A historic structure is a building officially recognized for its historic significance. Such structures may qualify for special tax credits aimed at encouraging their preservation and rehabilitation.
Recapture is the process of taxing at ordinary rates the portion of the gain on a sale that represents prior depreciation allowances or prior tax credits, thereby increasing the taxable income of the seller.
The Rehabilitation Tax Credit encourages the preservation of historic buildings through tax incentives. It offers a 10% tax credit for the rehabilitation costs of certain older, non-residential buildings and a 20% tax credit for certified historic structures.
