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Federal Historic Rehabilitation Tax Credit.

A federal income-tax credit equal to 20 percent of qualified rehabilitation expenditures may support certified rehabilitation of income-producing historic buildings.

Offered byNational Park Serviceverified 2026-07-10

Overview

What it does.

A qualifying Chester commercial, rental, industrial, or mixed-use building may use the credit when the property and rehabilitation satisfy federal requirements. The project must be reviewed through the Illinois State Historic Preservation Office and National Park Service.

Best for: A substantial, standards-compliant rehabilitation of a National Register-listed or contributing income-producing building.

Eligibility

Who and what may qualify.

Eligible applicants

  • Owners or lessees undertaking a certified rehabilitation of an eligible income-producing historic building

Applicants excluded by the source

  • Owner-occupied residential properties
  • Projects that fail the substantial rehabilitation test or preservation standards

Eligible uses

  • Qualified rehabilitation expenditures for certified historic income-producing buildings

Uses excluded by the source

  • Acquisition
  • New additions
  • Landscaping
  • Owner-occupied residential rehabilitation

Application

How to start.

  1. Contact the Illinois State Historic Preservation Office before construction.
  2. Submit the three-part Historic Preservation Certification Application.
  3. Consult qualified tax and preservation professionals before claiming the credit.

Timing: Applications are project-based; review should begin before work starts.

Planning notes

Limits to account for.

  • The building must be income-producing and a certified historic structure.
  • Work must meet the Secretary of the Interior's Standards.
  • This is a tax credit, not an upfront grant.

NPS provides guidance on combining the credit with Low-Income Housing Tax Credits; state historic credits and other financing may also be possible subject to their rules.

Evidence

Official sources.