When businesses are considering expansion or relocation venues, some of their considerations may include properties that have historical significance to the area or neighborhood and are listed on the National Register of Historic Places. This may provide an opportunity to restore an historical property and garner certain tax advantages or income to offset rehabilitation costs along the way. 

As developers, owners, and managers require innovative financing solutions to fill gaps in project funding, state and federal tax credits, together with depreciation and other available grants, can offset as much as 45 percent of a construction project's budget, and they can make or break the feasibility of resurrecting a building that has significant community value. 

The historic rehabilitation tax credit program is one of the nation's most successful and cost-effective community revitalization programs to date, as tax credits encourage private-sector rehabilitation of historic buildings. But the benefits of these tax credits go beyond urban renewal. They can help fund a project that might not otherwise get off the ground, and they can create new construction jobs for the community (which builds further good will in the process). In addition, being designated as an historic place may increase surrounding property values, enhancing the economic viability of an entire neighborhood. In addition to historic rehabilitation tax credits, there are other tax credits worth mentioning that - depending upon the specific construction needs of the site - may be applicable. These tax credits may be used together for the same project. Brownfields tax credits (for remediating contamination) and renewable energy tax credits (for investing in or producing renewable energy) are two tax credits, in particular, that may provide an added benefit, depending upon whether the site also requires the cleanup of contamination, or whether renewable sources of energy - including solar, biomass, and wind - will be used to power the building.

Both the federal and most state governments recognize that encouraging the rehabilitation of historical properties is beneficial to our communities. Through tax incentives such as the historic rehabilitation tax credit, they offer a solution that manages some of the inherent challenges in preserving an historical building, and potentially provide added financial incentives as well. The value of such credits goes far beyond monetary figures.