The historic preservation tax credit program, both state and federal, has made it possible to rehabilitate many historic buildings across the state.
The recent New York State budget expands the use of historic tax credits for affordable housing efforts. Use of the New York State rehabilitation tax credit was previously restricted to properties in census tracts at or below the state family median income; however, the restriction has been lifted if the rehabilitation is for the purpose of creating affordable housing. Suffolk will benefit from these changes in eligibility.
“Suffolk County has had a relatively low usage of the credit due to the lack of eligible census tracts. However, due to the enhancements included in the budget, there now 8 additional properties that have recently come into the program and will be submitting designs for approval,” said. Dan Keefe, Public Information Officer for the NYS Office of Parks, Recreation and Historic Preservation.
The details on the eight newly eligible Suffolk County projects have not been released yet as they are not through the final approval process.
There have been four completed historic tax credit projects in Suffolk County since 2017:
- Bates House, Village of Greenport
- Thomas and Mary Nimmo Moran House and Studio, Village of East Hampton
- Abraham Lowerre House, Southold
- Old Field Club Beach Pavilion, Old Field
Governor Hochul said. “New York State’s rehabilitation tax credit programs are attracting strong private investment to these properties, spurring much-needed quality, affordable housing and bringing new life to our communities.”
Preservation League of New York State President Jay DiLorenzo said, “Historic rehabilitation tax credits have proven transformational for communities and Main Streets throughout New York State. Reusing our existing buildings creates local construction jobs, provides space for small businesses, creates much-needed housing, and keeps demolition debris out of our landfills.”
Owners of income-producing real properties listed on or eligible for the National Register of Historic Places may be eligible for a 20 percent federal income tax credit and a 20 to 30 percent state credit for the substantial rehabilitation of historic properties. The final credit amount is based on the cost of the rehabilitation. Property owners must be approved for the federal credit in order to be eligible for the state’s credit. The state’s credit is capped at $5 million per building rehabilitation, which is generally restricted to eligible census tracts for commercial uses but now is available statewide for the purposes of creating affordable housing.
The number of New York State rehabilitation projects was more than double and the total economic activity was more than three times that of the next leading states (Ohio and Texas respectively). New York State led the nation in the use of State and Federal Historic Rehabilitation Tax Credits to improve landmark buildings across the state in 2024.