Historic Tax Credits

Huber Architects has helped numerous clients apply and qualify for historic tax credit programs. Virginia’s Historic Rehabilitation Tax Credit (HRTC) and the Federal Historic Preservation Tax Incentives programs afford qualified projects an excellent funding source for rehabilitating historic structures, yielding as much as 45% of the qualified rehabilitation expenses in the form of Tax Credits.


Why use Historic Tax Credits?

  1. Preservation of historic buildings is critical for protecting our historic and cultural resources.

  2. Incentives for individual developers benefit the public by revitalizing neighborhoods and stimulating local economies.

  3. Historic tax credit incentives can greatly reduce development equity, making them a powerful financing tool.

  4. Reuse of existing buildings is green building. This practice reduces the need for new construction materials and greatly decreases a project’s carbon footprint.


Historic Tax Credit Basics

  • Buildings must be “certified historic structures,” individually nominated to the historic registry or a contributing property to an existing historic district.

  • Work must maintain the character-defining historic features of the building as stipulated by the National Park Service (NPS) Secretary of the Interior’s Standards for Rehabilitation.

  • In Virginia, rehabilitation efforts are governed by the Department of Historic Resources for both federal and state programs. There is a three-part application process that we can help you navigate.

  • Tax credits are available for Qualified Rehabilitation Expenses (QRE’s) as follows:

    • Virginia state credit up to 25% of QRE’s

    • Federal credit up to 20% of QRE’s (maximum distribution rate is 4% per year over a 5-year period; property must be income-producing to qualify)

    • Total = 45% of QRE’s


Qualified Rehabilitation Expenses (QRE’s) include:

  • Soft costs such as architectural and engineering fees, construction period interest and taxes, construction management costs, and reasonable developer fees

  • All structural and material components and any work associated with the rehabilitation

  • Expenses related to new HVAC, plumbing & electrical systems

  • Compliance with ADA and fire suppression systems

Ineligible expenses include:

  • Acquisition costs

  • Additions or enlargements of the building

  • Personal property (such as appliances or furniture)

  • Most site work