Historic Tax Credits: New York Leads Nation for Ninth Year With $2.27B

Use of historic tax credits in New York led the nation for the ninth consecutive year, according to a National Park Service report highlighted by Governor Kathy Hochul on October 30, 2026. The state completed 106 rehabilitation projects representing $2.27 billion in investment, with 460 projects completed, under construction or in planning (Office of the Governor).

The figures come from the National Park Service's 2025 report on the economic impact of the federal historic tax incentives program, prepared by Rutgers University's Center for Urban Policy Research. The governor's office said New York's investment was three to four times that of the next three leading states: Ohio, Illinois and Texas (Office of the Governor).

What Happened

According to the release, the 106 completed New York projects support more than 37,000 jobs, $1.6 billion in income and $4.28 billion in economic output (Office of the Governor). Since federal fiscal year 2021, New York has completed 606 projects with $9.33 billion in investment, which the state describes as the highest total in the nation over that period (Office of the Governor).

Housing is a large share of that activity. The state says 164 affordable housing projects have used the federal and state credits since 2021, creating 5,101 new low to moderate income units and revitalizing 30,066 existing units (Office of the Governor). The release connects that work to the governor's five-year Housing Plan, which targets 100,000 affordable homes statewide, and names public housing authorities using or preparing to use the credits in New York City, Middletown, Newburgh, Kingston, Albany, Troy, Cohoes, Watervliet, Elmira, Perinton and Tonawanda (Office of the Governor).

The National Picture

Nationally, the program remains near record levels. Novogradac reported in March that the National Park Service certified 939 completed projects in federal fiscal year 2025, which ended September 30, 2025, representing more than $8.64 billion in private investment. That was the second highest annual total on record, behind $8.81 billion in fiscal 2023 (Novogradac).

Since the program began in 1977, an estimated $146.5 billion has gone into rehabilitation across 51,055 certified projects. A companion report credited fiscal 2024 projects with about 116,000 jobs and $1.8 billion in federal, state and local taxes (Novogradac).

How Historic Tax Credits Work in New York

Owners of income-producing buildings listed on, or eligible for, the National Register of Historic Places can claim a 20 percent federal credit and a state credit of 20 to 30 percent, with final amounts based on rehabilitation cost (Office of the Governor). Owners must be approved for the federal credit before they can receive the state credit, and the state credit is capped at $5 million per building rehabilitation (Office of the Governor).

The state credit was generally limited to eligible census tracts for commercial uses. The FY 2024-25 Enacted Budget lifted that census tract restriction for projects that create affordable housing and made technical changes meant to draw more investors, so the state credit is now available statewide for affordable housing (Office of the Governor).

Where the Work Is Happening

The release points to landmark buildings in Buffalo, Binghamton, Watertown and Manhattan being returned to use as housing, retail and office space, without naming individual projects (Office of the Governor). WCG has covered historic conversions in Western New York, including the $30 million Iroquois Lofts rehab in Buffalo's Larkin District, which used state and federal historic credits, and the conversion of Buffalo's 1893 Dun Building into apartments.

Implications for Owners, Developers, Contractors and Subs

For owners and developers, the credits can cover a meaningful share of eligible rehabilitation cost, and the statewide eligibility for affordable housing opens projects in places that previously did not qualify for the state credit (Office of the Governor). The $5 million per building cap on the state credit means the largest projects still depend on other financing sources.

For contractors, historic rehab is a distinct line of work. The buildings must be listed on or eligible for the National Register, and owners need federal credit approval before the state credit is available, so approvals and documentation sit on the critical path before and during construction (Office of the Governor). Work happens inside existing structures that are often decades or more than a century old, which places a premium on careful selective demolition, existing conditions surveys and contingency planning for what is found behind walls.

For subcontractors, the volume in New York, 460 projects in some stage of development, points to steady demand for specialty trades such as masonry restoration, historic window repair and replication, plaster and millwork, and mechanical and electrical upgrades routed through existing structures.

What to Watch

• How many of the 460 projects in the pipeline move from planning into construction over the next year.
• Public housing authority projects using the credits, which can bring large, phased renovation contracts.
• Any changes to the federal 20 percent credit, which the state credit depends on.

Bottom Line

Historic tax credits in New York continue to drive more rehabilitation work than in any other state, with $2.27 billion in completed projects and a pipeline of 460 projects. With affordable housing projects now eligible statewide for the state credit, older buildings across upstate cities remain a steady source of renovation work.

Key Questions

How much historic tax credit investment did New York complete?

New York completed 106 historic rehabilitation projects representing $2.27 billion in investment, according to the National Park Service's 2025 report cited by the governor's office (Office of the Governor).

How do historic tax credits in New York work?

Owners of income-producing buildings on or eligible for the National Register of Historic Places can claim a 20 percent federal credit plus a 20 to 30 percent New York State credit, capped at $5 million per building (Office of the Governor).

Can affordable housing projects anywhere in New York use the state credit?

Yes. The FY 2024-25 Enacted Budget lifted the census tract restriction for projects that create affordable housing, making the state historic credit available statewide for that use (Office of the Governor).

How much historic tax credit investment was there nationally in fiscal 2025?

The National Park Service certified 939 completed projects in federal fiscal year 2025 with more than $8.64 billion in private investment, the second highest annual total on record (Novogradac).

Related Coverage

• Iroquois Lofts: A $30 Million Historic Rehab Transforms a 120-Year-Old Buffalo Factory Into 64 Apartments
• Buffalo's 1893 Dun Building Is Becoming 36 Apartments: A $10 Million Adaptive Reuse Project Brings Life Back to the City's First High-Rise
• Lockport's $66 Million Bewley Building Adaptive Reuse Navigates Political Headwinds: PathStone Targets Late 2026 HFA Closing
• Update: Niagara Falls Picks Developer for $25M Niagara University Housing

Image credit: Office of Governor Kathy Hochul. Image from the source article.

Sources

• Office of Governor Kathy Hochul, Governor Hochul Announces New York State Leads Nation in Use of $2.27 Billion in Historic Rehabilitation Tax Credits to Restore and Improve Historic Buildings in 2025, https://www.governor.ny.gov/news/governor-hochul-announces-new-york-state-leads-nation-use-227-billion-historic-rehabilitation
• Novogradac, NPS Reports FY 2025 Had Second-Highest Annual Total for HTC Investment, https://www.novoco.com/news/nps-reports-fy-2025-had-second-highest-annual-total-for-htc-investment