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
Related programs
Carbon Oxide Sequestration Credit (Internal Revenue Code §45Q)
Per-metric-ton credit
Calculation illustration only: 10,000 verified eligible metric tons multiplied by an assumed applicable rate of $85 per ton would give $850,000.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Alabama Investment Credit
Up to
Certified manufacturers can receive multi-year credits for qualified capital investment; useful for larger fixed-facility expansions.
Full Employment Act Credit
$1,000 once for each qualifying new job after 12
Small businesses creating qualifying jobs may receive an income-tax credit.
Veterans Employer Credit
$2,000 employer credit for qualifying hires
Broad employer credit for hiring qualifying veterans.