To protect heritage sites and other history, the IRS implemented its rehabilitation tax credit, which offers an incentive to renovate and restore old or historic buildings. Here are some of the highlights to help you determine whether your building is eligible:
- The credit may pay 20 percent of the qualifying costs of rehabilitating a historic building.
- This 20 percent needs to be spread out over five years.
- The credit doesn’t apply to the purchase of the building.
- Taxpayers use Form 3468, Investment Credit, to claim the rehabilitation tax credit.
Although this credit might not significantly improve many situations, it’s still a step toward preserving our country’s history.
This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS9
Footnotes and Sources
- IRS.gov, April 30, 2024
