Last week, TRG attended Advocating Successfully for State Historic Tax Credits, a webinar hosted by the National Trust for Historic Preservation (NTHP) Leadership Forum. Experts from New York, Maine, and Kansas shared how Historic Tax Credit (HTC) programs in their states have saved historic properties, created thousands of jobs, and provided much needed housing, particularly in rural communities.
In recent years, many states have expanded their HTC programs, increasing available tax credits for qualified rehabilitation expenses (QREs), with speakers citing ongoing bipartisan support as evidence that further expansion remains possible. The first state to establish a HTC program was New Mexico in 1984. Today, 38 states offer HTCs, with four states adopting these programs within the last decade. This comes as the result of years of advocacy from preservationists, local businesses, and community organizations, along with the NTHP.
The speakers also touched on the relationship between state and federal HTCs, as some applicants can qualify for both. Many state HTCs are modeled off of the federal HTC, and some state HTCs are tied to an applicant’s eligibility for the federal credit. Presenters noted that state HTC programs have in turn influenced federal HTC policy, as was the case when Congress drafted the Historic Tax Credit Growth and Opportunity Act (2025), now in committee. The bill, if passed, would increase the rehabilitation credit for certain small projects from 20% to 30%, which is more on-par with what has been enacted at the state level.
The panel discussed how tax credit incentives differ between states. While some states cap the number of HTCs that they grant per year, a growing contingent of others do not limit the number of HTC projects they grant. In the examples provided by New York, Maine, and Kansas presenters, the value of the tax credit also depends on the type of project as well as location. For example, Maine’s “Substantial Rehabilitation Tax Credit” allows a property to receive 25% of QRE, should they qualify for the federal credit, plus an additional 10% credit for projects that provide affordable housing and another 10% credit for housing in rural areas, resulting in a potential 45% total tax credit. Additionally, some states are allowing property owners to transfer their tax credit rather than being required to use it in a certain year. This differs from the federal HTCs, which are non-transferable.
For all of the popularity of HTCs, presenters acknowledged that for many applicants, navigating the programs can be tricky. In Kansas, for example, applications for projects over $1 million are being bifurcated between 2 state agencies, creating complications. Specialized expertise can help smooth the application process. For instance, TRG is able to assist with historical research and analysis in support of Part 1 (Evaluation of Significance) of both federal and state historic preservation applications, as well as monitoring clients’ applications and following up with the proper agencies to keep the process from stagnating.
