Qualifying Developments – Developers can receive a credit equal to 25% of their rehabilitation expenses. Includes most expenses except acquisition price. Developer must file with the department a Notice of Intent to Rehabilitate prior to incurring any expenses associated with the rehabilitation.
Credit Stream – Credits are earned in the year placed in service but taken in equal installments over 3 years.
Carryforward – Unused credits may be carried forward for 5 years.
Recapture – There is no recapture provision.
Transferability – The credit can be transferred to members or partners of a pass-through entity in the year the credit is earned without limitation. Therefore, syndication of these credits requires the issuance of a K-1. Any remaining or unused credits my be transferred to a subsequent purchaser of the abandoned building site.
