Federal Tax Credits Support $116M in Indiana Projects
Owners of historic properties utilize federal credits to cover 20% of their rehabilitation costs.
Updated on Oct. 30, 2026 in Employment
Live Poll
Should governments provide tax credits to encourage the rehabilitation of local historic buildings?
Federal tax credits spurred $116.6 million in historic property rehabilitation across Indiana during the 2025 fiscal year. These projects supported 2,044 jobs in the state as developers utilized the federal program to offset renovation costs.
Why it matters
The federal historic tax credit program provides a vital financial incentive for the rehabilitation of older properties that might otherwise be economically unfeasible to restore. With Indiana having eliminated its own state-level historic tax credit in 2016, federal support remains a primary mechanism for local preservation and revitalization efforts.
Federal tax credits facilitated $116.6 million in Indiana building rehabilitation in fiscal year 2025, which ran from October 2024 through September 2025. These investments helped support 2,044 local jobs.
The players
Federal Historic Tax Credit
A federal incentive program that allows property owners to claim a credit equal to 20% of costs associated with rehabilitating certified historic buildings.
The details
Property owners use the federal historic tax credit to claim a credit worth 20% of their qualified rehabilitation expenditures. To qualify, developers must navigate a formal historic certification and review process. By reducing the net cost of renovation, the credit allows developers to undertake projects that transform aging infrastructure into viable commercial or residential spaces, such as hotel conversions or office space updates.
Timeline
October 1, 2024, through September 30, 2025, marked fiscal year 2025 for the federal program.
The Illinois Building hotel conversion was completed in December 2024.
The Ben Hur Life Insurance Building conversion was finished in January 2026.
The Arts United Center rehabilitation concluded in May 2026.
Money Landscape
The federal program currently serves as the primary driver for historic redevelopment in Indiana following the 2016 repeal of the state-level tax credit. This reliance on federal incentives marks a shift from the previous era when local and state policies were key components of preservation finance.
While these tax credits primarily benefit property developers, they often drive local economic activity, job creation, and the transformation of vacant buildings into new commercial spaces. Residents interested in how these projects affect local property tax assessments should consult with a municipal tax professional.
The takeaway
The federal historic tax credit remains a crucial tool for regional economic revitalization in the absence of state-level equivalents. Keep an eye on local development filings to see how major building rehabilitations might impact your neighborhood's commercial access and local employment opportunities.
Further reading
For more on labor trends and local economic indicators, see Employment.
Source note: This article includes information reported by 21alivenews.
Live Poll
Should governments provide tax credits to encourage the rehabilitation of local historic buildings?
