Federal, state, and local tax incentives exist for owners of historic properties. The Federal Historic Preservation Tax Incentives Program includes a 20 percent income tax credit for the rehabilitation of historic, income-producing buildings. The new Texas Historic Preservation Tax Credit Program offers a 25 percent tax credit for the rehabilitation of historic buildings.
Additionally, a state sales tax exemption on labor is available for work to buildings listed in the National Register of Historic Places. County and local taxing authorities may grant property tax exemptions for buildings with state or local historical designations.
Average amount spent on each certified federal rehabilitation tax credit project in Texas since 2000
Important Notice: Transition to Electronic Submissions
As of August 15, 2023, all applications for the state and federal tax credit programs will now be submitted electronically.
This is a major and exciting change after 40 years of accepting solely hard-copy submissions.
For more information about electronic submissions for the federal tax credit program, please see the National Park Service's website.
In the coming weeks, Texas's digital submissions website will be taking shape as well. Please check back for regular updates during this transition period!