The IRS has released final regulations (TD 9915
) implementing changes to the Section 47 rehabilitation credit made by the Tax Cuts and Jobs Act (TCJA). The final regulations adopt proposed regulations
issued in May without modification.
The TCJA made several changes to the rehabilitation credit, most notably requiring it to be claimed ratably over a five-year period beginning in the taxable year in which qualified rehabilitated building is placed into service. The IRS issued proposed regulations to provide guidance on how this change would affect taxpayers claiming the credit, along with other conforming amendments and examples under the Section 47 regulations.
The final regulations adopt the proposed regulations without modification. They apply to taxable years on or after the date they are published in the Federal Register
. However, taxpayers may choose to apply them for qualified rehabilitation expenditures paid or incurred after Dec. 31, 2017, in taxable years beginning before the date the final rules are published in the Federal Register
, so long as they do so entirely and consistently.
Washington National Tax Office
+1 202 861 4143
Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.