Income-producing properties are eligible for up to a 20% tax credit for substantial, certified rehabilitation expenditures for certified historic structures. [This program does not apply to owner-occupied residential properties currently.] The program is administered in three parts:

• Part 1, Evaluation of Significance, certifies that a property included in a National Register district contributes to the significance of that district. Individually listed National Register properties are already certified historic structures and do not require Part 1. Unlisted historic properties can use the Part 1 application to request a preliminary determination of significance from the National Park Service (NPS). If the property is found to be significant, the NPS can allow the project to proceed while the National Register nomination is being prepared by the applicant.
• Part 2 of the application is the Description of Rehabilitation. Certification of this portion acknowledges that the plans are consistent with the historic character of the building and do not harm or cover up significant historic features of the interior or exterior.
• Part 3, Request for Certification of Completed Work is a final inspection and documentation to verify that the approved plans were carried out as stated in Part 2.

The Delaware Division of Historical and Cultural Affairs is the first point of contact for property owners. They provide application forms, guidance, and make certification recommendations for Parts 1, 2 and 3 to the National Park Service (NPS). The NPS reviews the applications, makes certification decisions, and transmits decisions to the Internal Revenue Service. Frequently, property owners consult with tax attorneys or tax credit specialists for assistance with the program. Details of the program can be found in the National Park Service pamphlet titled “Preservation Tax Incentives for Historic Buildings.”

More info: NPS: Preservation Tax Incentives

Code references: U.S. Department of the Interior: 36 CFR Part 67; Treasury Regulation Section 1.48-12.

The Delaware Historic Preservation Tax Credit can be applied to rehabilitations of both income-producing and owner-occupied, certified historic properties. Properties that may be considered for certification include those listed on the National Register, and those designated historic by local ordinance AND that meet the NR eligibility criteria. The state program uses criteria similar to the federal program, and coordination when both programs are used is easily accomplished. State credits range from 20% to 40% depending upon eligibility for other tax credit programs, including the low-income housing tax credit. Projects involving owner-occupied residential properties and non-profit properties have a tax credit cap of $30,000. Credits may be sold. The fiscal yearly cap for the sum of all state credits is $8M. The Delaware Historic Preservation Tax Credit program is currently authorized through June 30, 2025.

Details: Delaware HP Tax Credit  |  Secretary of the Interior’s Standards

Code reference: Title 30 Delaware Code, Chapter 18, Subchapter II, §1815(b) (as amended).

Any property that is on the National Register of Historic Places and any property within a City Historic District (overlay zoning) are eligible for this program, abatement of any increased tax assessment resulting from a substantial and qualified rehabilitation or new construction. There is no maximum increased valuation limit. Rehabilitation of an existing structure offers an abatement period of 10 years from the date of the increased assessment; new construction in a historic area carries an abatement period of 5 years. The work must meet City Historic District requirements and the City’s Finance Director must approve a documentation package.

Notify the Department of Land Use & Planning at 302-576-3031 if you intend to apply.

More info: Finance: Division of Revenue (guidance)

Code references: Ordinance No. 00-063 & No. 06-041; Wilmington City Code Chapter 44-70.

The Delaware Preservation Fund (DPF) maintains a program of property easements, low-interest loans and small grants targeting National Register and locally designated historic properties. There is an annual deadline for grant submissions set by the DPF, but applications are accepted year-round.

More info & applications: preservationde.org/preservation-fund

The DDD program, administered for each certified district (274.64 acres in Wilmington) by the Delaware State Housing Authority, supports large and small development projects with rebates of up to 20% of qualified costs. This program can be layered with the Delaware Historic Preservation Tax Credit program, for qualified historic properties. 

Program info: DSHA DDD Program
Wilmington DDD map & guidance: City of Wilmington DDD Plan

Delaware Preservation Fund, Inc. – DPF@PreservationDE.org

Delaware Division of Historical & Cultural Affairs – Suzanne Savery, Director • 302-736-7400

Delaware State Housing Authority – DDD Program • 302-739-4263 • dsha_contactdsha@delaware.gov

City of Wilmington, Dept. of Land Use & Planning
Debra Martin, Preservation Planner • 302-576-3107 • dmartin@wilmingtonde.gov
Patricia Maley, City Historic District Coordinator • 302-576-3113 • pmaley@wilmingtonde.gov

City of Wilmington, Dept. of Finance – Division of Revenue • 302-576-4320