Expanding the Reach of the Federal Historic Tax Credit Program: An Equitable Reinterpretation of the Non-Historic Tax Credit

Since its first iterative debut in 1976, the federal Historic Tax Credit (HTC) program has evolved to become preservation’s strongest and most effective tool for the retention and rehabilitation of income-producing historic buildings. With nearly $123 billion in private investment, over 48,000 historic buildings have utilized the credit, preserving heritage that may have otherwise been lost to demolition or major alteration. A lesser recognized component of the HTC program though has been left out of this success narrative: the non-Historic Tax Credit. Created in 1978 and eliminated in 2017, the non-HTC operated outside the field of preservation. Since the National Park Service and State Historic Preservation Offices only handle certified-historic structures, the Internal Revenue Service was the only entity involved in the non-HTC’s execution and use. As a result, this has left a major gap in the history, research, and data available on this rehabilitation credit. This thesis intends to rectify that issue. Through an examination of the legislative history leading to the advent of the Historic Tax Credit program, and the iterative evolution of the HTC program itself, this thesis poses the non-HTC’s potential as an objective and more equitable tool in preservation and community revitalization. Supported by a case study on two Cincinnati neighborhoods (one a historic district and the other with a limited number of certified-historic resources), this study concludes with recommendations for reimplementing an amended version of the non-Historic Tax Credit to further bolster the Historic Tax Credit program as it stands today.