Historic Tax Credit Calculator

This calculator estimates the combined federal and state tax credits available for rehabilitating a historic, income-producing building. The federal Historic Tax Credit is calculated at a flat 20% of Qualified Rehabilitation Expenditures (QRE), the rate set by 26 U.S.C. § 47 and jointly administered by the IRS and the National Park Service's Technical Preservation Services — but only if the property is listed on the National Register of Historic Places (or is a certified historic structure) — toggle that input off and the calculator correctly zeroes out the federal credit entirely, since the 20% rate isn't available otherwise. The state credit is calculated the same way — a percentage of QRE you supply — because state historic tax credit rates vary widely (commonly 10-25%, though some states go higher or lower), so check with your State Historic Preservation Office for the actual current rate rather than assuming the calculator's default.

The calculator also checks the "substantial rehabilitation" test both federal and most state programs require: under 26 U.S.C. § 47(c)(1)(B)(i), your qualified expenditures must exceed the greater of the building's adjusted basis or $5,000 during a 24-month measurement period (60 months for phased projects), and projects that don't clear this bar don't qualify for the credit no matter how much work is planned, which is why this flag is worth checking before you get attached to a projected credit number. Adding the federal and state credits together gives a total credit amount, which the calculator subtracts from the qualified expenses to show the net effective cost after credits, along with that total expressed as a percentage discount off the project's rehab costs. Keep in mind this is a planning estimate, not a filed calculation — actual credit amounts depend on IRS certification of the rehabilitation work by the National Park Service, and QRE itself excludes certain costs like acquisition price, new additions beyond specific thresholds, and site work, so a tax professional should verify your real QRE figure before you rely on this for financing decisions.