Memphis Historic Restoration Tax Incentives Guide

Land Use and Zoning Tennessee 4 Minutes Read · published February 08, 2026 Flag of Tennessee

Memphis, Tennessee property owners, developers and preservation professionals seeking tax incentives for historic restoration must navigate federal, state and local requirements. This guide explains who qualifies, how federal and Tennessee incentives interact with local landmark protections and the city permitting process, and where to file applications and complaints. It summarizes required documentation, common compliance pitfalls, enforcement pathways and practical steps to maximize tax benefits while meeting Memphis historic-designation rules.

Overview of Incentives

There are three layers of incentives commonly relevant to Memphis projects: (1) the federal historic rehabilitation tax credit program administered through the National Park Service and the IRS, (2) any available Tennessee state rehabilitation tax incentives and (3) local permits, abatements or programs administered by the City of Memphis Historic Preservation office and Planning Division. Project eligibility depends on historic designation, the Secretary of the Interior’s Standards for Rehabilitation, and approved certification steps.[2][3]

Eligible Projects and Designation

  • Contributing buildings in a National Register district or individually listed properties are typically eligible for federal certification.
  • Rehabilitation work must follow the Secretary of the Interior’s Standards for Rehabilitation to qualify for tax credits.
  • Projects that change historic character without approval risk denial of certification and loss of credits.
Confirm designation and boundaries before budgeting a rehabilitation project.

Federal and State Credit Process

The federal program requires a three-part Historic Preservation Certification Application (Part 1, Part 2, Part 3) reviewed by the State Historic Preservation Office and the National Park Service; successful certification supports a federal tax credit claim on the appropriate IRS return.[2]

  • Part 1: Evaluate historic significance and eligibility.
  • Part 2: Describe proposed work and demonstrate conformance with Standards.
  • Part 3: Document completed work for final certification and tax claim.

Local Permits, Approvals and Incentives

In Memphis, the Division of Planning and Development and the Memphis Landmarks Commission review work in locally designated historic districts and may require a Certificate of Appropriateness or other local approvals before work begins; contact the city office for application procedures and timelines.[1]

  • Certificate of Appropriateness or landmark review (local approval requirement).
  • Local review timelines and public notice requirements.
  • City planning staff contact for pre-application guidance and plan review.

Penalties & Enforcement

Enforcement for unauthorized alterations, demolition or failure to follow conditions of approval is handled by the City of Memphis Planning and Development and related enforcement units; penalties and remedies depend on applicable municipal code provisions and administrative rules.[1]

  • Fines: specific fine amounts for historic-preservation violations are not specified on the cited city page.
  • Escalation: information about first, repeat or continuing offence ranges is not specified on the cited page.
  • Non-monetary sanctions: orders to halt work, restoration mandates, or court injunctions may be available under local code; the cited city material describes enforcement authority but does not list exact remedies or schedules.
  • Enforcer: City of Memphis Division of Planning and Development and designated code enforcement officers; use the city contact page to report violations.[1]
  • Appeal/review: the city provides administrative review and appeal routes; specific filing deadlines and time limits are not specified on the cited city page.
  • Defences/discretion: compliance with an approved Certificate of Appropriateness, issued permits, or demonstrated reasonable mitigation are typical defences; exact standards are not detailed on the cited page.
If you receive a violation notice, act quickly to preserve credit eligibility and appeal rights.

Applications & Forms

The federal Historic Preservation Certification Application (Parts 1–3) is published by the National Park Service and is required for federal tax credits; the Tennessee State Historic Preservation Office provides state-level guidance and any state forms. For local work, the City of Memphis provides permit and landmark review applications via the Division of Planning and Development. Fees and specific submission instructions are listed on each agency’s official pages; where a fee or form number is not visible on the cited page, it is not specified on the cited page.[2][3][1]

Begin federal Part 1 review before construction to reduce risk of ineligible work.

How-To

  1. Confirm historic designation and eligibility with the State Historic Preservation Office and the City of Memphis.
  2. Consult the City of Memphis Planning staff for local permitting and Certificate of Appropriateness requirements.
  3. Complete NPS Historic Preservation Certification Application Part 1 and obtain concurrence before major work begins.[2]
  4. Carry out rehabilitation in accordance with the Secretary of the Interior’s Standards and document costs and plans.
  5. Submit Part 2 for proposed work review, complete rehabilitation, then submit Part 3 for final certification and tax claim.

FAQ

Can I use federal and Tennessee state credits together?
Possibly; combination rules depend on program compatibility and state program rules — consult the Tennessee State Historic Preservation Office for specifics.[3]
Do I need a local permit before starting work?
Yes — work in locally designated districts typically requires a Certificate of Appropriateness or permit from the City of Memphis; confirm requirements with Planning staff.[1]
What happens if work is done without certification?
Unauthorised work can jeopardize tax credits and lead to enforcement action; notify the city and pursue remedy steps as soon as possible.

Key Takeaways

  • Start federal Part 1 review early to protect tax credit eligibility.
  • Coordinate with both Tennessee SHPO and City of Memphis planning staff for permits and approvals.
  • Document all costs and follow the Secretary of the Interior’s Standards for successful certification.

Help and Support / Resources

  1. [1] City of Memphis Division of Planning and Development - Historic Preservation
  2. [2] National Park Service - Federal Historic Preservation Tax Incentives
  3. [3] Tennessee Historical Commission - Historic Preservation

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