In 1998, North Carolina introduced a tax incentive program that for the first time allowed owners of historic private residences to earn a credit worth 30% of their rehabilitation expenditures against their state income taxes. The non-profit organization Preservation North Carolina lobbied extensively for this policy, and their efforts have paid off. Since then, over 450 projects worth $60.2 million have been completed.1 In fact, the number of historic rehabilitation tax credit applications for non-income producing properties has been steadily rising each year. This might be due to a number of factors. The popularity of television shows such as This Old House and Trading Spaces and the proliferation of Home Depot and Lowes stores have created a "do it yourself" trend that has caught on across the nation. As more people take on rehabilitation projects, their friends and neighbors take note and are encouraged to start their own projects. Each year there are new historic districts added to the National Register, making hundreds more homes eligible for the tax credits. Still, the amount of rehabilitation activity in North Carolina is not what it could be. Many people have never heard of the historic rehabilitation tax credit program, and of those who have, many are confused or discouraged by the application process. They may hear that it takes time to get their project approved, and they don't want to wait for approval before beginning work. This study will examine the barriers to getting more residents to apply for the North Carolina Historic Rehabilitation Tax Credits. I will then look at the ways to address those barriers, in order to encourage more people to participate in the tax credit program and to stimulate historic preservation activity.Master of City and Regional Plannin
