Federal and state tax incentive programs exist to make historic preservation economically viable for property owners. This guide provides a general overview of commonly available programs. Eligibility, program details, and available amounts change regularly — always verify current information with the administering agencies before making any decisions.
Important Disclaimer: This guide is for general informational purposes only and does not constitute tax, legal, or financial advice. Tax credit programs have specific eligibility requirements that this guide cannot fully address. Consult a tax professional and the relevant program administrators before undertaking any project in reliance on these programs.
The Federal Historic Tax Credit (HTC), administered by the National Park Service and the IRS, provides a 20% income tax credit for qualified rehabilitation expenditures on certified historic structures. To qualify, the property must be a certified historic structure (listed individually on the National Register of Historic Places or contributing to a National Register Historic District), used for income-producing purposes, and the rehabilitation must meet the Secretary of the Interior's Standards.
The credit applies to income-producing properties — rental housing, commercial buildings, mixed-use properties. It does not generally apply to owner-occupied residential properties used purely as a personal residence. However, property owners who rent out their historic home or who own historic commercial properties may be eligible.
Applications are processed through the State Historic Preservation Office (in Kentucky, the Kentucky Heritage Council) and the National Park Service. The process involves Part 1 (certification of the historic structure), Part 2 (approval of the proposed rehabilitation), and Part 3 (certification that completed work meets the standards).
Kentucky administers a state-level Historic Preservation Tax Credit program that complements the federal credit. This state program has been revised periodically; verify current program details, caps, and eligibility requirements directly with the Kentucky Heritage Council, which administers the program as the State Historic Preservation Office.
State credits may be available for both commercial/income-producing properties and, under some program versions, for owner-occupied residential properties. Eligibility and credit amounts vary; the Kentucky Heritage Council's website and staff are the authoritative source for current program details.
The City of Bowling Green and Warren County may offer local incentives for historic preservation, such as property tax abatements or local grants for facade improvements in historic districts. Contact the City of Bowling Green Planning & Zoning Department and the Warren County Historic Preservation Commission (if one exists) to ask about current local programs.
Grant funding for historic preservation is more limited and competitive than tax credit programs. Sources to explore include:
The Kentucky Heritage Council is the best starting point for any inquiry about preservation incentives in Kentucky. Their staff can advise on the National Register listing process (which is prerequisite to most tax credit programs), the state tax credit program, and available grant opportunities. Their contact information is available through the official Kentucky state government website.