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IRS Form 3468 Draft Shows HTC to be taken at 4 Percent Annually

Monday, October 8, 2018 - 2:30PM

An early release draft of the Internal Revenue Service’s (IRS’s) Form 3468 for the 2018 tax year indicates that the IRS will require taxpayers to claim the federal historic tax credit (HTC)–for projects not subject to transition rules made after tax reform–at a 4 percent rate per year over five years, beginning with the year it is placed in service. A provision of the tax reform legislation passed last December required the HTC to be claimed ratably over five years, rather than the year it was placed in service, as under previous law. A final release of IRS Form 3468 is expected out this month.

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