The State Historic Preservation Grant Division offers grant programs on a competitive basis for buildings that meet the criteria for listing on the National Register of Historic Places. For the most part, federal agencies depend on local authorities to administer the funds that are available. Indeed, most of the public funds for historic preservation come from the state and local level. This grant offers a 25 percent tax credit for rehabilitation of historic income-producing property. The Historic Preservation Fund program provides funds for state historic preservation programs, and the National Trust for Historic Preservation offers grants for historic survey and inventory projects.
Easements are a popular way to achieve private funding for preservation in historic property.
An easement is a legally recognized agreement between an owner and an organization eligible to hold and enforce such an agreement. The property remains in private hands while the organization makes sure the building is protected no matter who owns it. In addition to assuring protection of the property, a homeowner may deduct the value of the donated easement from federal income taxes as a charitable contribution. For federal tax purposes, an easement reduces a property's value by limiting developement, thereby reducing overall estate taxes and allowing large properties to remain intact. The terms of the easement may vary greatly depending on the specific requirements of the property and the objectives of the property owner and the recipient of the easement.