New York completed 106 historic-building projects tied to $2.27 billion in rehabilitation investment during federal fiscal year 2025, while hundreds more were underway or being planned.
New York historic tax credits supported more rehabilitation investment than any other state for the ninth straight year, according to an announcement from Gov. Kathy Hochul on October 30. The state cited a National Park Service report showing 460 New York projects that were completed, under construction or in planning during federal fiscal year 2025.
The 106 completed projects represented $2.27 billion in total rehabilitation investment. The report estimated that the work supported more than 37,000 jobs, $1.6 billion in income and $4.28 billion in economic output. New York’s rehabilitation investment was three to four times the amount reported by Ohio, Illinois and Texas, the next three states in the ranking.
The figures describe private and public investment connected to the tax-credit program, not a $2.27 billion state grant. Historic tax credits reduce qualifying income-tax liability after a project meets federal and state rules. Developers often combine them with housing subsidies, bonds and private financing.
How New York historic tax credits work
The federal program offers a 20 percent income-tax credit for the substantial rehabilitation of a certified historic, income-producing building. A qualifying New York project approved for the federal credit may also receive a 20 to 30 percent state credit. The final value is based on eligible rehabilitation costs.
Federal approval is required before an owner can receive the state commercial credit. The building generally must be listed on the National Register of Historic Places, contribute to a registered historic district or be determined eligible for listing. The rehabilitation also must follow federal preservation standards.
New York caps the state commercial credit at $5 million per building. Commercial projects are generally limited to qualifying census tracts, but the state made the credit available statewide when a rehabilitation creates affordable housing. The 2024-25 state budget also made technical changes intended to attract more investors to those housing projects.
Owners should contact the State Historic Preservation Office before starting work. The program uses a three-part review process, and work completed before approval can create eligibility problems. The state also operates separate credits for qualifying owner-occupied historic homes and older barns.
Housing has become a major part of the program
Historic tax credits are no longer used only for museums, hotels or commercial storefronts. The state said that since federal fiscal year 2021, owners have completed 606 New York projects representing $9.33 billion in investment.
Of those projects, 164 involved affordable housing. They created 5,101 new homes for low- and moderate-income residents and rehabilitated 30,066 existing apartments. Public housing authorities in New York City, Middletown, Newburgh, Kingston, Albany, Troy, Cohoes, Watervliet, Elmira, Perinton and Tonawanda have used or are preparing to use the incentive.
State Homes and Community Renewal Commissioner RuthAnne Visnauskas said more than 35,000 affordable homes have been created or preserved with historic tax credits since 2021. That work also supports the state’s broader five-year goal of creating or preserving 100,000 affordable homes.
The credits can make an old school, factory, warehouse or office building financially possible to reuse. They do not automatically make every apartment affordable. Long-term affordability usually depends on a separate regulatory agreement, public subsidy or program requirement attached to the project.
Why this matters in Utica and the Mohawk Valley
Utica and many Mohawk Valley communities have large inventories of older commercial buildings, former factories, schools and apartment houses. Reusing those properties can preserve neighborhood character while adding housing and business space without extending roads and utilities farther into undeveloped land.
The region also knows the cost of maintaining aging housing. Utica Phoenix previously covered the $76 million rehabilitation of an affordable-housing development in Utica. That project illustrates the scale of investment older properties can require, although the governor’s October 30 release did not identify it as part of the historic-tax-credit totals.
Historic designation can open financing options, but it is not a guarantee that a project will proceed. Owners still need a workable construction budget, tenants or buyers, environmental review where required and enough financing to cover costs before credits are claimed.
Residents can learn more about properties and historic districts through the state’s Cultural Resource Information System. Recent Phoenix coverage also explains how the state reviews nominations for the State and National Registers and recognizes notable preservation projects.
What the economic figures do and do not show
The National Park Service report was prepared by the Rutgers University Center for Urban Policy Research. Its job, income and output figures include direct construction activity and secondary economic effects. Economic output is broader than wages or tax revenue, so it should not be read as money paid directly to workers or local governments.
The governor’s release did not provide a project-by-project list for all 460 New York properties. It also did not state the total federal and state tax cost associated with the $2.27 billion in completed rehabilitation. Those figures would be useful for comparing public cost, private investment, long-term affordability and local tax-base growth.
Preservation projects can also present tradeoffs. Specialized materials and required design standards may increase costs. Developers may need bridge financing because tax benefits are generally realized after qualified work is completed. In housing projects, residents and local officials should ask how many homes will remain affordable, for how long and at what income levels.
Practical steps for owners and community groups
- Check whether the building is listed, contributes to a historic district or may be eligible for listing.
- Contact the State Historic Preservation Office before demolition, window replacement or other major construction begins.
- Ask a qualified tax professional and preservation consultant which costs may count toward the federal and state credits.
- For a housing proposal, identify the affordability period, income limits and other public financing before describing the project as affordable.
- Keep photographs, plans, invoices and records of the building’s condition and approved work.
The governor’s announcement, the National Park Service economic-impact report and the state tax-credit program page provide additional details.
Community question: Which vacant or underused historic building in Utica or the Mohawk Valley would you most like to see restored, and what public use or housing need should it serve? Share this article with a local preservation group, building owner or neighborhood organization.
