New IRS Guidance Further Delineates Qualified Rehabilitation Expenditures for HTCs
The Internal Revenue Service (IRS) published new guidance this month further clarifying costs that can be qualified rehabilitation expenditures (QREs) when using historic tax credits (HTCs). The guidance outlines what generally qualifies as QREs, what qualifies as QREs under certain circumstances and what generally does not qualify. The expanded guidance includes information about costs associated with flood adaptation, as well as solar panels, wind turbines and geothermal systems.
To learn more about how to apply this updated guidance, consult with Novogradac’s HTC team. To brush up on HTC basics, listen to the Feb. 8, 2022, episode of the Tax Credit Tuesday podcast featuring host Michael Novogradac, CPA, and Novogradac partner, Gregory Clements, CPA.