Funding & Incentives


Tax Incentives


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Federal Historic Preservation Tax Credit Programs

The Federal Historic Preservation Tax Incentives program encourages private sector investment in the rehabilitation and re-use of historic buildings. It creates jobs and is one of the nation's most successful and cost-effective community revitalization programs. It has leveraged more than $102.64 billion in private investment to preserve 45,383 historic properties since 1976. The National Park Service and the Internal Revenue Service administer the program in partnership with State Historic Preservation Offices.

The program permits the owner of an income-producing historic building to
seek an income-tax credit equal to 20% of the qualified rehabilitation expenditures. An
income-producing property may encompass commercial space, office space, rental
apartments, a bed and breakfast inn, etc., or a mixture of such uses. The building must
be listed in the National Register of Historic Places, either individually or as a
contributing property of a historic district. Further, the rehabilitation must meet the
Secretary of the Interior’s Standards for Rehabilitation.

CLICK HERE FOR MORE INFO

National Trust Community Investment Corporation

The NTCIC is an affiliate of the National Trust for Historic Preservation, is among the largest tax credit syndicators in America. The organization supports the country's architectural heritage, community development, and renewable energy initiatives through the provision of Federal and State Historic Preservation, Low-Income Housing, Renewable Energy, and New Markets Tax Credits.

Web link:  https://ntcic.com/

Delaware Historic Preservation Tax Credit Program

The Delaware State Historic Preservation Office (DE SHPO) administers this state
incentive program.

FIND OUT MORE HERE

Delaware Downtown Development District (DDD) Rebate
Program

The Downtown Development Districts Act was created to leverage state resources in a
limited number of designated areas in Delaware's cities and towns to:

  • spur private capital investment in commercial business districts and other
    neighborhoods
  • stimulate job growth and improve the commercial vitality of our cities and towns,
    and
  • help build a stable community of long-term residents in our downtowns and other
    neighborhoods.

Funding has been allocated through the General Assembly to Delaware State Housing
Authority (DSHA) for the purpose of establishing and administering the DDD Rebate

Program. Investors who make Qualified Real Property Investments (QRPI) to
commercial, industrial, residential, and mixed-use buildings or facilities may apply to
DSHA for a DDD Rebate. The DDD program, administered for each certified district by
the Delaware State Housing Authority, supports large and small development projects
with rebates of up to 20% of qualified costs. This program can be layered with the
Delaware Historic Preservation Tax Credit program, for qualified historic properties
within DDD districts.

FOR MORE INFO

Kent County Tax Credit Program for Historic Properties

This program offers tax credits for historic properties listed in the National Register of Historic Places based on preservation, rehabilitation, and/or restoration projects involving exterior improvements to the architectural facades of buildings. It is a tool to encourage visible rehabilitation and helps to protect elements of Kent County's heritage by encouraging investment in and continued use of existing buildings.

FOR MORE DETAILS

For guidance, contact the Historic Preservation Planner:
Kent County Department of Planning
414 Federal Street, Room 320
Dover, DE 19901
(302) 744-2471
(302) 736-2128 fax

New Castle County Tax Credit Program for Historic Properties

Properties within New Castle County zoning jurisdiction that are listed on the National
Register of Historic Places or within the bounds of an Historic overlay zoning district
may be eligible for historic tax credits on County property tax. For more information on
the New Castle County Historic Tax Credit Program, contact Betsy Hatch, Preservation
Planner.

Wilmington Property Tax Exemption Incentive Program

Properties which are on the National Register of Historic Places or within a City Historic District (overlay zoning) are eligible for this incentive program, which amounts to abatement of any increased tax assessment resulting from a substantial and qualified rehabilitation or new construction. There is no maximum increased valuation limit. Renovation of an existing structure carries an abatement period of 10 years from the date of the increased assessment; new construction carries an abatement period of 5 years. The work must meet City Historic District requirements and the City’s Finance Director must approve a documentation package. The ordinance may be viewed from the City’s website. Contact the Department of Planning if you intend to apply.

FOR MORE INFO


Other Funding & Grant Assistance

Delaware Preservation Fund

The Delaware Preservation Fund, a program under Preservation Delaware, provides
financial assistance to owners of historic properties, usually in the form of mini-grants
and loans for rehabilitation or restoration. Seed money for the Fund was provided
through the Delaware General Assembly and the Longwood and Welfare Foundations.
The Delaware Preservation Fund aims to assist in preserving the architectural heritage
and the historic built environment of Delaware through financial assistance to owners of
such properties, through grants, loans, acquisition of endangered properties, and
related support programs.

All the Fund’s programs target buildings which are on, or eligible for listing on the
National Register, or which are located in a designated historic district. Historic
resources, such as ships, railroad items, fountains, cemeteries or statuary that may be
listed individually, or which contribute to local or National Register historic districts, also
qualify for consideration. All work funded must comply with the Secretary of the
Interior’s Standards for the Treatment of Historic Properties.

LEARN MORE ABOUT THE DELAWARE PRESERVATION FUND

Delaware Community Foundation Capital Projects Grants

Grants will support construction, renovation or repair of buildings, and/or land
purchases, so nonprofits statewide can operate as efficiently and effectively as possible.

Generally, grants will not exceed $20,000 other than on rare occasions due to their
exceptional merits, based on the discretion of the DCF Grants Committee. Grants will
support organizations and initiatives so all Delaware residents can overcome barriers to
success, benefit equitably, and thrive.

LEARN MORE HERE

National Fund for Sacred Places

The National Fund for Sacred Places is a program of Partners for Sacred Places in
collaboration with the National Trust for Historic Preservation.

The Fund provides:

  •  grants for the planning and execution of urgent capital projects at historic
    churches that are valued for their cultural importance as well as their role in
    providing human services, strengthening communities, and revitalizing
    neighborhoods.
  •  training, capacity-building and technical assistance to ensure that grant-funded
    projects are successfully planned and implemented.

MORE INFO ON THE NATIONAL FUND FOR SACRED PLACES


Other Incentives

New Castle County Historic Marker Program

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The Historic Marker Program is an honorary method to recognize New Castle County’s officially designated historic resources located within the bounds of a New Castle County Historic Overlay Zoning district. For more information or to find out if your property is eligible or could become eligible,please review the Historic Marker Program Application.





Tax Benefits for Historic Preservation Easements

A historic preservation easement is a voluntary legal agreement, typically in the form of
a deed, that permanently protects an historic property. Through the easement, a
property owner places restrictions on the development of or changes to the historic
property, then transfers these restrictions to a preservation or conservation organization
or government entity. A historic property owner who donates an easement may be
eligible for tax benefits, such as a Federal income tax deduction. Easement rules are
complex, so property owners interested in the potential tax benefits of an easement
donation should consult with their accountant or tax attorney. Learn more about
easements in Easements to Protect Historic Properties: A Useful Historic Preservation
Tool with Potential Tax Benefits.

Delaware Distressed Cemetery Fund

The Distressed Cemetery Fund (Fund) is a state fund that was established in 2009 (29 Del. C. §7901A) under the Department of Health and Social Services, Division of Public Health, to assist owners or volunteers of cemeteries who meet the definition of a distressed cemetery and who do not have the necessary funds to complete the proposed work.

To learn more please visit:  Guidelines for Distressed Cemetery Fund.

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