Texas · Historic · TX-HIST-001
Certified Historic Structure Rehabilitation Credit
Publication revised September 24, 2026. Sourcebook page 256.
Credit amount / calculation
25% of eligible rehabilitation costs under the state credit; transfer rules apply.
Business fit and eligible activity
A forest-products business rehabilitating a certified historic mill may monetize a Texas franchise-tax credit. Eligible property rehabilitation or redevelopment; not the cost of wood supplied to someone else's project.
Eligibility and practical use
The strongest fit is a fixed facility: an older mill, warehouse, factory, or contaminated industrial parcel that will be put back into productive use. Advance certification is especially important here.
Illustrative business benefit
A wood manufacturer buys an older industrial mill building and undertakes $2 million of rehabilitation that is accepted as qualified expenditure. At a 25% credit rate, the nominal credit would be $500,000, subject to certification, allocation, basis, and recapture rules. Demolition or rehabilitation started before the required approval could change the result completely. Page
Timing / first action
Seek approval before signing a purchase order, contract, lease or other binding commitment. Confirm the exact point at which a purchase order, contract, lease, or other binding commitment would make the project ineligible.
Official sources
- thc.texas.gov — Texas Historical Commission (thc.texas.gov)
Related programs
Research and Development Franchise Tax Credit - Subchapter T
8.722% of current Texas qualified expenses above 50% of the
New rules effective January 1, 2026 provide a current franchise-tax credit for Texas qualified research.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Clean Fuel Production Credit (Internal Revenue Code §45Z)
Per-gallon or gallon-equivalent credit based on the
Potentially relevant only if a forest-products business actually produces qualifying transportation fuel.