Rehabilitation Tax Credit

Rehabilitation Tax Credit means:
a 20% tax credit for rehabilitating certified historic structures, and a 10% credit for industrial and commercial buildings placed in service before 1936. However, the following conditions are imposed:

• The credit may be used to offset a maximum of $25,000 of nonpassive income, but is phased out on a 50% basis between $200,000 and $250,000 of Adjusted Gross Income. Thus, the credit is not of use to high-income investors.

• The tax basis of the property is reduced by the full amount of the credit. Former IRC (check if this IRC provision is current here) §47.