Federal Historic Tax Credits: A Case Study at Fifteenand9Main, St. Thomas
Written by the Team at Fifteenand9Main
Update: On May 12, 2025, Fifteenand9Main was notified that their Part 2 submission was approved by the US Department of Interior. Part 2 describes the condition of the building and the planned rehabilitation work — a major milestone for Charlotte Amalie redevelopment.
Historic Tax Credit Part 2 Approved — Fifteenand9Main (Charlotte Amalie) →
Fifteenand9Main is six months into the process of applying for the federal historic preservation tax incentive program. This program provides a 20% federal tax credit to property owners who substantially rehabilitate a historic building used for income purposes while maintaining its historic character.
About the Historical Tax Credit Program
Since its inception in 1976, the federal historic preservation tax incentive program has been a resounding success, spurring an impressive $132 billion private-sector investment across 49,263 projects. The latest Annual Report (PDF) attests to this, showcasing the transformation of iconic and beautiful structures through rehabilitation.
Historic Tax Credit Annual Reports — National Park Service
To qualify for the 20% tax credit, a building must be a certified historic structure, individually listed on the National Register of Historic Places, or recognized as a contributing building within a certified historic district. The National Park Service determines this by approving Part 1 of the application.
The USVI Use of the Program
Regrettably, the US Virgin Islands has yet to make its mark on this list. The annual reports since 2017 have served as a stark reminder of our absence. From 2020 to 2023, there were no applications or grants. In 2019, there was a single application, and in 2018, there was one approval for Qualified Restoration Expenditures (QRE) totaling $150,000. This clearly indicates the untapped potential for the USVI to benefit from this program.
What federal standards unlock: CMCArts — a 30-year St. Croix institution — just signed at 15 Dronningens Gade. Additional retail bays are available now.
The Charlotte Amalie Historic District spans 165.3 acres (0.669 km²) and was listed on the National Register of Historic Places in 1976. At that time, it included 574 contributing buildings, three contributing structures, and one contributing object. This compact district concentrates centuries of architectural history within walkable blocks of Main Street St. Thomas.
Charlotte Amalie Historic Building List
Understanding the Tax Credit's Investor Appeal
To qualify for the federal historic preservation tax incentive program, you do not need to file a U.S. Virgin Islands (USVI) tax return or be domiciled in the Virgin Islands, unlike the USVI Economic Development Commission's tax program. An investor from New York or Colorado can rehabilitate a historic building located in the Charlotte Amalie historic district and, if the project qualifies, can receive a 20% tax credit on their US tax return.
Applying for the Tax Credit
The application process is not easy, as evidenced by the deck we recently completed for Part 2 of the application process. This 'deck' refers to a comprehensive document we prepared, detailing the condition of the building and the rehabilitation work. Part 1 presents information regarding the significance and appearance of the building. We passed this part in September 2024.
The program is a joint effort between the federal government and the states and territories. Sean Krigger is the territory liaison for the USVI, and if the program has not been utilized, it is not due to his lack of effort. He has been invaluable in guiding us through the process.