Twenty percent of the rehab costs can be taken as a tax credit applied to the building owner's state income taxes. Contrary to popular belief, there are no restrictions that come with National Register listing. Property owners retain all of their rights to alter, demolish, or preserve their buildings as they see fit. Developers are not prohibited by National Register designation either. The only restrictions and controls in a historic district are those imposed by the city, but these restrictions apply only when the buildings are on a local register.
Most smaller cities have few if any restrictions or regulations regarding their historic districts.
They often have printed design guidelines to help building owners understand in advance what types of exterior work is acceptable. These cities may also have the power to delay or even prevent the demolition of historic properties. Contact your city planning department for details regarding the local register. In summary, historic district designation is usually a positive step for an area. It tends to help stabilize a neighborhood, stimulate increased owner occupancy by making it a more distinct and desirable place to live, and generate increased property values as buildings are rehabilitated.