Restoring a historic building keeps its character alive while giving it a new purpose. Property owners can use different financial incentives to help cover the cost of repairs and upgrades. These programs, including tax credits and grants, encourage people to invest in properties with cultural and architectural value.
Federal tax credits for rehabilitation
The Federal Historic Preservation Tax Incentives program gives a 20% income tax credit for certified rehabilitation of income-producing historic buildings. To qualify, the building must be listed on the National Register of Historic Places or be part of a registered historic district. Owners must follow the Secretary of the Interior’s Standards for Rehabilitation, which help protect historic features while allowing needed updates.
Mississippi state historic tax credit
The Mississippi Historic Preservation Tax Credit adds another 25% credit for qualified rehabilitation costs. This program works for both commercial properties and owner-occupied homes. Homeowners must spend at least $5,000 on eligible work, while commercial projects must meet an investment amount based on the property’s value. Owners can combine the state and federal credits to save even more. If the credit is bigger than the yearly tax bill, the owner can carry it forward for up to ten years or choose a 75% refund.
Grants that support restoration
The state also offers grants to help with restoration projects. The Community Heritage Preservation Grant Fund helps restore important public buildings like courthouses and schools. The Historic Sites Grant Program offers matching funds for properties connected to the state’s cultural, civil rights, and military history. These grants usually require a one-to-one funding match, which encourages both public and private contributions.
Incentives for restoring historic properties help protect heritage, grow the economy, and improve communities. Restored buildings often raise property values, attract visitors, and inspire more investment. Property owners who use these programs can complete restoration projects that benefit both their finances and their community.
