Get Directive 08-9: Historic Rehabilitation Tax Credit Phased-in Projects

Through the Historic Tax Credit (HTC) program, federal tax law provides an income tax credit to developers, who own historic buildings that undergo substantial rehabilitations into income-producing uses, such as housing.

And when you take into account that a typical 30-day drug rehab stay includes meals, lodging, therapy, medical treatment, psychiatric treatment and much more, those costs can be high. But are drug rehab expenses tax deductible? The short answer: Yes.

The 24-month measuring period is used to determine whether a building (or portion of a building) is substantially rehabilitated as part of determining whether the credit may be claimed, but the rehabilitation can occur over a longer time period.

The Federal investor must remain as a partner in a project for a minimum of 5 years after construction, which is the compliance period for the Federal HTC program.

The rehabilitation credit–under Internal Revenue Code (IRC) Section 47–is also commonly referred to as the historic preservation or historic tax credit. The credit provides a tax incentive to rehabilitate historic buildings.

(2) Qualified rehabilitation expenditure defined (A) In general The term “qualified rehabilitation expenditure” means any amount properly chargeable to capital account— (i) for property for which depreciation is allowable under section 168 and which is— (I) nonresidential real property, (II) residential rental property ...

The federal historic rehabilitation tax credit (HTC) program is an indirect federal subsidy to finance the rehabilitation of historic buildings with a 20 percent tax credit for qualified expenditures.

Transitional rule Under the 2017 TCJA transition rule: (1) for certified historic buildings, there is a 20% credit entirely claimed in the placed-in-service year. Or (2) for pre-1936 buildings that are not certified historic structures, there is a 10% credit entirely claimed in the placed-in-service year.

The amount of the rehabilitation credit is determined in the taxable year the building is placed in service. The amount of the credit is equal to 20 percent of the “qualified rehabilitation expenditures” with respect to a “qualified rehabilitated building.”

Research expenses claimed by companies under the R&D tax credit are called qualified research expenses (QREs).

The federal historic rehabilitation tax credit (HTC) program is an indirect federal subsidy to finance the rehabilitation of historic buildings with a 20 percent tax credit for qualified expenditures.

The amount of the rehabilitation credit is determined in the taxable year the building is placed in service. The amount of the credit is equal to 20 percent of the “qualified rehabilitation expenditures” with respect to a “qualified rehabilitated building.”

Through the Historic Tax Credit (HTC) program, federal tax law provides an income tax credit to developers, who own historic buildings that undergo substantial rehabilitations into income-producing uses, such as housing.

And when you take into account that a typical 30-day drug rehab stay includes meals, lodging, therapy, medical treatment, psychiatric treatment and much more, those costs can be high. But are drug rehab expenses tax deductible? The short answer: Yes.

The 24-month measuring period is used to determine whether a building (or portion of a building) is substantially rehabilitated as part of determining whether the credit may be claimed, but the rehabilitation can occur over a longer time period.

The Federal investor must remain as a partner in a project for a minimum of 5 years after construction, which is the compliance period for the Federal HTC program.

The rehabilitation credit–under Internal Revenue Code (IRC) Section 47–is also commonly referred to as the historic preservation or historic tax credit. The credit provides a tax incentive to rehabilitate historic buildings.

(2) Qualified rehabilitation expenditure defined (A) In general The term “qualified rehabilitation expenditure” means any amount properly chargeable to capital account— (i) for property for which depreciation is allowable under section 168 and which is— (I) nonresidential real property, (II) residential rental property ...

The federal historic rehabilitation tax credit (HTC) program is an indirect federal subsidy to finance the rehabilitation of historic buildings with a 20 percent tax credit for qualified expenditures.

Transitional rule Under the 2017 TCJA transition rule: (1) for certified historic buildings, there is a 20% credit entirely claimed in the placed-in-service year. Or (2) for pre-1936 buildings that are not certified historic structures, there is a 10% credit entirely claimed in the placed-in-service year.

The amount of the rehabilitation credit is determined in the taxable year the building is placed in service. The amount of the credit is equal to 20 percent of the “qualified rehabilitation expenditures” with respect to a “qualified rehabilitated building.”

Research expenses claimed by companies under the R&D tax credit are called qualified research expenses (QREs).

The federal historic rehabilitation tax credit (HTC) program is an indirect federal subsidy to finance the rehabilitation of historic buildings with a 20 percent tax credit for qualified expenditures.

The amount of the rehabilitation credit is determined in the taxable year the building is placed in service. The amount of the credit is equal to 20 percent of the “qualified rehabilitation expenditures” with respect to a “qualified rehabilitated building.”