Explore RockvilleHow Do I?
Click to Home
Go To Search
Rockville Connect
Federal Historic Tax Credit Program
The federal program applies only to income-producing properties, but is a substantial benefit as it is a credit toward federal income taxes owed. It requires certification through the Maryland Historical Trust (MHT) that alterations and improvements meet the Secretary of the Interior’s Standards for Rehabilitation. Persons wishing to utilize this should consult their CPA and MHT for the best tax strategy before proceeding.

Benefit: 20% of eligible expenditures are refunded from Federal income taxes owed.

Owners of income-producing properties listed on the National Register or located in a National Register District may be eligible for a 20% federal tax credit for certified rehabilitation of income-producing historic structures such as commercial, industrial, or rental residential buildings. This credit can be combined with a straight-line depreciation period of 27.5 years for residential property and 31.5 years for non-residential property for the depreciable basis of the rehabilitated building, reduced by the amount of the tax credit claimed.

The building rehabilitation must be in conformance with the Secretary of the Interior’s Standards for Rehabilitation and be certified by the Maryland Historical Trust. The forms are similar to those for the Maryland tax credit and should begin with project planning and consultation with a tax professional. This program is administered by the National Park Service. More information on Federal historic preservation tax incentives is available on the National Park Service Web site.