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.
Pitt County's historic asset: the Farmville Historic District
Pitt County's marquee National Register-listed historic asset is the Farmville Historic District, added to the National Register of Historic Places in 1993. It's a roughly 116-acre district in the town of Farmville that grew up around the tobacco trade — a former tobacco sales and warehouse district whose contributing buildings mostly date from 1900 to 1943. 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.
The Tier 1 bonus for income-producing projects
Pitt County is a North Carolina state-designated Tier 1 county for 2026 — the most economically distressed development tier under the NC Department of Commerce's annual county tier rankings, confirmed in the Department's November 2025 tier memo. Because of that designation, income-producing rehabilitation in Tier 1 counties like Pitt is generally eligible for a bonus on top of the standard NC credit tiers. That means income-producing projects in Pitt 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 Pitt County the same way it does statewide — there is no special Pitt 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) |
| Pitt 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 Farmville 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 renovation in the Farmville Historic District specifically? See The Farmville Historic District for a closer look at buying and renovating in a National Register warehouse town, and Historic Tax Credits for Heritage Towns for a plain-language walkthrough of the rehabilitation credit as it applies to Pitt County's small towns.
Frequently asked questions
Does Pitt 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 Farmville Historic District eligible for these credits?
The Farmville Historic District is listed on the National Register of Historic Places (since 1993), 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 roughly 116-acre district with SHPO before relying on the credit.
What was the Farmville Historic District used for?
It was Farmville's tobacco sales and warehouse district, with most contributing buildings dating from 1900 to 1943. That commercial and agricultural history is typical of the kind of building stock — warehouses, storefronts, sales floors — that has been successfully rehabilitated under both the owner-occupied and income-producing NC historic tax credit programs elsewhere in the state.
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 Farmville or elsewhere in Pitt 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.