Federal Tax Credits · Historic Rehabilitation · FED-HIST-001
Rehabilitation Credit (Internal Revenue Code §47)
Publication revised September 24, 2026. Sourcebook page 21.
Credit amount / calculation
Generally 20% of qualified rehabilitation expenditures for a certified historic structure, claimed as provided by federal law.
Business fit and eligible activity
A forest-products company rehabilitating a certified historic mill or industrial building for income-producing use may qualify. Eligible property rehabilitation or redevelopment; not the cost of wood supplied to someone else's project.
Illustrative business benefit
For $2 million of certified qualifying rehabilitation expenditures, the 20% credit is $400,000 in total, generally claimed in five equal $80,000 annual installments. Tax limits, basis adjustments, certification and recapture rules still apply.
Timing / first action
Check application or certification requirements before incurring the qualifying expense or beginning the qualifying activity.
Official sources
- Internal Revenue Service - Rehabilitation Tax Credit (irs.gov)
- Internal Revenue Service - Form 8933 Instructions (irs.gov)
- Internal Revenue Service - Clean Electricity Investment Credit (irs.gov)
- Internal Revenue Service - Clean Electricity Production Credit (irs.gov)
- Internal Revenue Service - Clean Fuel Production Credit (irs.gov)
- Internal Revenue Service - Qualified Small Business Payroll Tax Credit (irs.gov)
- Internal Revenue Service - Employer-Provided Child Care Credit, 2026+ (irs.gov)
- Internal Revenue Service - Rehabilitation Tax Credit (alabama.gov)
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