Historic Building Rehabilitation Spurred $5 Billion of Economic Activity 

July 16, 2025

Enacted Budget Includes Significant Enhancements to Further Stimulate the Creation of Affordable Housing Units in Historic Properties

Governor Kathy Hochul today announced that New York State led the nation in the use of State and Federal Historic Rehabilitation Tax Credits to improve landmark buildings across the state in 2024. Recent data from the National Park Service reports that 154 individual building rehabilitation projects in the state were completed, are currently under construction, or in the planning phase in 2024, totaling $2.8 billion of economic activity. The number of New York State rehabilitation projects was more than double and the total economic activity was more than three times that of the next leading states (Ohio and Texas respectively). Vg.

“The State’s landmark buildings continue to find new life through the support of Federal and State incentives for historic properties,” Governor Hochul said. “New York State’s rehabilitation tax credit programs are attracting strong private investment to these properties, spurring much-needed quality, affordable housing and bringing new life to our communities.”

A significant growth in the Federal and State rehabilitation programs has been the adaptive reuse of historic properties that create new affordable housing units, or in many cases, rehabilitate existing units. Since 2022, there have been 106 affordable housing projects that have used the historic tax credit programs, creating 1,757 new units and revitalizing 2,412 existing units. All told, New York since federal fiscal year 2019 has made strong use of the program, with 491 property owners completing projects and a total of $5.06 billion investment in the state — ahead of other states by wide margins.

New York State Office of Parks, Recreation and Historic Preservation Commissioner Randy Simons said, “The historic rehabilitation tax credit has a strong record of helping to revitalize notable buildings, foster job growth, create more housing, and renew a sense of pride among New Yorkers for our state’s heritage. We are thrilled to see the growth in use of the historic tax credit programs to address New York’s housing crisis and we look forward to working with program partners to continue making the state more livable and affordable for all New Yorkers.”

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “New York is a leader in preserving landmark buildings and architectural gems, and repurposing them in innovative ways that address our housing shortage and strengthen communities. The historic rehabilitation tax credit program is investing in more than 4,000 affordable homes, creating billions in economic activity, and revitalizing neighborhoods. The program is a vital tool in our toolbox as we address the affordable housing crisis. Thank you to Governor Hochul for your vision and commitment to creating the housing New York needs.”

New York State Tax Department Executive Deputy Commissioner Michael Shollar said, “We’re pleased to be part of the team administering historic rehabilitation tax credits. The tax credits associated with this program offer important incentives for the preservation of historic buildings and help revitalize communities.”

Preservation League of New York State President Jay DiLorenzo said, “Historic rehabilitation tax credits have proven transformational for communities and Main Streets throughout New York State. Reusing our existing buildings creates local construction jobs, provides space for small businesses, creates much-needed housing, and keeps demolition debris out of our landfills. Enhancements to the New York State program spearheaded by Governor Hochul means that even more communities will benefit from this powerful economic development tool.”

In further support of the State’s affordable housing creation and preservation goals, the Governor’s Enacted Budget expands the use of historic tax credits for affordable housing efforts. Use of the New York State rehabilitation tax credit was previously restricted to properties in census tracts at or below the state family median income; however, the restriction has been lifted if the rehabilitation is for the purpose of creating affordable housing. Additionally, technical amendments to the law have been made to increase the opportunity for investors to participate in the program.

Owners of income-producing real properties listed on or eligible for the National Register of Historic Places may be eligible for a 20 percent federal income tax credit and a 20 to 30 percent state credit for the substantial rehabilitation of historic properties. The final credit amount is based on the cost of the rehabilitation. Property owners must be approved for the federal credit in order to be eligible for the state’s credit. The state’s credit is capped at $5 million per building rehabilitation, which is generally restricted to eligible census tracts for commercial uses but now is available statewide for the purposes of creating affordable housing.

For more information on the tax credit program visit https://parks.ny.gov/shpo/tax-credit-programs/