Illinois Historic Preservation Tax Credit.

Overview

What it does.

The active statewide credit can apply to a qualifying Chester building and is capped at $3 million per project. The project must complete the federal historic-rehabilitation certification process and compete in one of the state's two annual allocation rounds; the next round has not opened yet.

Best for: A substantial income-producing rehabilitation of a certified historic Chester building.

Eligibility

Who and what may qualify.

Eligible applicants

• Owners of certified historic structures undertaking certified rehabilitations and completing the required federal historic tax-credit review

Eligible uses

• Qualified rehabilitation expenditures for an approved certified historic rehabilitation

Uses excluded by the source

• Acquisition cost, site work, furnishings, and other costs excluded from qualified rehabilitation expenditures

Application

How to start.

1. Contact IL SHPO before starting demolition or construction.
2. Establish historic status and prepare the federal Part 1 and Part 2 materials.
3. Follow the current round schedule for the mandatory S-1 workshop and the short S-2 and S-3 submission windows.

Timing: For 2026 Round 2, NPS Part 2 approval and participation in the S-1 workshop are required by August 19. Part S-2 accepts submissions only from 10:00 a.m. to 5:00 p.m. on August 26. Eligible S-2 applicants must submit Part S-3 by 5:00 p.m. on September 9, the final application deadline.

Planning notes

Limits to account for.

• Do not begin work that could jeopardize historic certification before review.
• A National Register listing alone does not guarantee project or credit approval.

May be paired with the federal historic credit when all program and financing rules are satisfied.

Evidence

Official sources.

• Illinois Historic Preservation Tax Credit ProgramIllinois State Historic Preservation Office · accessed 2026-07-10