Charlotte Amalie Historic Preservation Tax Credit: Fifteenand9Main Submits Part 2

Written by The Team at Fifteenand9Main

Fifteenand9Main has submitted Part 2 of the federal Historic Tax Credit process — a milestone for preservation and redevelopment in Charlotte Amalie.

Why This Submission Matters

Part 2 marks a pivotal step toward qualifying for a 20% federal tax credit for rehabilitation work on certified historic structures. For Charlotte Amalie, this represents more than paperwork — it validates the district’s heritage and signals investment momentum for future redevelopment.

What Part 2 Means

Part 2 is the second step in a three-part process that enables developers to obtain a 20% federal tax credit for qualified rehabilitation expenses related to buildings that contribute to the district’s historic character. These buildings are classified as “certified historic structures” within the historic district.

Federal Historic Tax Credit: Past Success

Since its inception 47 years ago, the federal Historic Tax Credit (HTC) program has successfully preserved over 50,000 properties nationwide. Throughout this period, the credit has undergone several changes.

Investment & Job Creation Data

Over its lifetime, the HTC has generated more than $235 billion in new investments in urban and rural communities, creating 2.4 million jobs. A study by the Rutgers University Center for Urban Policy Research indicates that the program pays for itself, as the revenue lost from the credit is offset by the additional taxes generated from the jobs created.

Based on our experience, this is the case. To qualify for the credit, we needed to replicate the Danish-style roof on 15 Main, also known as 15 Dronningens Gade. This process required more resources than if we had chosen a different approach. These additional resources resulted in higher labor and material costs. Since labor and materials are taxed, this expenditure can significantly contribute to the tax base.

Revitalizing Charlotte Amalie

The Charlotte Amalie Historic District covers 165.3 acres 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. However, we have been able to locate only one approval for the tax credit over a significant period.

We hope that if we receive approval, we can encourage more developers to restore the historic structures that contribute to the rich history and beauty of the Charlotte Amalie Historic District, as well as the Virgin Islands.

Disclaimer: While improvements to the Historic Tax Credit program such as the HTC-GO Act were proposed, they have not been implemented as of this writing.