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Capital Absorption Opportunity · Federal funding and tax credits

Historic Tax Credits

Definition

For the owner of a certified historic structure, the rehabilitation credit, 20 percent of qualified rehabilitation expenditures taken over five years, can be turned into project capital.[1] An investor typically contributes equity in exchange for the right to claim the credit.

Federal law

  1. Tax Cuts and Jobs Act (popular name), Pub. L. 115-97, § 13402, 131 Stat. 2134. Set the current rehabilitation credit: 20 percent, certified historic structures only, taken ratably over five years (26 U.S.C. § 47). Official text: govinfo.gov, U.S. Government Publishing Office.

Also defined as