The Department of the Interior today announced the release of the annual economic impact report for the Federal Historic Tax Credit for fiscal year 2025, highlighting the program's substantial contributions to American jobs, housing creation, private investment, economic growth and community revitalization.
The report, prepared by Rutgers University's Center for Urban Policy Research through a cooperative agreement with the National Park Service, found that Historic Tax Credit-supported rehabilitation projects generated an estimated $9.6 billion in private economic investment, supported approximately 163,000 jobs and generated $6.8 billion in income and $9.2 billion in gross domestic product.
"Historic preservation is an investment in America's future," said Secretary of the Interior Doug Burgum. "The Historic Tax Credit demonstrates how preserving the buildings and places that tell America's story can also create jobs, encourage private investment and strengthen communities. This is the kind of economic activity that delivers value to the American people while ensuring that historic properties remain productive assets for generations to come."
In FY 2025, the National Park Service certified 939 completed historic rehabilitation projects, representing approximately $9.6 billion in total rehabilitation investment, while approving 1,170 proposed projects. The related Federal Tax Incentives for Rehabilitating Historic Buildings Annual Report for Fiscal Year 2025, which provides statistical information on program activity was issued in March 2026.
The economic benefits extended well beyond the construction industry. FY 2025 Historic Tax Credit-related activity generated approximately $6.8 billion in income, $9.2 billion in GDP and $18.1 billion in total economic output to the U.S. economy.
Historic preservation with nationwide economic benefits
The reports demonstrate that the Historic Tax Credit is not limited to major cities or large redevelopment projects. In FY 2025:
- 24% were located in communities with populations below 25,000.
- 45% of certified rehabilitation projects were located in low- and moderate-income census tracts.
- 72% were located in economically distressed areas.
- 36% of projects had qualified rehabilitation expenditures of less than $1 million.
- 10% had qualified rehabilitation expenditures of less than $250,000.
- 34% were located in communities with populations below 50,000.
- 24% were located in communities with populations below 25,000.
The FY 2025 report also documents the program's cumulative impact. Since the first completed rehabilitation project was certified in FY 1978, the Historic Tax Credit has leveraged approximately $269.2 billion in inflation-adjusted rehabilitation investment, generated 3.6 million jobs, produced $285.1 billion in GDP and $569.8 billion in economic output.
Supporting housing creation
The report identifies how the program supports the creation of new housing and the rehabilitation of existing housing, including affordable housing. In FY 2025:
- 11,544 new housing units were created through the adaptive reuse of historic buildings.
- 10,390 existing housing units were rehabilitated.
- 53% of the 21,934 total created or rehabilitated housing units were low- and moderate-income units.
Since the program's inception, over 377,000 new housing units have been created, and some 330,000 existing housing units have been rehabilitated, with about a third of the total consisting of low- and moderate-income units.
Bringing historic buildings back to life
The report highlights projects demonstrating how the Historic Tax Credit can transform long-vacant and underused properties.
- In Temple, Texas, the rehabilitation of the historic Hawn Hotel, Arcadia Theatre and an adjacent commercial building transformed a block of vacant buildings into a mixed-use development featuring 59 new housing units, commercial space and an events venue. The $32.4 million combined project helped bring new life to the city's historic downtown.
- In Lawrence, Massachusetts, the vacant 1848 Stone Mill was converted into 86 apartments, including 69 affordable housing units as part of the $53 million rehabilitation, while retaining the building's historic industrial character.
- In Little Rock, Arkansas, a long-vacant 400,000-square-foot former Veterans Administration Hospital Building was converted into 200 new housing units as part of the largest historic tax credit rehabilitation project ever completed in the state.
- In Logan, Utah, a $565,000 rehabilitation transformed [https://veterans%20administration%20hospital%20building/]Dale's Sinclair Service Station, a 1955 Streamline Moderne gas station, into a retail flower and gift store.
The full Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2025 is available online.
About the Historic Tax Credit Program
The Federal Historic Preservation Tax Incentives Program was established in 1976 and is administered by the National Park Service's Technical Preservation Services. It provides a 20% federal income tax credit to owners who undertake a substantial rehabilitation of a historic building used for business or other income-producing purposes while maintaining the property's historic character.
The National Park Service evaluates the historic significance of properties and reviews proposed and completed rehabilitation work to determine whether it meets the program's preservation requirements. The IRS administers the tax aspects of the program.
