There are two preservation tax credits available to owners of income-producing historic buildings. Click on each for more information:
By using both tax credits in combination, a property owner can earn a tax credit equal to 50% of the cost of restoring a historic property.
These credits should not be confused with tax deductions. Tax credits are direct, dollar-for-dollar credits against the amount of tax owed to the state and federal governments. Unlike tax deductions, the credits are applied after the tax is calculated, and thus have a greater impact on the amount to be paid. For example, if a person owed $5,000 in taxes and had a $2,000 credit, s/he would pay only $3,000.