Final Regs Issued for Rehabilitation Credit


The IRS has issued final regulations for taxpayers who claim the rehabilitation credit. For qualified rehabilitation expenditures paid or incurred after 12/31/17, the Tax Cuts and Jobs Act (TCJA) amended the credit so that, generally, taxpayers must claim the rehabilitation credit over a 5-year period. The final regulations require taxpayers to determine the rehabilitation credit amount in the year they place the building into service and allocate that amount ratably over the 5-year period. The regs also include a rule to coordinate the TCJA amendments with the special rules for the investment credit, of which the rehabilitation credit is part. Read the regs HERE.