IRS Released Notice 2006-38 Advising Taxpayers of Certain Relief Provided for Having Rehabilitation Credit Projects in Areas Affected by the 2005 Hurricanes

Thursday, March 23, 2006 - 7:15AM

In Notice 2006-38, the Internal Revenue Service (IRS) today advised taxpayers of certain relief provided to taxpayers having rehabilitation credit projects in areas affected by hurricanes Katrina, Rita or Wilma in 2005. Internal Revenue Code (IRC) §1400N(h)(1), added by section 101 of the Gulf Opportunity Zone (GO Zone) Act of 2005, increases the credit percentage to 13 percent for qualified rehabilitation expenditures paid or incurred during the period beginning on August 28, 2005, and ending on December 31, 2008, with respect to any qualified rehabilitated building located in the GO Zone. IRC §1400N(h)(2) increases the credit percentage to 26 percent for qualified rehabilitation expenditures paid or incurred during the same period, with respect to any certified historic structure located in the GO Zone.

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