Capital Deployment Opportunity · Tax credits and incentives
Historic Tax Credits
Definition
The federal historic tax credit, which the Internal Revenue Code calls the rehabilitation credit, equals 20 percent of the qualified rehabilitation expenditures on a certified historic structure, taken ratably over five years beginning when the building is placed in service.[1] Investors usually claim it by buying equity in the entity that owns the building.
Federal law
- Tax Cuts and Jobs Act (popular name), Pub. L. 115-97, § 13402, 131 Stat. 2134. Set the current rehabilitation credit: 20 percent, certified historic structures only, taken ratably over five years (26 U.S.C. § 47). Official text: govinfo.gov, U.S. Government Publishing Office.