Incentives for Preservation

Since the adoption of the Historic and Cultural Resources Plan in 2006, the Historic Preservation Program (HPP) has made strides towards incentivizing historic preservation to encourage preservation practices. Arlington experiences continuous pressure for large- and small-scale development.  The incentivization of historic preservation is critical to safeguard the cultural landscape and built environment amidst rapid change. First-hand experience with historic preservation most clearly demonstrates the benefits and its value. The following planning tools help to incentivize preservation.

Historic Preservation Fund

The Historic Preservation Program is excited to offer the Historic Preservation Fund (HPF), a competitive grant program that will support community and individual projects related to Arlington’s history, built environment, or cultural heritage. Whether it includes historic window restoration within a Local Historic District (LHD) or the creation of an economic strategic plan for a historic commercial area, the HPF will financially contribute to history-based initiatives that invest in the future of preservation in Arlington County. The HPF will support both capital and non-capital projects that align with the stated goals of the  Historic and Cultural Resources Plan . Some projects may be eligible for both types of grants.

Preservation Easements

Preservation easements are legal agreements attached to the deed of a property that are binding for current and future owners. Property owners enter into these agreements voluntarily for two reasons: tax benefits and to protect a historic property into the future. The donation of an easement to preserve a certified historic structure or historically important land area qualifies as a charitable contribution for federal income and estate tax purposes.

Arlington County holds 12 recorded preservation easements. Some are multi-family properties, like garden apartment complexes, while others are commercial buildings or single-family homes. These easement properties date from 1876 to 1948. A few of these easements, such as Eastman-Fenwick House, Reevesland, and the Travers' Family Graveyard, are also Local Historic Districts (LHDs).

Transfer of Development Rights

Transfer of Development Rights (TDRs) allow property owners to transfer density and other development rights from one parcel or site plan to another when the project preserves historic buildings, affordable housing, open space, or community facilities. Several planning initiatives, such as the  Clarendon Sector Plan ,  Fort Myer Heights North Plan , and the  Columbia Pike Form Based Codes , include a density incentive for historic preservation. The HPP recommends that any historic site donating their TDRs to another development project maintain and preserve historic elements, facades, and/or building envelopes (i.e., the physical separator between the interior and exterior of a building to help facilitate climate control and protect the indoor environment).

Rehabilitation Tax Credits

One of the most popular incentives to eligible historic property owners is access to rehabilitation tax credits. These tax credits encourage and financially assist with the preservation of historic properties. Property owners who renovate historic properties may qualify for state or  federal tax credits  during the year in which a project is completed. Only work on the historic building, not new construction or additions, qualifies for tax credits. Property owners can claim 20 percent of expenses (10 percent in some situations) for federal tax credits and 25 percent of expenses for  state tax credits . Several hundred property owners in historic districts across the County have used this incentive. For example, one historic neighborhood had 22 known tax credit projects between 2003 and 2013 and the estimated total value of tax credits obtained was $794,561.