NC-Rehab: Historic Rehabilitation Tax Credits (2024)

Who files this form

The 2024 NC-Rehab form calculates historic rehabilitation tax credits for income-producing and nonincome-producing historic structures.

• Income-producing structures: You can take this credit only if you are allowed a federal income tax credit under Section 47 of the Internal Revenue Code.
• Nonincome-producing structures: You can take this credit only if you are not allowed a federal Section 47 credit and have rehabilitation expenses of at least $10,000 per discrete property parcel.

The form includes return-type selections for individuals, C corporations, S corporations, partnerships, estates or trusts, and insurance taxpayers.

What you'll need

Have the information needed to complete the form:

• Your individual name and Social Security number, or entity legal name and federal employer identification number.
• The type of tax return you filed and your tax-year dates.
• The historic structure’s address and county. If you have qualifying expenditures or expenses at multiple locations, list each location’s address.
• Whether the structure is income-producing or nonincome-producing, and whether you are allowed a federal Section 47 credit.
• Your total qualified rehabilitation expenditures or rehabilitation expenses per discrete property parcel.
• For income-producing structures, any qualifying amounts for the development tier, targeted investment, or education bonuses.
• Any portion of the credit not taken in previous years.

The form text does not specify supporting documents to attach.

Common mistakes

• Do not claim the income-producing credit unless you are allowed a federal Section 47 credit.
• Do not claim the nonincome-producing credit if you are allowed a federal Section 47 credit or have less than $10,000 in rehabilitation expenses per discrete property parcel.
• For nonincome-producing structures, complete a separate Part 3 for each discrete property parcel if you invested in more than one.
• List each location’s address if your qualifying expenditures or expenses cover multiple locations.
• Use capital letters for names. For handwritten forms, use blue or black ink, not red ink, and do not add dollar signs, commas, or other punctuation marks.
• When printing, set page scaling to “none,” uncheck Auto-Rotate and Center, and do not print on both sides of the paper.
• Submit originals, not photocopies of returns. Do not mix form types or include the handwritten-form guidelines page.

Questions people ask

Does eligibility for the federal historic rehabilitation credit matter?

Yes. The income-producing credit requires that you be allowed a federal income tax credit under Section 47. The nonincome-producing credit requires that you not be allowed that federal credit.

Is there a minimum expense requirement for a nonincome-producing structure?

Yes. Rehabilitation expenses must be at least $10,000 per discrete property parcel.

What if I rehabilitated more than one property?

List each location’s address when you have qualifying expenditures or expenses at multiple locations. For nonincome-producing properties, complete a separate Part 3 for each discrete property parcel.

Where do I enter unused credits from previous years?

Part 4 provides carryforward entries for the portion of credit not taken in previous years. Use Line 22 for the income-producing credit and Line 25 for the nonincome-producing credit.

What bonuses are listed for income-producing structures?

Part 2 lists a 5% development tier bonus for qualifying amounts spent on a structure in a development tier 1 or tier 2 area, a 5% targeted investment bonus for qualifying amounts spent on a structure on an eligible targeted investment site, and a 5% education bonus for qualifying amounts spent on a structure used for an educational purpose.

Official sources

• https://www.ncdor.gov/tax-forms/2024-nc-rehab-historic-rehabilitation-tax-credits/open