A dollar-for-dollar credit, not a deduction, for rehabilitating a certified historic, income-producing building.
How it works
Qualified rehabilitation expenditures times 20% gives the total credit, claimed in equal installments over five years starting when the building is placed back in service.
What this does not include
Only expenditures on certified historic structures listed in (or eligible for listing in) the National Register of Historic Places qualify — this calculator computes the credit amount assuming eligibility, not a determination of whether a specific building qualifies.
How to use this calculator
- Enter qualified rehabilitation expenditures.
Frequently asked questions
What counts as a “qualified rehabilitation expenditure”?
Structural work, building repairs, electrical, plumbing, HVAC, and roof work generally qualify — property acquisition, new additions, and furniture generally do not.
Why is the credit spread over five years instead of claimed all at once?
The ratable claiming schedule was designed to align the credit’s benefit with the building’s ongoing use and to discourage short-term flipping of rehabilitated historic properties.
Can this credit be combined with the Low-Income Housing Tax Credit?
Yes, in some cases — historic rehabilitation projects that also qualify as affordable housing can potentially combine both credits, subject to specific coordination rules.
