Using an older building is an economical alternative to building new. Our statistics show that on average barn rehabilitation costs one-third as much as constructing a comparable new building. Some federal, state, and local programs are available, however, to help defray the costs of a barn preservation project. Some states offer property or income tax relief for the rehabilitation of historic buildings, and a few localities have grant or loan programs for preservation.
Some states offer property tax relief for the certified rehabilitation of historic buildings.
These may consist of freezing property taxes at the pre-rehabilitation level or an exemption for a specific time period. A few states offer state income tax credits as well. Listed below are examples of state tax incentives from a selected number of states. Contact your State Historic Preservation Office to find out if your state has any special tax incentives for historic preservation. There is no limit to the amount of reduction taken in the first year, and there is a carry-over period of 10 years.