Historic Tax Credit Programs are some of the most impactful tools Nebraskans have in promoting the economic revitalization of their communities. These programs provide tax credits for property owners who rehabilitate a historic building while retaining its historic character. Past projects have provided much-needed low-income housing, fixed-up public buildings like courthouses, and made downtown areas more attractive to small business owners. Tax credit programs also stimulate local economies by generating skilled jobs and local tax revenue.
There are three different tax credit programs:
- The Nebraska Historic Tax Credit: Provides a state tax credit of up to 20% of qualified rehabilitation expenditures
- The Federal Historic Tax Credit: Provides a Federal income tax credit for 20% of qualifying rehabilitation projects
- The Valuation Incentive Program (VIP): Freezes the assessed value of an approved property at the prehab value for 8 years. After 8 years, the assessed value gradually increases over 4 years until the current accessed value is reached
Each program is similar and you may be able to use more than one program for a rehabilitation project.
Click on the images below for more detailed information about each program. You can also watch a presentation about the three programs on YouTube.
Resources for Owners of Historic Properties
Hiring someone with a proven-record in historic preservation is especially important when the project is using historic tax incentives. We encourage property-owners to consider the special skills required for the successful rehabilitation of a historic building.
The companies/individuals in this directory have requested or consented to be placed on this list. The Nebraska State Historic Preservation Office is not endorsing any of these individuals or companies. We strongly recommend checking references, reviewing previous projects, and conducting careful interviews of prospective providers.
Historic Tax Credit Success Story
Historic tax credits made it possible for Cohen-Esrey, a real-estate development company, to convert the abandoned Hastings Brewery building into modern apartments with unique historic features. Tim Quigley of Cohen-Esrey describes this tax-credit project as a “win-win for the community, revitalizing the east side of downtown Hastings. It provided much needed affordable housing while preserving a historic building that was sentimental.” The building, now called the Brewery Lofts, has a waiting list of interested apartment seekers.