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
Compare the geocoded point for a Chicago address with the boundary used to screen Federal Historic Tax Credit (HTC). A match is a location signal; review the current program source for the boundary's role and remaining criteria.
Published criteria — confirm with Illinois State Historic Preservation Office
- Building must be listed on or contribute to a National Register Historic District
- Income-producing building (commercial, rental residential, industrial)
- Rehabilitation must exceed adjusted basis of the building or $5,000
Federal Historic Tax Credit (HTC) is screened against the National Register Historic District boundary. A geocoded point that intersects that boundary is a location signal, not a determination — review the current program source for the boundary's role and any remaining criteria. A single address can fall inside several overlapping incentive boundaries at once.
Boundaries are precise and change over time, so whether a specific address falls inside a mapped zone always depends on that exact address. The fastest way to check is to run a free snapshot for the parcel you have in mind — mapped coverage is a location signal, not an eligibility determination.
Range on file · 20% federal tax credit (no cap)
Current published terms as of 2026-08-09
- +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 217-782-4836 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
- 217-782-4836
- Web
- Visit site ↗
- Phone
- (202) 513-7270
- Web
- Visit site ↗
Last verified 2026-08-09
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.