NC-Rehab: Historic Rehabilitation Tax Credits (2025)
North Carolina · North Carolina DOR · Used for tax years 2025
Form NC-Rehab calculates North Carolina historic rehabilitation tax credits for 2025 for income-producing and nonincome-producing historic structures. It reports rehabilitation expenditures or expenses, applicable bonuses, and unused credits carried forward from previous years.
Who files this form
The 2025 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 choices for individuals, C corporations, S corporations, partnerships, estates or trusts, and insurance taxpayers.
What you'll need
The form asks for the following information to complete the credit calculation:
- Your individual name and Social Security number, or entity legal name and federal employer identification number.
- Your tax year and the type of tax return you filed.
- Whether you are allowed a federal Section 47 credit and whether the structure is income-producing or nonincome-producing.
- The address and county where the historic structure is placed in service. List each location if expenses cover multiple locations.
- Total qualified rehabilitation expenditures for an income-producing structure, or total rehabilitation expenses per discrete property parcel for a nonincome-producing structure.
- For income-producing structures, amounts spent on structures in a development tier 1 or tier 2 area, on an eligible targeted investment site, or used for an educational purpose.
- Any unused credit from previous years.
The supplied form does not list supporting documents to attach.
How to file
Fill in the circle matching the tax return you filed: D-400, CD-405, CD-401S, D-403, D-407, or one of the listed insurance returns.
Complete Part 1 with the qualifying information. Use Part 2 to calculate the income-producing structure credit or Part 3 to calculate the nonincome-producing structure credit. Part 4 calculates the amount to be taken in 2025, including unused credit from previous years.
For paper submissions, submit originals only, not photocopies. Do not include the page headed “Instructions for Handwritten Forms.”
The supplied text does not provide a mailing address or e-filing instructions.
Common mistakes
- Using the wrong ink: Use blue or black ink, not red.
- Adding punctuation to handwritten entries: Do not use dollar signs, commas, or other punctuation marks.
- Using incorrect print settings: Set page scaling to “none,” uncheck Auto-Rotate and Center, and do not print on both sides of the paper.
- Sending copies: Submit originals only. Do not submit photocopies of returns or mix form types.
- Including the handwritten-forms instruction page: That page says not to include it.
- Combining nonincome-producing parcels in one calculation: Complete a separate Part 3 for each discrete property parcel if you invested in more than one.
- Omitting project locations: List each address if you have expenditures or expenses at multiple locations.
Questions people ask
Does federal credit eligibility affect which credit I can take?
Yes. The income-producing structure credit requires eligibility for a federal Section 47 credit. The nonincome-producing structure 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 the address of each location. For nonincome-producing properties, complete a separate Part 3 for each discrete property parcel.
Where do I enter unused credits from earlier years?
Enter unused income-producing structure credits on Part 4, line 22, and unused nonincome-producing structure credits on Part 4, line 25. These amounts are added to the respective 2025 credits to calculate the total credit amounts.