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Federal Historic Tax Credits (§47)

20% federal credit for rehabilitating certified historic buildings.

Overview

IRC §47 gives a 20% federal tax credit on Qualified Rehabilitation Expenditures for certified historic structures (National Register or contributing to a historic district). Credit is monetized via a tax-credit-investor equity partnership — turning into 15–18 cents of soft equity per rehab dollar. Stackable with state HTCs (often another 20–25%), NMTC, and OZs. Common in urban adaptive-reuse deals.

Best fit
Adaptive-reuse developersUrban infill sponsorsMixed-use conversions
Estimated impact
15–18% equity from federal + 20–25% additional from state HTC

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