Federal Tax Credits Boost Indiana Historic Redevelopment
Federal historic preservation incentives supported over $116 million in Indiana building projects during fiscal year 2025.
Updated on Oct. 30, 2026 in Employment
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During the 2025 fiscal year, federal tax credits facilitated $116.6 million in rehabilitation investments for historic properties across Indiana. These projects supported 2,044 jobs throughout the state.
Why it matters
The federal credit provides a 20% offset for qualified rehabilitation expenditures, making the preservation and reuse of aging structures economically viable. This mechanism helps revitalize local economies while maintaining the architectural character of historic buildings.
The federal program provided a tax credit equal to 20% of qualifying rehabilitation costs to developers nationwide. Indiana projects accounted for a portion of the 163,000 jobs supported by the program across the country.
The details
Developers utilize the federal program to offset renovation costs for historic sites, such as the Illinois Building in Indianapolis and the Arts United Center in Fort Wayne. Indiana currently relies on these federal incentives after eliminating its own state-level historic preservation tax credit in 2016.
Timeline
Indiana eliminated its state historic preservation tax credit in 2016.
The federal historic tax credit program operated through fiscal year 2025, ending September 30, 2025.
The Illinois Building hotel conversion in Indianapolis was completed in December 2024.
The Ben Hur Life Insurance Building conversion in Crawfordsville was completed in January 2026.
Rehabilitation work on the Arts United Center in Fort Wayne was completed in May 2026.
Macro View
The use of the federal Historic Tax Credit follows the pattern of historical redevelopment seen in other post-industrial states. This approach serves as a modern alternative to the state-level tax credits that Indiana abandoned nearly a decade ago.
These redevelopment projects influence local job markets by creating construction and hospitality roles within the community. Residents may notice more active use of previously vacant or aging downtown properties as these tax-advantaged projects reach completion.
The takeaway
Historic preservation incentives bridge the gap between building maintenance costs and economic development goals. These projects demonstrate how federal financial tools can drive local job growth and repurpose legacy architecture for modern use.
Further reading
Learn more about labor trends in Indiana Employment.
Live Poll
Should governments provide tax credits to encourage the rehabilitation of local historic buildings?
