historic preservation credits

historic preservation credits

A common name given to the IRS concept of rehabilitation tax credits,allowing tax credits equal to 10 percent of the cost of renovation,reconstruction,and restoration of buildings placed in service before 1936.A larger credit,20 percent,is allowed for certified historic structures.There is a special increase for properties in the Gulf Opportunity Zone (named counties suffering hurricane damage in the 2005 hurricane season) with 13 percent allowed for pre-1936 buildings and 26 percent for certified historic structures.The properties do not need to have suffered any hurricane damage, as long as they are in the specifically named states and counties. See Form 3468,“Investment Credit,”and the attached instructions,available at the IRS Web site, www.irs.gov.