New York topped the country in 2024 for using historic rehabilitation tax credits, Governor Kathy Hochul announced Tuesday, driving billions in investment and supporting the creation of affordable housing across the state.
“The State’s landmark buildings continue to find new life through the support of Federal and State incentives for historic properties,” Hochul said. “New York State’s rehabilitation tax credit programs are attracting strong private investment to these properties, spurring much-needed quality, affordable housing and bringing new life to our communities.”
According to the National Park Service, 154 historic building projects in New York were completed, underway, or in planning last year, generating $2.8 billion in economic activity. The state more than doubled the number of projects and tripled the investment seen in the next leading states, Ohio and Texas.
Since federal fiscal year 2019, New York property owners have completed 491 rehabilitation projects through the program, totaling $5.06 billion in investment. A growing share of that work is creating affordable housing: since 2022, 106 projects have added 1,757 new affordable units and restored 2,412 existing ones.
The budget enacted this year expands access to the state’s credit by lifting location restrictions when affordable housing is the goal. Previously, the credit was limited to census tracts at or below the state’s median family income. Technical changes have also been made to help more investors qualify.
Randy Simons, Commissioner of the State Office of Parks, Recreation and Historic Preservation, said the credit is “helping to revitalize notable buildings, foster job growth, create more housing, and renew a sense of pride among New Yorkers for our state’s heritage.”
RuthAnne Visnauskas, head of New York State Homes and Community Renewal, called the program “a vital tool in our toolbox as we address the affordable housing crisis.” She said it is backing more than 4,000 affordable homes while strengthening communities.
Eligible property owners may qualify for a 20 percent federal credit and a 20 to 30 percent state credit for substantial work on historic buildings listed on or eligible for the National Register of Historic Places. The state credit is capped at $5 million per building and usually applies to income-producing commercial properties, but now applies statewide when affordable housing is created.
Michael Shollar, Executive Deputy Commissioner at the Tax Department, said the credits offer “important incentives for the preservation of historic buildings and help revitalize communities.”
Jay DiLorenzo, President of the Preservation League of New York State, called the expanded program “transformational,” saying it fuels jobs, housing, and local economic growth while reducing waste. “Enhancements to the New York State program spearheaded by Governor Hochul means that even more communities will benefit from this powerful economic development tool.”
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