Climate Adaptations Now Eligible For Rehabilitation Tax Credit
preservation-admin , May 10, 2022
In late April, new guidance was published on qualifying expenditures for the Historic Rehabilitation Tax Credit that includes measures for making structures more resilient to changing climate conditions. Costs associated with flood adaptation, such as installation of permanent flood gates and barriers, use of floodproofing materials, elevation of buildings, or construction of seawalls are now considered eligible. This tax credit is offered by the Federal Government to income-producing properties listed on the National Register of Historic Places and requires all work to be done in accordance with the Secretary of Interior’s Standards for best practices in historic preservation.
Expanding qualifying tax credit expenditures is big news, and comes on the heels of the National Park Service publishing Guidelines on Flood Adaptation for Rehabilitating Historic Buildings. For years, Charleston has paved the way in pioneering sensitive adaptation strategies for flood-prone historic properties, and we are pleased to see the Federal Government follow suit to incentivize resilient practices in preservation.