IRS Issues Final Federal Historic Tax Credit Regulations

Tuesday, September 15, 2020 - 12:15pm

The Internal Revenue Service submitted final regulations today for publication in the Federal Register concerning the five-year period over which the federal historic tax credit (HTC) may be claimed, along with other special rules for investment credit property. Proposed regulations were published in May and adopted as final without modification. The regulations include a general rule for calculating the HTC, definitions for the terms “ratable share” and “rehabilitation credit determined,” and rules to coordinate changes to Internal Revenue Code (IRC) Section 47 with special rules in IRC Section 50 relating to dispositions, basis adjustment and income inclusion. The rules will be effective upon publication in the Federal Register.

The final regulations and their implications will be discussed that the Novogradac 2020 Historic Tax Credit Virtual Conference, Sept. 24-25.