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10% Rehabilitation Tax Credit

Non-Historic Commerical Buildings Built Before 1936

Administered by IRS; does not involve review by IHPA.

-Go to IRS website to download Form 3468 and instructions: www.irs.gov.
-Select the “Forms and Publications” link on the left navigation bar.
-Contact the IRS: 800.829.1040

Details:

  • Receive a credit of 10% of the amount spent to rehab a non-historic building built before 1936.
  • Only non-National Register buildings are eligible.
  • Income-producing residential and owner-occupied housing are not eligible.
  • Must be a substantial rehabilitation.
    • -Spend more than $5,000 or the adjusted basis during a 24-month period.
  • Eligible work includes masonry repair, exterior parinting, interior remodeling and mechanical work.
  • Ineligible work includes building addition, appliances, furniture and fixtures.
  • Must pass a physical retention test.
    • -50% of exterior walls must remain as exterior walls; and
    • -75% of exterior walls must remain as eterior or interior walls; and
    • -75% of building’s internal structure must remain.
  • No IHPA, NPS or other formal design-review process.
  • No application fee.
  • Applicant submits form to the IRS.
  • Documentaton of renovation expenditures must be retained.