HISTORIC PRESERVATION TAX INCENTIVE PROGRAMS

HISTORIC PRESERVATION TAX INCENTIVE

PROGRAMS

Updated August 2017

Tax Incentives for Rehabilitation

ABILENE

Tax exemptions are available for the rehabilitation of structures located within a local historic

district. The city compensates the property owner for all or part of the eligible costs of rehabilitation

by reducing the owner’s city property taxes for a period of up to 10 years. The exemption equals 50%

of the increased value of a structure after an approved rehabilitation project. Rehabilitation costs

must exceed $750.

In addition to the tax exemption for rehabilitation, the city offers an annual property tax exemption of

$200 or 20% (whichever is greater) for all properties located within a local historic district.

http://abilenetx.com/home/showdocument?id=7043

AUSTIN

Contributing properties in Austin’s locally-designated historic districts are eligible to receive a

tax abatement for qualified historic rehabilitation. The property owner must spend a minimum

amount on rehabilitation work including a certain percentage spent on the exterior in order to

qualify. The project must be approved by the Austin Historic Landmark Commission with a

Certificate of Appropriateness, and city staff will inspect the project at completion to certify

compliance. Once the project is certified, the city abates 100% of the city property taxes assessed

on the added value of the property for either 7 or 10 years, depending on the location and use of

the property.

https://www.austintexas.gov/sites/default/files/files/Planning/Historic_Preservation/lhd_tax_abat

ement_application.pdf

Austin also offers tax incentives to owners of local historic landmarks. Properties that are owner

occupied may be exempt from 100% of the value of the structure and 50% of the value of the

land for the city and county portion of the property tax. The school district will exempt 50% of

the value of the structure and 25% of the value of the land.

Income-producing local landmarks are eligible for an exemption at half the percentages as an

owner-occupied residence (i.e. 25% and 12.5%).

For newly-designated owner occupied landmarks, there is a cap of $8,500 ($2,500 by the city

and county and $3,500 by the school district). All property owners seeking the tax exemption

must file an annual application with the appraisal district and an affidavit with the city stating the

reason they are seeking the tax relief pursuant to the Texas Tax Code.

DALLAS

Tax exemption program for rehabilitating historic structures. The amount of tax exemption depends

on the type of property and how much the person invests in the property. Only properties designated

as a City of Dallas historic landmarks and properties contributing to a historic district are eligible.

The types of exemptions are broken up into four areas: endangered historic districts, urban historic

districts, revitalizing historic districts, and all other areas. These areas determine the minimum

required expenditure to be eligible.

http://dallascityhall.com/departments/sustainabledevelopment/historicpreservation/Pages/tax_incenti

ves.aspx

ENNIS

Landmarked structures are eligible for a property tax exemption of 25% of the assessed value of the

property, not to exceed $25,000. Non-residential structures in the designated historic downtown

district may receive a re-investment tax abatement equal to the amount of rehabilitation completed

within a calendar year, with a cap set at the annual tax liability of the property.

http://ennistx.com/downtown-incentives

FORT WORTH

Fort Worth’s tax exemption requires that an amount equal to or greater than 30% of the assessed

valuation of the improvements be spent on rehabilitation. The program freezes the assessed

valuations of the land and improvements at the pre-rehabilitation values for the purposes of assessing

city taxes. The exemption period is ten (10) years.

http://fortworthtexas.gov/planninganddevelopment/historic-preservation/tax-exemption/

GALVESTON

The city offers three different types of tax incentives. (1) all properties in newly designated historic

districts receive a 35% exemption on their city property taxes for five years. The exemption is also

available for newly designated Galveston Landmarks located outside of historic districts. (2) all

properties in newly designated conservation districts receive a 25% exemption on their city property

taxes for five years. (3) local landmarks and properties located within a local historic district are

eligible to receive a tax exemption for a rehabilitation that costs equal or more than 50% of the

improvement value. City property taxes are assessed at the pre-rehabilitation value for ten years.

http://www.galvestontx.gov/DocumentCenter/View/3221

GRANBURY

Residential structures that have been designated as local historic landmarks are eligible for an

exemption up to 100% of the city’s ad valorem tax assessed on the structure for a period of 10 years.

In addition, rehabilitation equal to $40,000 or more to residential structures located within the

historic neighborhood improvement zone are eligible to receive up to a 70% exemption of the city’s

ad valorem tax for the structure for a period of 10 years. Also, minor interior or exterior

improvements equally $15,000 or more to residential structures located within the historic

neighborhood improvement zone may receive up to 40% exemption of the city’s ad valorem tax for

the structure for a period of 10 years.

http://www.granbury.org/index.aspx?NID=634

HOUSTON

City of Houston Landmarks, Protected Landmarks, or buildings that have been classified as

“contributing” or “potentially contributing” within a Historic District qualify for the tax exemption.

The rehabilitation must amount to at least 25% of the assessed value of the improvements on the

land. The percentage of the tax exemption (from 25% up to 100%) is dependent on the amount of

qualified expenditures relative to the pre-rehabilitation value. The tax exemption applies to the tax on

the improvement only, not the land, for up to 15 years. The exemption only applies to the City of

Houston taxes.

The City of Houston also offers a tax exemption for “significant” historic buildings. The building

must have more than four residential units and originally built and used for non-residential purposes.

The significant historic building may be exempted from city ad valorem taxes for both improvements

and land, up to $30,000 per year in perpetuity.

http://www.houstontx.gov/planning/HistoricPres/hist-incentives-broch.pdf

KILLEEN

Commercial and multifamily units are eligible to receive a tax exemption on the added value of a

property after a rehabilitation for up to five years. Rehabilitation must equal at least 25% of the

assessed value.

http://www.killeentexas.gov/index.php?section=310

KINGSVILLE

Properties designated at the federal, state, or local level may apply to the city for municipal ad

valorem tax relief based on rehabilitation expenses.

http://www.cityofkingsville.com/departments/planning-and-development-services/community-

appearance-grants/

MCALLEN

Currently, the City of McAllen offers an exemption from the annual city ad valorem taxation to

incentivize local designation, proper maintenance, and rehabilitation of historic properties. The

incentive program also ensures that property owners comply with the requirements of the Certificate

of Appropriateness process.

To encourage regular maintenance, local landmarks may apply for a tax exemption in perpetuity

equal up to 50% of the assessed value of the historic structure and the land. While properties

designated at the federal or state level qualify for an exemption equal up to 100% of the assessed

value of the structure and land.

The City also incentivizes historic rehabilitation. Heritage Properties, which are defined as properties

that are at least 50 years old but are not listed as local landmarks, qualify for an ad valorem tax

exemption equal to 100% of the increase in the assessed value post rehabilitation. The exemption is

good for 10 years. Similarly, properties located in a local historic district may apply for an ad

valorem tax exemption for 5 years equal to 100% of any increase to the assessed value post

rehabilitation.

https://library.municode.com/tx/mcallen/codes/code_of_ordinances?nodeId=PTIICOORSUGEOR_C

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MOUNT VERNON

Property will be taxed on the pre-rehabilitation value for up to 10 years after a rehabilitation of a

historic, commercial building.

http://www.comvtx.com/default.aspx?name=economic.development

NEW BRAUNFELS

Locally designated landmarks are eligible to receive tax exemptions for rehabilitation which

represents at least 10% of the value of the property and which improvements extend the life of the

structure. The pre-rehabilitation value is used to calculate the city’s ad valorem tax for five years. In

the fourth year of the relief, the applicant may apply to have the relief extended for an additional five

years.

In addition to tax exemptions for rehabilitation, the City of New Braunfels offers a 20% reduction in

city assessed ad valorem taxes for properties located within a locally designated historic district.

http://www.nbtexas.org/1091/Benefits

PALESTINE

Tax relief is given to property owners who undertake a rehabilitation. Relief period is up to five

years.

http://www.cityofpalestinetx.com/users/OldFiles/upload/Historic%20Property%20Handbookpdf.pdf

PARIS

Historically significant sites are eligible to receive a tax exemption equal to 100% of any increase in

assessed value after a substantial rehabilitation for a period of seven years. Rehabilitation must cost

$5,000 or more for residential, and $10,000 for commercial. Only work on the exterior will be

eligible.

In addition to the tax exemption for rehabilitation, historically compatible new construction shall be

exempted, for a period of three years, 100% of any increase in the assessed value.

https://www.paristexas.gov/index.aspx?NID=305

SAN ANTONIO

A local tax exemption is available for designated local landmarks and properties within local historic

districts that undergo a substantial rehabilitation. Following the rehabilitation, city property taxes are

frozen at the assessed value prior to the rehabilitation for ten years. Commercial properties that

undergo a substantial rehabilitation are eligible for the 5 zero/5 fifty tax exemption. This exemption

means no city property taxes are owed for the first five years, and for the next five years the city

taxes are assessed at 50% of a post-rehabilitation appraisal.

San Antonio also offers a tax exemption for owner-occupied residences in new historic districts. All

residential properties occupied by the property owner in newly designated local historic districts at

the time of designation receive a 20% exemption on their city property taxes for ten years. The

exemption can be extended for an additional five years.

http://www.sanantonio.gov/historic/Programs/incentives

SEGUIN

Properties located in the downtown historic district which undergo a substantial rehabilitation

(spending $2,000-$500,000) may be exempt from taxation on the increase in value following

rehabilitation for up to five years. Rehabilitations which cost more than $500,000 may be exempt

from the increase in value following rehabilitation for up to ten years.

Owners of Recorded Texas Historic Landmarks located in Seguin are eligible to receive a tax

exemption equal to the amount they have spent in the year on maintaining the property.

Documentation verifying the expenses must be provided, and owners must apply each year.

http://www.seguintexas.gov/departments/main_street/historic_preservation.php

TYLER

The city offers a tax exemption for rehabilitation in the amount equal to 100% of any increase in the

assessed value for the purposes of ad valorem taxes levied by the City of Tyler for a period of five

(5) years following issuance of a Certificate of Appropriateness and provided the property maintains

its landmark status.

The city also allows for 50% of the assessed value (up to $2 million) of any building listed on the

Tyler Historic Landmark Register to be exempt from annual city ad valorem taxation provided that

the property maintains its local landmark status.

http://www.cityoftyler.org/Departments/HistoricPreservation/HistoricTaxAbatementCredits.aspx

WACO

Any property which has been designated as a historic landmark shall qualify for an exemption of

City ad valorem taxes, provided that the historic landmark has been determined by the City Council

to be a historically or archaeologically significant site in need of tax relief to encourage its

preservation. The tax exemption shall exempt from city ad valorem taxation any increase in the

assessed value of the building or structure and the land necessary for access and use of the

building/structure following the designation by the City Council for a period of 10 years.

http://www.waco-texas.com/planning-hlpc-information.asp#incentives

WAXAHACHIE

Waxahachie offers an exemption of 25% of the assessed value of the property, not to exceed $25,000

for designated city landmarks which are in full compliance with city regulations, including adherence

to decisions of the Waxahachie Historic Preservation Commission. The exemption applies to both

residential and commercial properties. Applications for the tax exemption must be filed every year.

Waxahachie also offers a rehabilitation exemption of up to 50% of the total property tax bill for

rehabilitation amounting to at least $1,250 in improvements to a property designated at the city, state,

or federal level. The Waxahachie Historic Preservation Commission oversees all restorations under

this incentive program. The applications must be filed annually.

http://www.waxahachie.com/Departments/HeritagePreservation

Maintenance Only Tax Incentives

BROWNSVILLE

Properties listed on the National Register or designated as an RTHL are exempted from all ad

valorem taxation by the city.

Properties designated as a primary resource are granted an ad valorem tax exemption equal to 50% of

the gross assessed value of the site.

https://library.municode.com/tx/brownsville/codes/code_of_ordinances?nodeId=PTIICOOR_CH348

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PLANO

Plano’s tax exemption program offers a full or partial exemption based the designation and use of the

property. See table below. The money saved by participating in the program is meant to be used by

the participant to make improvements and repairs to the structure. Exemptions apply to the

improvements only, not the land. http://www.plano.gov/2737/Tax-Exemption-Program

ROUND ROCK

Historically-significant residential and commercial property owners may receive a 75% exemption of

municipal property taxes. The program encourages properties to use money saved on taxes to provide

regular maintenance and/or repair to their historic structures.

https://www.roundrocktexas.gov/departments/planning-and-development-services/historic-

preservation/historic-tax-exemption/

UVALDE

The City of Uvalde and Uvalde County grant a 25% exemption of the assessed value for properties

listed on the National Register or designated an RTHL. City landmarks are eligible for city tax

exemption only. The exemption was created to encourage proper maintenance of historic structures;

therefore, maintenance standards are verified.

http://www.uvaldetx.com/content/historic-preservation