Daily Tax Report ®

IRS Issues Rehabilitation Tax Credit Rules After Law Change (3)

May 21, 2020, 12:49 PMUpdated: May 21, 2020, 6:58 PM

Proposed IRS rules on the tax law’s changes to a credit for rehabilitating historic buildings align with how professionals have been interpreting the provision.

The rules (REG-124327-19), released Thursday, pertain to the five-year period for claiming the credit, under tax code Section 47.

Prior to the 2017 law, Section 47(a) offered a two-tier credit, meant to encourage the rehabilitation of historic buildings. The provision included a 20% credit for qualified expenses relating to a historic structure and a 10% credit for qualified expenses related to certain buildings placed in service before 1936.

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