partner in Growth

At Janover, we offer a wide range of services tailored to your unique needs. From commercial property loans and LP management to business loans and services for lenders, we're here to help you succeed.

Learn more about Janover →
Commercial Property Loans

Get the best CRE financing on the market.

Explore Financing Options →
LP Management

Syndicate deals on autopilot with Janover Connect.

Discover LP Management →
Business Loans

Match with the right kind of loan, in record time.

Find Business Loans →
For Lenders

Supercharge your loan pipeline. Unlock more deals.

Boost Your Loan Pipeline →
Commercial Real Estate Loans

Commercial Real Estate Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Commercial Real Estate Loans, SBA7a Loans, HUD Loans, Janover Insurance, Janover Pro, Janover Connect, and Janover Engage.

Janover Tech Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487
(561) 556-7778 
hello@commercialrealestate.loans

Commercial Real Estate Loans

Eligible Property Types
Mortgage Rates
Commercial Loan Calculator
Glossary
CRE Loan Guides per State
For Commercial Mortgage Brokers

Site Information

Privacy Policy
Terms of Use


For Commercial Mortgage Brokers

This website is owned by a company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

This website utilizes artificial intelligence technologies to auto-generate responses, which have limitations in accuracy and appropriateness. Users should not rely upon AI-generated content for definitive advice and instead should confirm facts or consult professionals regarding any personal, legal, financial or other matters. The website owner is not responsible for damages allegedly arising from use of this website's AI.

Copyright © 2025 Janover Tech Inc. All rights reserved.

+

Fill out the form below and get the pricing and terms banks can't compete with.