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Financial Incentives

Owners of historic properties may qualify for substantial tax savings when they invest in rehabilitation through various financial incentive programs offered by the Illinois State Historic Preservation Office and the National Park Service.
Historic Tax Credits
How do the credits work?
Two credits are available and can be combined:

  • Federal Historic Tax Credit: 20% credit for qualified rehabilitation expenses 
  • Illinois Historic Preservation Tax Credit: 25% credit for eligible rehabilitation expenses
Both credits apply to qualified rehabilitation expenses on income producing historic buildings, and the state credit must be paired with the federal credit to be used.
Who qualifies?
Properties are classified as contributing or non-contributing to the district:

  • Contributing properties add to the historic character, keep their original features, and date from the district’s period of significance.
  • Non-contributing properties do not meet those standards and are not eligible.
A map of the final Downtown Historic District Boundaries is available, which includes a view of all the identified non-contributing properties within the district.
Who do I contact to apply?
The Illinois State Historic Preservation Office (SHPO) is the direct contact for Historic Tax Credit applications. Full guides and resources are available online on their website. 
SHPO Contact: (217) 782-4836
Where can I find application guides and resources?
Is there a recorded information session on these credits?
On December 3, 2025, the Village hosted a webinar with Anthony Rubano, Deputy State Historic Preservation Officer (SHPO), to provide a detailed look into Historic Tax Credits for property owners in the Downtown Historic District. Below is a recording of this meeting as well as the presentation slides:
Illinois Property Tax Assessment Freeze Program
What is the Illinois Property Tax Assessment Freeze Program?
Owner-occupied historic residences may qualify for the Illinois Property Tax Assessment Freeze program. This program freezes the assessed value of a principal residence for eight years, followed by a four-year step-up period, if the owner undertakes substantial rehabilitation and restoration.
See this one-page summary for more detail.
What properties qualify?
The building must be owner-occupied and serve as the owner's principal residence following completion of the rehabilitation. The program is primarily intended for single-family homes and residential buildings where the owner lives.
The building must be considered "Historic." In the Village of Libertyville, a building qualifies as historic if it meets one of the following criteria:
  • A designated landmark in the Village of Libertyville. Contact Wil Richardson, Planner at 847-918-2028 for questions regarding landmarking your property. The application can be found here.
  • Individually listed on the National Register of Historic Places, or a contributing property within a National Register Historic District.
  • A contributing property within the Village’s Local Historic District
The building must be rehabilitated in accordance with the Secretary of the Interior's Standards for Rehabilitation.
The rehabilitation's eligible expenses must equal or exceed 25% of the assessor's pre-rehab, fair-cash value of the property and must be incurred within a 24-month period, unless an extension is requested and granted.
Where can I find application guides and resources?
The Illinois State Historic Preservation Office (SHPO) is the direct contact for Tax Freeze applications. Full guides and resources are available online on their website.
SHPO Contact: SHPO.Freeze@illinois.gov