Preservation Resources

Incentives and Grants

Historic Preservation Incentives For Private Owners

The Property Tax Assessment Freeze for Historic Residences (owner-occupied: single family homes, condominiums, cooperative unit, or multi-family building up to 6 units) freezes property taxes over a 12-year period after rehabilitation of the property. There is a minimum investment of 25% the property's market value, as determined by the County Assessor. The building must be a certified historic structure. Call the Illinois Historic Preservation Agency (IHPA) at 217-782-4836.

A 20% Federal Rehabilitation Tax Credit is available for rehabilitating an income-producing building. This dollar-for-dollar Federal income tax credit equal to 20% of the construction costs may be used by the building owner or sold to a tax credit investor. The minimum investment is 100% of the building's "adjusted basis"; that is, the purchase price minus the land cost and depreciation, plus prior improvements. The building must be a certified historic structure. Call the IHPA at 217-782-4836.

A 10% Federal Rehabilitation Tax Credit is available for rehabilitating an income-producing, non-residential building built before 1936. (This is NOT for properties listed on the National Register of Historic places or in local landmark districts). This dollar-for-dollar Federal income tax credit equal to 10% of the construction costs. The minimum investment is 100% of the building's "adjusted basis"; that is, the purchase price minus the land cost and depreciation, plus prior improvements. Use IRS form# 3468. Call the IHPA at 217-782-4836.

Rehabilitation of a Barn or farm building? Take a look at section 179 of the “Farmers Tax Guide” (publication 225) for tax deduction information. IRS form #4562 “Depreciation Deduction.” One can deduct the cost of rehabilitating a single-purpose agricultural structure, up to $25,000 in 2003. www.irs.gov (also see 10% Federal Rehabilitation Tax Credit).

A Preservation Easement Donation is a one time charitable, federal income tax deduction equal to the appraised value of the preservation easement. A Preservation Easement is a legal agreement which assigns the right to review and approve alterations to a qualified non-profit organization for the purpose of preserving the property in perpetuity. Property must be a certified historic structure on the National Register of Historic Places, individually listed, contributing to a district, or contributing to a local landmark district. Landmarks Illinois takes Easement donations. Call Andrew Fisher, Landmarks Illinois, 312-922-1742.

For those with farms or concerned with conserving open space there are Conservation Easements. Similar to the preservation easement, it leaves land in private ownership and can result in an income tax reduction. It may also reduce property and estate taxes. For more information contact: Land Trust Alliance, 202-638-4725, website: www.lta.org or the Conservation Foundation, 630-428-4500, for DuPage, Kane, Kendall and Will Counties.

Cook County Class-L Property Tax Incentive
Reduces the property tax rate for 10 years for rehabilitating a landmark building in a commercial or industrial use. Minimum investment – 50% of the building’s assessed value (land subtracted from the total assessed value), as determined by the County Assessor. Call: Office of Special Assessment Programs, Cook County Assessor’s Office at 312-603-5331 or the Landmarks Division of the Chicago Department of Planning and Development (DPD), 312-744-3200.

Permit Fee Waiver
The City of Chicago waives all building permit fees (requires prior application) for individual Chicago landmark buildings or those contributing to a Chicago landmark district. Call the Landmarks Division of DPD at 312-744-3200.

* Always be sure to check with your local preservation commission about any local incentives that may be available in your municipality.

Historic Preservation Incentives for Not-for-Profit
or Municipality Owners

Illinois Heritage Grant Program

National Park service program administered through the Illinois Historic Preservation Agency. This program funds "bricks and mortar" preservation projects for properties listed on the National Register or designated locally. Projects are funded on a matching basis, with the local share being at least 40% of the project cost. (Funding for program was eliminated in 2004. Contact Landmarks Illinois regarding legislative efforts to re-fund the program).

Preservation Heritage Fund Grants
Landmarks Illinois
The Preservation Heritage Fund provides monetary assistance to preserve or protect significant structures or sites in the state of Illinois. Eligible beneficiaries of Preservation Heritage Fund grants and/or loans are significant structures or sites in Illinois that are under threat of demolition, imminent deterioration, or are of such architectural importance that their preservation will benefit the public and Illinois community. For more information on project eligibility and an application contact: Suzanne Germann, 312-922-1742 or germanns@lpci.org.

The National Trust for Historic Preservation grant and loan programs:

Preservation Services Fund — Matching grants ranging from $500-$5000 to initiate preservation projects;

Johanna Favrot Fund — grants for projects that contribute to the recapturing of an authentic sense of place;

Cynthia Woods Mitchell Fund — grants for restoration and interpretation of Historic interiors; and

National Trust Loan Funds — below market rate loans to help preserve historic properties. Contact the Midwest Region of the National Trust: 312-939-5547.

Illinois Clean Energy Community Foundation:
Grants to upgrade energy efficiency and lighting of public and non-profit facilities. Historic buildings prioritized. Contact www.IllinoisCleanEnergy.org / 312- 372-5191.

For Federal government grants for historic preservation initiatives, go to www.grants.gov or support@grants.gov or www.achp.gov/funding.html or contact
1-800-518-Grants.

Save America’s Treasures
Bricks and mortar and planning grants. Contact 202-588-6202 or www.saveamericastreasures.org.

Preserve America
Grants to assist communities in preserving their cultural and natural resources. Contact www.preserveamerica.gov.

We the People initiative
National Endowment for the Humanities
Grants for public programs that use one or more historic sites (single building, neighborhood, town) that address themes relevant to American history. Contact Division of Public Programs 202-606-8267 or by email: publicpgms@neh.gov.

There are also tourism-related incentives (municipality/non-profit):

Experience Illinois Program
Illinois State Treasurers Office
Short term, low-cost loan program for developing or further enhancing tourism oriented projects including:

1)Historic Preservation 2) Tourism Development 3) Community enhancement projects
Minimum loan amounts range from $10,000-$25,000 to a maximum of $2,000,000-$5,000,000 depending on the project (numbers may be old) Call: Cory Jobe 217-557-2673.

Tourism Attraction Grant Program
Illinois Department of Commerce and Community Affairs
Funds heritage tourism related historic preservation projects. Property must be open to the public on a regular basis (museum) at least 5 days a week. You must, however, show that the project will result in visitors staying overnight in hotels. Projects funded on a matching basis. Contact: 217-524-2998.

For Museums

Public Museums Grants Program
Illinois Department of Commerce and Community Affairs

Provides operating funds and capital project funding to museums that are operated by or located on land owned by a unit of government. Museum must be in existence for 2 years and have a professional staff. Contact: 217-782-7388.

Federal Grants

The National Trust for Historic Preservation offers a new website listing current federal funding opportunities. Go to http://nthpgrants.blogspot.com/

Landmarks Illinois
Suite 1315
53 W. Jackson Blvd.
Chicago, IL 60604 
tel. 312-922-1742 
fax 312-922-8112

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tax exempt 501(c)(3) organization founded in 1971 and is the state's leading voice for historic preservation.