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Federal Tax Credits

The 20% federal rehabilitation tax credit program began in 1976.  The program rewards private investment in the rehabilitation of historic properties.  To qualify for the 20% tax credit the following must be true of the project:

  • The historic building must be listed on the National Register of Historic Places or be certified as contributing to the significance of a “registered historic district.” 

  • Once rehabilitated, the building must be used for an income-producing purpose for at least five years.

  • The project must meet the “substantial rehabilitation test”, meaning that the cost of the rehabilitation must exceed the pre-rehabilitation cost of the building. 

  • The rehabilitation work must be completed according to the Secretary of the Interior’s Standards for Rehabilitation (See SDF Questions and/or Fund VII Questions for a complete listing of the standards).

 

TCC works with developers of historic rehabilitation projects that desire to utilize the 20% federal rehabilitation tax credit.  For smaller projects, meaning projects generating less than $3 million in federal tax credits, TCC established the Small Deal Fund and TCC Historic Tax Credit Fund VII.  John Bowman, Jr. serves as president of each of these funds and detailed information on each fund is provided on this website. 

Additionally, TCC provides a full range of services for developers of larger projects that generate federal historic tax credits.  It has relationships with a number of institutional investors that have a need for the federal tax credits to offset their corporate tax liability.  The company also works with developers to:

  • determine which rehabilitation expenditures qualify for historic tax credits;

  • develop financing options; and

  • prepare financial projections for the developer that reflect agreed upon deal terms.   

 

If you are a developer with a deal generating between $200,000 and $3,000,000 in federal tax credits contact John Bowman, Jr. and also review the portions of this website dedicated to the Small Deal Fund and Fund VII.  If you are a developer with a transaction generating federal historic tax credits in excess of $3,000,000 contact George Brower. 

 
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