Historic Preservation Financial Incentives

Property Tax Assessment Freeze for Historic Residences

The Property Tax Assessment Freeze for Historic Residences freezes property taxes over a 12-year period after rehabilitation of the property. There is a minimum investment of 25% the property’s market value, as determined by the County Assessor. The building must be owner-occupied (single family home, condominium, cooperative unit, or multi-family building up to 6 units) and a certified historic structure. More information is available here. 

25% State Historic Tax Credit (Income-producing)

A 25% State Historic Tax Credit is available for rehabilitating a historic building to an income-producing use. This competitive, dollar-for-dollar state income tax credit, equal to 25% of the qualified construction costs and expenses, must be coupled with the 20% Federal Historic Tax Credit. Each project that qualifies can apply for 25% of its qualifying rehabilitation expenditures (QREs) up to a total of $3 million in state income tax credits. No project can receive more than $3 million in Illinois Historic Preservation Tax Credits. To qualify for the credit, rehabilitation costs must exceed the building’s “adjusted basis” – that is, the purchase price minus the land cost and depreciation. The building must be a certified historic structure listed on the National Register of Historic Places before the project is completed. In addition, applications that meet one of the following criteria will be prioritized: 1). the qualified historic structure is located in a county that borders a state with a historic property rehabilitation credit; 2). the qualified historic structure was previously owned by a federal, state or local governmental entity; 3). the qualified historic structure is located in a census tract that has a median family income at or below the state median family income; 4). the qualified rehabilitation plan includes in the development partnership a Community Development Entity or a low-profit (B Corporation) or not-for-profit organization; 5). the qualified historic structure is located in an area declared under an Emergency Declaration of Major Disaster Declaration under the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act. The program is administered by the Illinois State Historic Preservation Office. More information is available here. 

20% Federal Historic Tax Credit (Income-producing)

A 20% Federal Historic Tax Credit is available for rehabilitating a historic building to an income-producing use. This dollar-for-dollar federal income tax credit, equal to 20% of the qualified construction costs and expenses, may be used by the building owner or syndicated to a tax-credit investor. To qualify for the credit, rehabilitation costs must exceed the building’s “adjusted basis” – that is, the purchase price minus the land cost and depreciation. The building must be listed on the National Register of Historic Places before the project is completed. The program is administered by the Illinois State Historic Preservation Office and National Park Service. More information is available here. 

Cook County Class-L Property Tax Incentive

The Cook County Class-L Property Tax Incentive is a 10-year property tax reduction for rehabilitating a commercial or industrial landmark building. The minimum investment is 50% of the building’s assessed value (the total assessed value minus the land value) as determined by the County Assessor. More information is available here. 

25% State Historic Tax Credit

A 25% State Historic Tax Credit is available for rehabilitating a historic building to an income-producing use. This competitive, dollar-for-dollar state income tax credit, equal to 25% of the qualified construction costs and expenses, must be coupled with the 20% Federal Historic Tax Credit. Each project that qualifies can apply for 25% of its qualifying rehabilitation expenditures (QREs) up to a total of $3 million in state income tax credits. No project can receive more than $3 million in Illinois Historic Preservation Tax Credits. To qualify for the credit, rehabilitation costs must exceed the building’s “adjusted basis” – that is, the purchase price minus the land cost and depreciation. The building must be a certified historic structure listed on the National Register of Historic Places before the project is completed. In addition, applications that meet one of the following criteria will be prioritized: 1). the qualified historic structure is located in a county that borders a state with a historic property rehabilitation credit; 2). the qualified historic structure was previously owned by a federal, state or local governmental entity; 3). the qualified historic structure is located in a census tract that has a median family income at or below the state median family income; 4). the qualified rehabilitation plan includes in the development partnership a Community Development Entity or a low-profit (B Corporation) or not-for-profit organization; 5). the qualified historic structure is located in an area declared under an Emergency Declaration of Major Disaster Declaration under the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act. The program is administered by the Illinois State Historic Preservation Office. More information is available here. 

Preservation Easement Donation

A preservation easement donation is a one-time charitable federal income tax deduction equal to the appraised value of the preservation easement. A preservation easement is a legal agreement that assigns a qualified non-profit organization the right to review and approve alterations to a property for the purpose of preserving it in perpetuity. Property must be a certified historic structure on the National Register of Historic Places, individually listed, contributing to a district, or contributing to a local landmark district. To learn more, please contact Landmarks Illinois directly at 312-922-1742 or visit their page: Preservation Easements webpage.

20% Federal Historic Tax Credit

A 20% Federal Historic Tax Credit is available for rehabilitating a historic building to an income-producing use. This dollar-for-dollar federal income tax credit, equal to 20% of the qualified construction costs and expenses, may be used by the building owner or syndicated to a tax-credit investor. To qualify for the credit, rehabilitation costs must exceed the building’s “adjusted basis” – that is, the purchase price minus the land cost and depreciation. The building must be listed on the National Register of Historic Places before the project is completed. The program is administered by the Illinois State Historic Preservation Office and National Park Service. More information is available here. 

Save America’s Treasures Grants

The Federal Save America’s Treasures grants program began in 1999 and helps preserve nationally significant historic properties and collections that convey our nation’s rich heritage to future generations of Americans. The National Park Service (NPS) announces availability of $13 million in Historic Preservation Fund grants for the Save America’s Treasures (SAT) program. SAT grants provide preservation and/or conservation assistance to nationally significant historic properties and collections. Grants will be awarded through a competitive process and require a dollar-for-dollar, non-Federal match, which can be cash or documented in-kind. Grants will be administered by the National Park Service in partnership with the Institute of Museum and Library Services (IMLS), the National Endowment for the Arts (NEA), and National Endowment for the Humanities (NEH). 

National Fund For Sacred Places

The National Fund for Sacred Places is a program of Partners for Sacred Places in collaboration with the National Trust for Historic Preservation. The National Fund is guided by an Advisory Committee, bringing together faith leaders, architects and philanthropists from across the country to inform the grant-making process. The Fund provides 1) grants for the planning and execution of urgent capital projects at historic sacred places that are valued for their cultural importance as well as their role in providing human services, strengthening communities, and revitalizing neighborhoods; and 2) training, capacity-building and technical assistance to ensure that grant-funded projects are successfully planned and implemented.

National Trust for Historic Preservation

The National Trust for Historic Preservation offers various grant programs from small seed funding to large capital grants. More information on their various grant programs available at https://savingplaces.org/grants.

Illinois State Historic Preservation Office Certified Local Government Matching Grants

The Illinois State Historic Preservation Office’s Certified Local Government (CLG) Matching Grants provide funding for historic resource inventory surveys, projects that involve planning, National Register listing, public outreach and education.

Illinois Transportation Enhancement Program

Illinois Transportation Enhancement Program (ITEP) provides funding for community based projects that expand travel choices and enhance the transportation experience by improving the cultural, historic, aesthetic, and environmental aspects of the transportation infrastructure. Learn more here.