Introduction

• Author: William F. Machen
• Pages: 1-8

Section 47 of the Internal Revenue Code of 1986, as amended (the

Code or the I.R.C.), allows taxpayers to claim a credit (the Reha-

bilitation Tax Credit) for certain expenses incurred in connection

with the rehabilitation of older or historic buildings. The amount

of the credit is 20 percent of the “qualied rehabilitation expen-

ditures” incurred in connection with a “certied rehabilitation”

of a “certied historic structure” or 10 percent of the qualied

rehabilitation expenditures incurred with respect to a nonresi-

dential building placed in service before 1936. A certied historic

structure is a building that either is listed as such in the National

Register of Historic Places (National Register) or is located in a

“registered historic district” and is certied by the secretary of the

interior (the secretary), acting through the National Park Service

(NPS), as being of historic signicance to the district.

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A registered

historic district includes any district listed in the National Regis-

ter, as well as a district statutorily designated by a state or local

government, provided that the relevant statute has been certied

by the secretary as incorporating proper criteria for substantially

achieving the purpose of preserving and rehabilitating historically

signicant buildings, and the district is certied by the secretary

1. I.R.C. §47(c)(3)(A) (2012 & Supp. 2013). Unless otherwise noted, all cita-

tions to the Internal Revenue Code are to Title 26 of the United States Code, 2012

Edition, Supplement I (2013), with laws in effect as of January 16, 2014.

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Introduction 1

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