Federal Tax Credits Support $116M in Indiana Projects
Property owners rely on the 20% federal credit to make historic rehabilitation projects economically viable in Indiana.
Updated on Oct. 30, 2026 in Employment
Live Poll
Should governments provide tax credits to encourage the rehabilitation of local historic buildings?
Federal tax credits supported $116.6 million in historic building rehabilitation projects across Indiana during fiscal year 2025. These investments provided a significant economic engine for property owners and developers, accounting for approximately 2,044 jobs in the state.
Why it matters
With Indiana having eliminated its state-level historic tax credit in 2016, federal incentives remain the primary mechanism for offsetting the high costs of rehabilitating aging structures. These credits make the preservation and conversion of historic sites economically viable for developers who might otherwise bypass these assets.
Federal historic tax credits supported $116.6 million in Indiana rehabilitation spending during fiscal year 2025, which saw 2,044 jobs supported. Nationally, the program drove $9.6 billion in investment and supported 163,000 jobs.
The players
Federal Historic Tax Credit
A federal incentive program that provides a 20% tax credit for qualified rehabilitation expenditures on certified historic structures.
The details
Developers utilize the program to claim a credit equal to 20% of qualified rehabilitation expenditures on historic buildings. To qualify for this credit, projects must undergo a formal historic certification and rehabilitation review process. This federal support allows property owners to bridge the funding gap inherent in revitalizing, retrofitting, or converting historic architecture for modern commercial or mixed-use operations.
Timeline
2016: Indiana eliminated its state historic preservation tax credit.
October 1, 2024 - September 30, 2025: Federal fiscal year 2025 activity.
December 2024: Completion of the Illinois Building hotel conversion in Indianapolis.
January 2026: Completion of the Ben Hur Life Insurance Building conversion in Crawfordsville.
May 2026: Completion of the Arts United Center rehabilitation in Fort Wayne.
Market Landscape
The current reliance on federal credits marks a complete shift in local development strategy following the 2016 elimination of the Indiana state historic preservation tax credit. Developers now operate entirely within the federal framework to secure financial viability for major preservation projects.
Property owners and developers should factor a 20% credit on qualified rehabilitation expenditures into their pro forma for historic projects. Given the lack of state-level credits in Indiana, ensure your project design meets federal certification standards early to avoid losing the primary subsidy for your capital investment.
The takeaway
The federal tax credit serves as the essential financial backbone for historic building reuse in Indiana. Operators considering similar projects must rigorously document all qualified expenditures to ensure they meet the specific federal review requirements for the 20% credit claim.
Further reading
For broader trends on labor and capital deployment in the region, see Employment.
Source note: This article includes information reported by 21alivenews.
Live Poll
Should governments provide tax credits to encourage the rehabilitation of local historic buildings?
