June 01, 2025
As realtors, we’re always looking for creative ways to unlock value in properties, especially in a market as competitive and historic as New York.
One tool that’s making a major difference right now is the Historic Tax Credit (HTC) program — and it's reshaping commercial real estate across the city and state.
At its core, the HTC allows developers to earn equity by restoring and repurposing buildings that are at least 50 years old and carry historic significance.
This can include everything from prewar structures to now even postmodern buildings from the 1970s.
If a building is listed or eligible for the National Register of Historic Places — or is part of a historic district — and it’s income-producing (not residential), it may qualify.
Here’s where it gets even better: the program isn’t capped or competitive at the federal level. If the project meets the criteria, it qualifies.
Restoration costs, known as Qualified Rehabilitation Expenditures (QREs), typically make up about 80% of total development costs (not counting acquisition).
Developers can get 20% of these QREs back as a tax credit — and they can either use them internally or bring in equity partners like JPMorgan Chase to help finance the deal.
Pairing federal HTC with New York State’s version (which offers up to $5 million per building) makes projects even more feasible.
Especially outside the city, HTC has been a game-changer for turning old schools, warehouses, and mills into vibrant multifamily housing or light industrial spaces.
In NYC, it’s driving affordable housing renovations and mixed-use developments.
HTC also stacks nicely with other credits, like the New Markets Tax Credit (for community-centered nonresidential projects) or the Low-Income Housing Tax Credit (for affordable housing).
Developers are even combining HTC with Solar Investment Tax Credits to boost sustainability — proving that preserving history can also be part of a greener future.
We’ve seen some big successes already: the Brooklyn Navy Yard’s Building 127 transformed from heavy manufacturing into light manufacturing and office spaces.
Upstate, old shoe factories and mills are now offering mixed-use and residential options, bringing new life to entire neighborhoods.
In short, if you're working with developers, investors, or anyone eyeing New York’s historic properties, HTC equity could be the secret weapon to making the numbers work.
If you or your clients are considering a historic property investment and want to know how to tap into HTC opportunities, JPMorgan Chase’s Historic Tax Credit team is a great resource to connect with.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
