Real Estate Tax Credits and other Financial Incentives for Investing in Historic Property in the United States

This paper examines the legislative and administrative background for designating historic property for protection in the United States (US) and their rehabilitation against a whole series of financial inducements and mechanisms. The preservation of heritage buildings in the US forms an integral part of the property market. Market forces and government regulations in the form of preservation law, standards for rehabilitation and the revenue code dictate the success or failure of renovating historic buildings. At all levels of governments (federal, state and local) there has been a growing reluctance in recent years to increase regulatory burdens and fiscal constraints on private citizens. A number of incentives including tax credits, abatements and freezes, direct grant aid, debt financing support, revolving funds, revenue raising bond schemes and various other programmes are examined. The economic benefits associated with such incentives have been scrutinised from the evidence of a number of studies.