real estate development tax credits and how they work

[Rich Hupper]

I am looking a 16000 SF building in a historic part of town. I am aware of the state and federal government offering developers tax credits for rehabilitation and preservation of certain buildings. This is one of those buildings. Aside from historic tax credits, what other tax credits may be available for owners?

Also how do the tax credits work? Does the government pay for a percentage of the costs that involved with the rehabilitation? So if the total project cost 1 million and the government was offering a 20% tax credit they would send you a check for 200k?

Or does the tax credit allow you to keep more of the passive rental income at the end of the year? 

Thank you for your input.