Source: https://taxassociate.wordpress.com/2015/02/
Timestamp: 2019-04-25 05:55:14+00:00

Document:
I.R.C. § 38(a) generally allows as a credit against tax in a given taxable year the sum of the business credit carryforwards carried to that taxable year (I.R.C. § 38(a)(1)), the current year business credit (I.R.C. § 38(a)(2)), and the business credit carrybacks carried to that year (I.R.C. § 38(a)(3)). I.R.C. § 38(b)(1) provides that the business credit includes the investment credit determined under I.R.C. § 46, which in turn provides that the investment credit includes the rehabilitation credit under I.R.C. § 47.
The rehabilitation credit for any given taxable year is the sum of (a) 10 percent of the qualified rehabilitation expenditure for any qualified rehabilitated building other than a certified historic building, and (b) 20 percent of the qualified rehabilitation expenditure for any certified historic building.
A qualified rehabilitation expenditure is taken into account generally once the qualified rehabilitated building is placed in service.
Chief Counsel Advice 201507020 (January 8, 2015): IRS provided correct computation of increase in tax imposed by IRC Sec(s). 50(a)(1) where taxpayer carried over its unused IRC Sec(s). 47(a) credit with respect to qualified rehabilitated building/certified historic structure but subsequently disposed of that property more than 2, but less than 3, years after it was placed in service.
You are currently browsing the Public Finance blog archives for February, 2015.

References: § 38
 § 38
 § 38
 § 38
 § 38
 § 46
 § 47