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The North Carolina “mills bill,” prompted by the closure of many of the state's textile, tobacco and
furniture plants , provides terrific incentives for restoring and reusing large vacant industrial, agricultural, and utilities
buildings. State tax credits are
available for the rehabilitation of income- and non-income-producing
historic mill properties.
Industrial Properties Rehabilitation Case Studies (PNC)
 The mill rehabilitation tax credit measures provide up to a a 40% state tax credit for the “certified rehabilitation” of income-producing historic structures, depending on the development tier of the county in which the structure is located. This may be combined with the 20% federal investment tax credit. The state mill rehabilitation tax credit is available in lieu of (as opposed to in addition to) the state historic
rehabilitation tax credit.
An eligible site for this program must fulfill several conditions:
It is a “certified historic structure” or a State-certified historic structure that is individually listed in the National
Register of Historic Places or is certified by the State Historic Preservation Officer as contributing to the historic
significance of a National Register Historic District or a locally designated historic district certified by the United
States Department of the Interior.
It was used as a manufacturing facility or for purposes ancillary to manufacturing, as a warehouse for selling
agricultural products, or as a public or private utility.
It has been at least eighty percent (80%) vacant for a period of at least two years immediately preceding the date the
“eligibility certification” is made.
The cost certification documents that the qualified rehabilitation expenditures for a site for which a taxpayer is
allowed a credit under section 47 of the Code or the rehabilitation expenses for a site for which the taxpayer is not
allowed a credit under section 47 of the Code exceed three million dollars ($3,000,000) for the site as a whole.
An owner must obtain the “eligibility certification” from the State Historic Preservation Officer after the rehabilitation
work is completed certifying that the applicable facility comprises an “eligible site” and that the rehabilitation is a
“certified rehabilitation.”
Taxpayers should
consult a professional tax advisor, the North Carolina Department of Revenue, or the Internal Revenue Service for help in
determining the tax and other financial implications of any matter discussed here.
For further information regarding the
procedures for obtaining state mill rehabilitation tax credit certifications, contact:
Tim E. Simmons, Senior Preservation Architect and Tax Credit Coordinator
Restoration Branch, NC State Historic Preservation Office,
4617 Mail Service Center, Raleigh, NC 27699-4617; 919-733-6547 x242;
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Learn more
 Download the Mills Tax Credit Fact Sheet (2007) (16.65 kB)
Industrial Properties Rehabilitation Case Studies (PNC)
N.C. General Statute (GS) 105-129.70–75
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