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The Historic Housing Tax Credit

About three years ago the Mayor and City Council of Washington, DC approved a program providing for a tax credit against DC income taxes to homeowners in ten designated historic districts who substantially rehabilitate their homes. This tax credit is part of the "Housing Act of 2002" and is to be available to homeowners in LeDroit Park, Mount Vernon Square, Blagden Alley/Naylor Court, Shaw, Anacostia, Greater U Street, Greater Fourteenth Street, Mount Pleasant, Capitol Hill and Takoma Park historic districts. The law authorizes funding of $1,250,000 for each fiscal year from 2003 through 2006. However, no funding was included in budgets passed by the City Council for FY 2003 and FY 2004.  The budgets for FY 2005 and FY 2006 included funding in the amount of $1,000,000 for each of those years. DCPL actively supported that funding and is hopeful that implementation of the program will begin soon.  Discussions are underway with the Historic Preservation Office and the Office of Tax and Revenue.  In addition, the Mayor submitted legislation to the Council that amends the tax credit legislation to include, among other things, a new component that would provide loans for rehabilitation work to homeowners meeting certain criteria.   

This housing rehabilitation tax credit, and the loan component or a grant component, which has also been discussed, have the potential to benefit, not only individual homeowners, but also to improve the City's housing stock and to economically benefit our city, particularly the neighborhoods in which the historic districts are located. Each dollar of credit is leveraged by a far greater amount invested by or on behalf of the homeowners. In addition, the value of each property is increased and that increase is reflected in our City's tax base. Along with the rehabilitation of properties comes jobs and safer, more vital neighborhoods. It is, after all, our neighborhoods, individually and collectively, which create the character of our city beyond the monuments.

For more information on the tax credit, please see our fact sheet.