The rehabilitation credit applies to costs you incur for rehabilitation and reconstruction of certain buildings. Rehabilitation includes renovation, restoration, and reconstruction. It does not include enlargement or new construction.
Generally, the percentage of costs you can take as a credit is:
- 10% for buildings placed in service before 1936
- 20% for certified historic structures
The rehabilitation credit is increased for qualified rehabilitation expenditures paid or incurred after August 27, 2005, and before January 1, 2009, on building located in the Gulf Opportunity zone as follows:
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For pre-1936 building (other than certified historic structures) the credit percentage is increased from 10% to 13%.
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For certified historic structures, the credit percentage is increased from 20% to 26%.
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See Publication 4492 for additional information for Taxpayers Affected by Hurricanes Katrina, Rita, and Wilma.
See the instructions on Form 3468, Investment Credit (PDF), for more information.
Topical Tax Briefs
Late Submission of "HPC Application" (PDF)
Property Leased to a Tax-Exempt Entity (PDF)
Use of the Rehabilitation Tax Credit by Lessees (PDF)
Rehabilitation Tax Credit Recapture (PDF)
Allocations of Tax Credit (PDF)
Differences Between the Historic Rehabilitation Tax Credit and Low-Income Housing Tax Credit (PDF)
IRS Connection
Get Frequently Asked Questions (PDF) about the Tax Aspects of Historic Preservation.
References/Related Topics
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Regulation Section 1.48-12(f)(2) Qualified rehabilitated building; expenditures incurred after December 31, 1981
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Internal Revenue Code Section 47
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Note: This page contains one or more references to the Internal Revenue Code (IRC), Treasury Regulations, court cases, or other official tax guidance. References to these legal authorities are included for the convenience of those who would like to read the technical reference material. To access the applicable IRC sections, Treasury Regulations, or other official tax guidance, visit the Tax Code, Regulations, and Official Guidance page. To access any Tax Court case opinions issued after September 24, 1995, visit the Opinions Search page of the United States Tax Court.
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