Federal Historic Tax Credit (HTC)
Properties in National Register Historic Districts qualify for a 20% federal tax credit on certified rehabilitation costs, one of the most valuable credits available for historic building projects.
Check an Address — Free Snapshot
See whether a specific Chicago address sits inside the area that unlocks Federal Historic Tax Credit (HTC), alongside every other incentive that touches that parcel.
Owners of income-producing buildings listed on or contributing to a National Register Historic District. Rehabilitation must follow the Secretary of the Interior's Standards.
Federal Historic Tax Credit (HTC) is tied to the National Register Historic District geography — being inside that boundary is the first eligibility gate. A single address can fall inside several overlapping incentive areas at once.
Boundaries are precise and change over time, so exact eligibility always depends on the specific address. The fastest way to know is to run a free snapshot for the parcel you have in mind.
Typical range · 20% federal tax credit (no cap)
- +20% federal income tax credit on qualified rehabilitation expenditures
- +Can be combined with NMTC, OZ, and state credits
- +No cap on credit amount
- +Credit claimed over 5 years (4% per year)
- 1Confirm your building is listed on or contributes to a National Register district
- 2Submit Part 1 application (historic significance) to NPS via Illinois SHPO
- 3Submit Part 2 application (description of rehabilitation work)
- 4Complete rehabilitation and submit Part 3 (certification of completed work)
Call Illinois SHPO at (217) 785-4512 to confirm historic status
- NPS Historic Preservation Certification Application (Parts 1-3)
- Photographs documenting existing conditions
- Architectural plans for proposed rehabilitation
- Cost documentation for qualified rehabilitation expenditures
This page is a starting point, not eligibility, legal, or tax advice. Verify current requirements, deadlines, and boundaries with the administering agency before applying or spending money — program rules and funding change over time.
- Phone
- (217) 785-4512
- Web
- Visit site ↗
- Phone
- (202) 513-7270
- Web
- Visit site ↗
Last verified 2026-05-21
Created by the 2017 Tax Cuts and Jobs Act and made permanent by the One Big Beautiful Bill Act (OBBBA, Pub. L. 119-21, July 2025) on a 10-year designation cycle. OZ 2.0 governor nominations underway July 2026; new OZ 2.0 map effective 1/1/2027. Existing OZ 1.0 tracts remain valid through 12/31/2028.
WOTC LAPSE NOTICE: The Work Opportunity Tax Credit (WOTC) expired December 31, 2025. As of July 2026 it is in legislative hiatus — no new credits are available for employees starting work on or after January 1, 2026. WOTC has historically been reauthorized retroactively; employers are advised to CONTINUE pre-screening new hires using IRS Form 8850 to preserve potential retroactive eligibility. Credit value: $2,400–$9,600 per qualifying hire.
The New Markets Tax Credit program was made permanent by OBBBA (July 2025) with $5 billion in annual allocation authority — eliminating the prior reauthorization risk. The 39% federal tax credit on qualified equity investments through certified CDEs continues without sunset. CY 2026 application round not yet open as of July 2026. NMTC flows through Community Development Entities (CDEs), not directly to businesses — projects typically $5M+.
HUD-designated Qualified Census Tracts boost Low-Income Housing Tax Credits (LIHTC) by 30%, making affordable housing development more financially viable in these areas.