Federal Tax Credit

The federal government encourages the rehabilitation of historic buildings through a tax incentive program. Beginning with the 1976 Tax Reform Act and the 1978 Revenue Act, federal tax law has contained provisions that favored the retention of older buildings. In 1981, Congress further encouraged preservation with a change in the tax code that allowed taxpayers a credit equal to twenty-five percent of qualified expenditures for certified and substantial rehabilitation of qualified buildings. The 1986 Tax Reform Act retained the credits, though at a reduced rate. Current (1991) law provides for a twenty percent credit upon the expenses incurred in rehabilitating a certified historic building and a ten percent credit for buildings more than fifty years old. The current law applies only to income-producing properties.

The tax law also permits a charitable deduction for federal estate and income tax purposes to a landowner who makes a "qualified conservation contribution" of land. The code defines that contribution as a "qualified real property interest" to a qualified organization exclusively for conservation purposes. Among such purposes are the preservation of a certified historic structure. A further provision in the federal tax code favoring historic preservation is one that exempts the interest on Industrial Revenue Bonds employed for historic preservation purposes from federal taxation under Section 103 (b) of the Internal Revenue Code of 1954. While each state has a precise limitation upon the amount that can be exempted, the quota is generous. This federal incentive for historic preservation will probably remain substantial.

For more information regarding these incentives please contact The Division of Historical Resources, Florida Department of State, 500 South Bronough, Tallahassee, Florida, 32399-0250 (904-487-2333).

Local Property Tax Exemption

In November of 1992, Florida voters overwhelmingly approved by referendum an amendment to the Florida State Constitution authorizing units of local governments to provide a partial ad valorem property tax exemption to owners who rehabilitate historic properties. In April of 1994, the Jacksonville City Council approved Ordinance 94-308-168 which provided for a ten year, one hundred (100) percent property tax exemption for the value of improvements to historic properties designated under Jacksonville's historic preservation ordinance. The Jacksonville Historic Preservation Commission approved the use of the model tax exemption application prepared by the Florida Division of Historical Resources. Information and application for the local property tax exemption are available from the Jacksonville Planning and Development Department.

Back to Riverside/Avondale Guidelines
Back to Springfield Guidelines