Governor Hochul Announces New York State Leads Nation in Use of $2.27 Billion in Historic Rehabilitation Tax Credits to Restore and Improve Historic Buildings in 2025

Governor Kathy Hochul today announced that for the ninth consecutive year, New York State leads the nation in the use of State and Federal Historic Rehabilitation Tax Credits to restore and improve landmark buildings across the state. In the National Park Service's 2025 report, data for New York shows that 460 building rehabilitation projects were completed, are under construction, or in the planning phase. The 106 completed projects represent $2.27 billion in total rehabilitation investments, supporting more than 37,000 jobs, $1.6 billion in income, and $4.28 billion in economic output. The investment in New York State rehabilitation projects was three to four times that of the next three leading states, Ohio, Illinois, and Texas, respectively.

"From Buffalo to Binghamton and Watertown to Manhattan, New York's landmark buildings are coming back to life as much-needed housing, retail and office space," Governor Hochul said. "By successfully leveraging these State and Federal rehabilitation tax credit incentives, New York is attracting new and significant private investments and creating more housing opportunities in communities across the state."

State and Federal rehabilitation programs have been instrumental in the adaptive reuse of historic properties to create new housing units or rehabilitate existing units. Since federal fiscal year 2021, New York State has made strong use of the program, with property owners completing 606 projects and a nation-leading total of $9.33 billion in investments. One-hundred-and-sixty-four affordable housing projects have used the historic tax credit programs since 2021, creating 5,101 new low-to-moderate income housing units and revitalizing 30,066 units. Public housing authorities across the state, including New York City, Middletown, Newburgh, Kingston, Albany, Troy, Cohoes, Watervliet, Elmira, Perinton, and Tonawanda, are among the wide range of public and private entities using or preparing to use this incentive.

New York State Office of Parks, Recreation and Historic Preservation Commissioner Kathy Moser said, "State and Federal Historic Rehabilitation Tax Credits are powerful tools for driving economic development, expanding housing opportunities, and breathing new life into historic properties. Thanks to Governor Hochul's continued commitment to historic preservation and addressing New York's housing needs, these incentives are helping communities across the state revitalize vacant or underutilized properties into much-needed housing and new opportunities while honoring our state's rich history.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "The use of State and Federal Historic Rehabilitation Tax Credits not only demonstrates New York's commitment to rehabilitating underutilized sites and preserving history, it complements Governor Hochul's five-year Housing Plan that is on track to create and preserve 100,000 affordable homes statewide. Since 2021, more than 35,000 affordable units have been created or preserved using historic tax credits - a vital tool in leveraging additional investment to address the housing crisis and revitalize communities. HCR is dedicated to collaborating with partners in employing this critical resource so that historic gems can be brought back to life and individuals and families can have a safe, stable place to call home."

New York State Department of Taxation and Finance Acting Commissioner Amanda Hiller said, "We're pleased to be part of the team administering New York's historic rehabilitation tax credits. These tax credits help property owners rehabilitate and preserve the historic structures that anchor our communities."

President of the Preservation League of New York State Jay DiLorenzo said, "New York State has demonstrated time and again that our historic buildings are valuable community assets that can be effectively rehabilitated to provide housing, space for small businesses, a home for the arts, and so much more. Thanks to the leadership of Governor Hochul, we continue to enhance the State Historic Tax Credit Program to make it an even more powerful tool for revitalization of communities in every corner of New York State."

Prepared by the Rutgers University Center for Urban Policy Research through an agreement with the National Park Service, the National Park Service's 2025 report examines the direct and secondary economic effects associated with historic rehabilitation investments.

Owners of income-producing real properties listed on or eligible for the National Register of Historic Places may be eligible for a 20 percent federal income tax credit and a 20 to 30 percent state credit for the substantial rehabilitation of historic properties. The final credit amount is based on the cost of the rehabilitation. Property owners must be approved for the federal credit to be eligible for the state's credit. The state's credit is capped at $5 million per building rehabilitation, which is generally restricted to eligible census tracts for commercial uses but is now available statewide for the purposes of creating affordable housing. Find more information on the tax credit program.

The Governor's Enacted Budget for State Fiscal Year 2024-25 expanded the use of historic tax credits for affordable housing efforts, bolstering the State's affordable housing creation and preservation goals. Use of the New York State rehabilitation tax credit was previously restricted to properties in census tracts at or below the state family median income. The enacted budget lifted this restriction if the rehabilitation is for the purpose of creating affordable housing. In addition, technical amendments to the law were made to increase opportunities for investors to participate in the program.