Provides a tax credit for the rehabilitation of historic buildings
There are two types of ITCs available: 20% for a certified historic structure or 10% for a non-historic structure. The historic property must be income producing. To qualify for the 20% credit, the building must be listed on the National Register of Historic Places, or listed as a contributing structure within a National Register Historic District. The rehabilitation project must meet the "substantial rehabilitation test," which means the owner must spend the adjusted value of the building or $5000, whichever is greater.To qualify for the 10% credit, the structure must have been built before 1936 and must not be listed or eligible for listing on the National Register of Historic Places, the structure must retain 50-70% of external walls and 75% of internal walls, the rehabilitation must meet the "substantial rehabilitation test" as in the 20% credit, and the structure must be used for five years as an income producing property but not as housing.
Created to encourage the rehabilitation of historic buildings.