Historic buildings are tangible links to the past. They help give a community a sense of identity, stability, and orientation. The Federal Government encourages the preservation of historic buildings through various means. One of these is the program of Federal tax incentives to support the rehabilitation of historic and older buildings. The Federal Historic Preservation Tax Incentives Program is one of the Federal government’s most successful and cost-effective community revitalization programs. The Preservation Tax Incentives reward private investment in rehabilitating historic properties such as offices, rental housing, and retail stores.

Since 1976, the National Park Service has administered the program in partnership with the Internal Revenue Service and with State Historic Preservation Offices. Current tax incentives for preservation, established by the Tax Reform Act of 1986 (PL 99-514:Internal Revenue Code Section 47) include:

* A 20% tax credit for certified rehabilitation of certified historic structures
* A 10% tax credit for the rehabilitation of non-historic, non residential building built before 1936

*For both of these credits, the rehabilitation must be a substantial one and must involve a depreciable building.

Memphis Heritage is often asked to assist owners and prospective owners of historic properties in seeking Tax incentives for their rehabilitation projects. Consultation and assistance by our staff is available on an individual basis. Consulting rates vary depending on the complexity of the project.