Tips for Writing a Successful Proposal for the Federal Historic Tax Credit (HTC) Program

Historic preservation is not just about nostalgia or aesthetics. It’s also about smart reinvestment in communities and buildings that have stood the test of time. If you’re working with a building listed (or eligible for listing) on the National Register of Historic Places, then the federal Historic Tax Credit (HTC) program administered by the National Park Service (NPS) may be one of the most powerful tools in your toolbox.

But here’s the catch: the process of applying for HTC funding—especially through the NPS—requires careful documentation, preservation sensitivity, and an understanding of how to speak the language of both regulators and funders.

So how do you make your tax credit proposal stand out? Here are key tips to guide you through the process.

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1. Know the Standards

The Secretary of the Interior’s Standards for Rehabilitation are the foundation of any HTC project. Every decision, material, and modification will be evaluated against these guidelines.

Before you touch the first doorknob or window frame, study these standards and understand their intent. This will help you anticipate concerns from your State Historic Preservation Office (SHPO) and the NPS—and avoid expensive surprises during the review process.

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2. Tell a Strong Historic Story

Your HTC proposal isn’t just about the numbers—it’s about the narrative. A compelling application shows how your project preserves and honors the building’s historic character and significance.

Clearly describe:

• What makes the building eligible for the National Register
• How its use and architecture have evolved
• What character-defining features will be retained or restored

This not only strengthens your case for funding—it also roots your project in authenticity.

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3. Don’t Skip the Pre-Design Consultation

Before you finalize drawings or begin construction, set up a consultation with your SHPO. They can provide guidance that saves you time and money in the long run.

Early conversations can help:

• Flag problematic alterations
• Clarify how to handle damaged or missing historic materials
• Determine what documentation (photographs, plans, research) will be expected

This step isn’t just smart—it’s strategic.

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4. Emphasize Reversibility and Repair

The NPS prefers rehabilitation approaches that are reversible (meaning changes can be undone later) and that repairhistoric features instead of replacing them. Your proposal should show a clear hierarchy of treatment—repair first, replace only when necessary, and match the original materials and designs as closely as possible.

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5. Show the Math (But Keep It Historic)

HTC proposals involve both a preservation plan and a financial one. You’ll need to:

• Submit a three-part application (NPS Form 10-168)
• Outline the scope of work and budget
• Separate “qualified rehabilitation expenses” (QREs) from other costs

It’s essential to work with an accountant or consultant who understands what qualifies and what doesn’t under IRS and NPS rules. The more precise your QRE documentation, the smoother your approval process.

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6. Use Visuals Wisely

Before-and-after images, historic photos, architectural drawings, and material samples all help reviewers visualize the scope and sensitivity of your project. Organize your visual documentation clearly and label everything.

Don’t forget: the NPS loves context. Wide shots, interior details, and existing conditions all matter. Make it easy for reviewers to see what’s at stake—and how you plan to honor it.

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7. Learn From Past Projects

One of the best ways to strengthen your proposal is to study successful applications. Many SHPO websites or preservation advocacy groups share examples of completed HTC projects. Pay attention to how they framed their work, navigated challenges, and presented their documentation.

These models can inspire your own narrative—and help you avoid common mistakes.

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Tips for State Credits and Add-ons

Many states offer additional tax credit programs that can be combined with the federal HTC. These often have their own application processes and deadlines, but they’re worth pursuing. Some states also provide grants or revolving loan funds for rehabilitation work.

If your project involves affordable housing, energy efficiency upgrades, or community development goals, you may be eligible for layered funding—which can strengthen your financial model and mission alignment.

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The federal Historic Tax Credit program is more than just a funding tool—it’s a way to breathe new life into buildings that carry our cultural, architectural, and community stories. Writing a successful HTC proposal means balancing the art of preservation with the rigor of compliance and the strategy of storytelling.

With the right preparation, documentation, and team, you can protect the past—and pave the way for a more sustainable, rooted future.