There are various benefits that assist applicants and property owners to preserve, rehabilitate, and improve a historic resource. State and Federal preservation incentive programs can result in tangible benefits to property owners including federal tax credits, property tax relief programs, and alternative building codes. The information below is meant to guide property owners looking to preserve the historic nature of their property and is not meant to be an endorsement or recommendation of any organization or program. 

Mills Act – Local Tax Incentives

The Mills Act authorizes the City to enter into contracts with property owners of qualified historic resources to provide for the use, maintenance, and restoration to retain the historic resource’s significance. In return, the property owner may qualify for a reduction in property taxes for a given period. Please see the City’s Mill Act Resolution for more information.

Other Tax Incentives

The National Park Service and Internal Revenue Service oversee the Federal Historic Preservation Tax Incentives program, which offers a tax credit for rehabilitation projects that closely follow the Secretary’s Standards. This program applies only to National Register-listed properties (including historic district contributors) that generate income, so owner-occupied residences are not eligible. In recent years, the State of California has also funded the State Historic Preservation Tax Credit, which is expected to launch in 2024. Additional details on this state program are forthcoming.

State Historical Building Code

Construction and remodeling projects for historic properties can deviate from standard building code requirements by using the State Historical Building Code. This building code considers the unique construction methods and other challenges of older buildings, and it allows some flexibility that is not otherwise available for new construction. The State Historical Building Code balances historic preservation, energy efficiency, and life-safety performance.

Community Involvement

Community members are welcome to get involved in historic preservation in San Mateo. This can include hands-on preservation of significant historic resources, participating in historic preservation advocacy groups, and attending Planning Commission and City Council hearings when historic resources are discussed. Community members can also learn more about the Downtown Historic District through a Self-Guided Walking Tour.