Preserve history, get money.

Blacksburg officials are working on a proposal to expand a historic district that could net cash for renovation of some downtown properties.

If it goes through, the expansion of a National Historic Register District could help pay for the town's long-hoped-for museum initiative and benefit private property owners, too.

For those who just panicked, thinking, "Here comes big brother to tell me I can't install my new thermal windows," town museum director Terry Nicholson advises calm.

"We're not going to be telling anybody they can't do something to their house," Nicholson said. "This will actually benefit the homeowners."

Blacksburg currently has three designated historic districts: local, state and national. The local district imposes some restrictions by town ordinance.

This new plan will expand only the town's state and federal historic districts. Those designations do not impose any automatic restrictions or review requirements on property owners. They do allow property owners to apply for state and federal tax credits that can be converted to cash for renovations of old properties.

The tax credit program does limit what can be done to a property, but participation is voluntary, said John Kern, director of the Roanoke office of the Virginia Department of Historic Resources.

In fact, not every property in the expanded district would be eligible for the tax credit program. Participating properties must meet age and other requirements, Kern said.

The town would also benefit from the designation. If granted, the expansion would likely include the Alexander Black House on Draper Road and help the town qualify for up to $1 million in tax credits for its renovation.

Officials and the town's museum committee have been working for years on a $3 million plan to turn the house into a town museum. Efforts have been stymied, however, because the house -- built in 1897 by members of the town's founding family -- was moved from Main Street to Draper Road in 2002 to make way for the Kent Square retail and office complex. The move disqualified the house from an individual listing on the state and national historic registers, Kern said.

If the building is included in the expanded historic district, however, it may become eligible for tax credits.

The town is already using the tax credit program to help fund an estimated $400,000 renovation of the Odd Fellows Hall on Gilbert Street and a $5.1 million restoration of the old Doc Roberts Tire Co. on South Main Street. Both of those properties were listed individually on the National Historic Register.

Work is ongoing at the Doc Roberts site, which will eventually house the town's planning and engineering departments. According to Nicholson, work is also set to soon begin on the renovation of the Odd Fellows Hall, which will become the town's black history museum.

The town has already applied to Kern's office for a matching grant to pay half of the up to $17,000 in consulting fees required to apply for the district expansion. A consultant is required because the application must meet strict federal guidelines set by the U.S. Department of the Interior, Kern said.

So far, about 70 such historic districts have been designated in Southwest Virginia, Kern said.

The districts can preserve the cultural heritage of an area, which often translates to tourism and economic development as it has in Roanoke, where Kern said the Jefferson Center and the Roanoke Higher Education Center were both renovated through the tax credit program. Urban housing is also being built or rehabilitated using the credits, he said.

"The more you know about an area, the more important it becomes for community awareness. If you know about the significance, maybe you'd be less inclined to knock stuff down for a strip mall," Kern said.

If approved, the expanded district would not take effect until late in 2009, Kern said. Public comment sessions on the plan will be scheduled later this year.