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
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