Historic Preservation/Tax Credits

North Carolina Historic Preservation State & Federal Tax Credits

North Carolina preservation state tax credits, effective January 1, 1998, have made rehabilitations of historic buildings in North Carolina more attractive than ever before. The law provides a 20% state tax credit and a 20% federal investment tax credit for rehabilitations of income-producing historic properties. Only certified historic structures will qualify for the credits. A “certified historic structure” is defined as a building that is listed in the National Register of Historic Places, either individually or as a contributing building in a National Register historic district. In effect, the combined federal-state credits reduce the cost of a certified rehabilitation of an income-producing historic structure by 40%. Downtown Sanford is fortunate to have three districts located within or near its boundaries – the Downtown Sanford Historic District, the Rosemount-McIver District, and the Hawkins Avenue District. If you own property in one of these districts you may be eligible for the credit; please click on this link for a Map of the National Register Districts.

Some other key points and cautionary reminders about the credits:

  • The new credits will apply only to qualified expenditures made on or after January 1, 1998.
  • The federal tax credit for income-producing buildings provides for “preliminary certification” that enables an owner to take the credit for a qualifying rehabilitation even before the structure is actually listed in the National Register of Historic Places.
  • The rehabilitation of the historic structure must be substantial. For income-producing properties, the rehabilitation expense must exceed the greater of the “adjusted basis” of the building or $5,000 within a 24 month period or a 60 month period for phased projects.
  • All rehabilitation work must meet the Secretary of the Interior’s Standards for Rehabilitation. Applications for income-producing structures are subject to a joint review by the N.C. State Historic Preservation Office and the National Park Service, with final authority resting with the National Park Service.
  • The credits cannot be claimed against the cost of acquisition, new additions, site work, or personal property. Only costs incurred in work upon or within a historic structure will qualify. Interior work such as HVAC work and kitchen and bathroom remodelings will qualify if the work meets “The Secretary of the Interior’s Standards for Rehabilitation.”
  • Property owners of income-producing properties are strongly advised to consult with the State Historic Preservation Office before beginning a rehabilitation to resolve potential design and rehabilitation problems that could result in denial of the credits.

Learn more about the state and federal historic tax credit program.

Downtown Sanford offers free Wi-Fi via Open Broadband.

Meet our sponsors.

© 2023 Downtown Sanford. All Rights Reserved.

FB Instagram Twitter

As a Main Street America Accredited program, Downtown Sanford, Inc. is a recognized leading program among the national network of more than 1,200 neighborhoods and communities who share both a commitment to creating high-quality places and to building stronger communities through preservation-based economic development.  All Main Street America Accredited programs meet a set of National Accreditation Standards of Performance as outlined by the National Main Street Center.