Can the Historic Tax Credit (HTC) Program Be Used in Opportunity Zones?
The Historic Tax Credit (HTC) program is offers a federal tax credit to investors who rehabilitate and re-purpose historic buildings. To encourage investment, the program allows participants to take 20% of a project’s eligible rehab expenses as a credit against their federal income taxes. The program, which began in 1976, has been utilized for the rehabilitation of over 40,000 historic buildings. In contrast, the Opportunity Zones program offers investors a way to defer and/or reduce their capital gains tax liability by investing in properties and businesses located in Qualified Opportunity Zones (QOZs), economically disadvantaged areas certified by the U.S. Department of the Treasury.