Urban Policy in Disguise: A History of Federal Tax Incentives for Historic Preservation

In 1976, the federal government adopted tax incentives to engage the private sector in thepreservation and rehabilitation of historic buildings. This article examines the development andevolution of federal tax policy related to historic preservation, focusing on four major pieces oflegislation: the Tax Reform Act of 1976, the Revenue Act of 1978, the Economic Recovery Tax Actof 1981, and the Tax Reform Act of 1986. From the outset, the motivations behind federal taxincentives for preservation were as much about urban revitalization, as they were about preservinghistoric resources. Furthermore, the history of federal preservation tax incentives, which oftenbenefited from bipartisan support, sheds light on current debates about amending, enhancing, oreliminating the current historic rehabilitation tax credit.