In 1972, California State legislators adopted the Mills Act, a state law that allows local governments to reduce property taxes on historic properties in exchange for the preservation and rehabilitation of those properties. To pursue this historic preservation tax credit, an owner of a qualified  Santa Ana historic  property must enter into  an Historic Property Preservation Agreement with the city. Under this contract agreement, the property owner agrees to protect, preserve, and maintain the property in accordance with specific preservation standards and other conditions in exchange for property tax credits. A preservation agreement with the City of Santa Ana is required in order to enjoy the tax credit benefits authorized by the Mills Act. Once your application is reviewed  and approved by the City of Santa Ana Historic Resources Commission and the City Council, a  formal  preservation  contract  agreement  is  to  be  in  effect  for  a  minimum of ten years, automatically renewed every year, and automatically transferred to new property owners when the property is sold or exchanged, sold or exchanged. Should  the  property  owner  maintain  the  property in accordance with the terms of the contract, the property owner is eligible to receive tax credit benefits through the Mills Act program. As property values and tax rates vary, the exact savings will also vary from property to property. To apply for the Mills Act, click HERE. To read about historic preservation in Santa Ana, click HERE.