Two credits, split by how the property is used
North Carolina runs two separate historic rehabilitation tax credits, and which one applies depends entirely on how the property is used:
- Owner-occupied residence → a 15% North Carolina state credit. No federal credit.
- Income-producing (rental, bed & breakfast, commercial) → the federal 20% credit plus a tiered NC state credit, with possible bonuses depending on the property's location.
Both programs are administered by the North Carolina State Historic Preservation Office (SHPO), with the National Park Service handling the federal side.
Washington County's historic asset: the Plymouth Historic District
Washington County's marquee National Register-listed historic asset is the Plymouth Historic District, added to the National Register of Historic Places on January 16, 1991 (NRHP reference #90002140). It's a 122-acre district covering Plymouth's central business district and surrounding residential sections, encompassing 258 contributing buildings, 5 contributing sites, and 1 contributing structure — most developed between roughly 1880 and 1930, in Colonial Revival, Bungalow/American Craftsman, and Late Victorian styles. The district is roughly bounded by Monroe Street, the Roanoke River, Latham Lane, Third Street, Washington Street, and the Norfolk Southern railroad tracks. The separately-listed Latham House, Perry-Spruill House, and Washington County Courthouse all sit within it. Homes and commercial buildings connected to the district are candidates for either credit, but contributing status is parcel-specific and should always be confirmed with SHPO before relying on the credit.
Plymouth's history explains a lot about that 1880–1930 date range. The town was a significant North Carolina river port before the Civil War, but it was burned during fighting there — once early in the war and again during the Battle of Plymouth in April 1864, after which contemporary accounts described the town as little more than a scattered remnant of buildings. The rebuilding that followed over the next several decades is a meaningful part of why the district's contributing building stock skews postwar rather than antebellum.
The Tier 1 bonus for income-producing projects
Washington County is a North Carolina state-designated Tier 1 county — the most economically distressed development tier under the NC Department of Commerce's annual county tier rankings. Because of that designation, income-producing rehabilitation in Tier 1 counties like Washington is generally eligible for a bonus on top of the standard NC credit tiers. That means income-producing projects in Washington County can potentially reach a higher NC state credit percentage than the base rate available in less-distressed counties.
Confirm the exact combined percentage
This page does not state a confirmed combined final percentage for the Tier 1 income-producing bonus. Before relying on a specific number for project financials, confirm the exact combined percentage with SHPO or the NC Department of Revenue.
Any Tier-based bonus applies only to income-producing rehabilitation. The owner-occupied 15% state credit applies in Washington County the same way it does statewide — there is no special Washington County bonus for an owner-occupied project.
| Element | Owner-Occupied | Income-Producing |
|---|---|---|
| NC state credit | 15% flat | 15% to $10M, then 10% from $10M–$20M |
| Federal credit | None | 20% (over 5 years) |
| Washington County Tier 1 bonus | Not applicable | Bonus generally applies — confirm exact combined percentage with SHPO/NCDOR |
| Minimum rehab spend | More than $10,000 in 24 months | Greater of adjusted basis or $5,000 in 24 months |
| Reviewing agency | NC SHPO | NC SHPO + National Park Service |
| Standards reviewed against | Secretary of the Interior's Standards | Secretary of the Interior's Standards |
National Register status is the threshold requirement
For either credit, the property must be listed in the National Register of Historic Places — individually, or as a contributing building in a National Register district. The Plymouth Historic District is National Register-listed, which makes properties within it candidates for the credit. Contributing status is still parcel-specific — confirm a given address with SHPO before relying on either credit.
Considering a purchase and renovation in the Plymouth Historic District specifically? FHA's 203(k) renovation loan can finance the purchase and the repair work in a single mortgage — see Washington County FHA Loan Limits — and Waterfront for a Working Budget covers how rehabilitation financing fits alongside the county's other financing realities.
Frequently asked questions
Does Washington County's Tier 1 status affect my owner-occupied credit?
No — Tier-based bonuses only apply to income-producing rehabilitation projects. If you're rehabilitating a home you live in, you qualify for North Carolina's standard 15% owner-occupied credit, the same as anywhere else in the state.
Is the Plymouth Historic District eligible for these credits?
The Plymouth Historic District is listed on the National Register of Historic Places (since January 16, 1991), which is a threshold requirement for both the owner-occupied and income-producing NC historic tax credits. Contributing status is still parcel-specific — confirm a given address within the 122-acre district with SHPO before relying on the credit.
What is the Plymouth Historic District, and why do the buildings mostly date from after 1880?
Plymouth was a significant North Carolina river port in the 19th century, and the town was burned during Civil War fighting in 1862 and again in 1864 — by the time the Battle of Plymouth ended, contemporary accounts described the town as little more than a remnant of scattered buildings. The rebuilding that followed in the decades after the war is a large part of why the National Register district's contributing buildings mostly date from roughly 1880 to 1930, in Colonial Revival, Bungalow/American Craftsman, and Late Victorian styles, rather than from the antebellum period.
How big is the Tier 1 bonus, exactly?
This page does not state a confirmed combined final percentage for the Tier 1 income-producing bonus. Before relying on a specific number for project financials, confirm the exact combined percentage and how it applies with SHPO or the NC Department of Revenue.
Do I get the federal 20% credit on a home I live in?
No. The federal 20% historic tax credit applies only to income-producing certified historic structures. If you live in the home, you qualify for North Carolina's 15% owner-occupied state credit instead, not the federal credit.
Considering a historic property in Plymouth or elsewhere in Washington County?
Travis can help you confirm National Register and contributing status on a specific address, and think through the owner-occupied versus income-producing math before you buy.
Data note: This page is for informational purposes only and does not constitute legal, financial, or tax advice. Historic tax credit eligibility, percentages, bonuses, and caps are governed by the NC State Historic Preservation Office, the NC Department of Revenue, and the National Park Service/IRS, and are subject to change. The Tier 1 bonus figure and any combined percentage should be confirmed with SHPO or NCDOR before relying on them for a specific project.