This former medical clinic in Madison, Wisconsin,
was rehabilitated for a new use as residential apartments.
Photo: NPS files
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If the rehabilitation work begins before the application
is submitted, can the project be approved while it is underway or
when it is finished?
Answer
This is never recommended. The program regulations state that owners
who begin rehabilitation work prior to getting approval from the
National Park Service do so at their own risk. If a project has
already begun before it is reviewed by the National Park Service,
and if some of the work does not meet the Standards, the owner may
be required to do remedial work in order for the project to meet
the Standards and to receive the tax credit. Or the project could
be denied approval outright, in which case the owner would not be
eligible for the credit.
Also, by federal regulation, a rehabilitation project completed
prior to submitting a request for “certified historic
structure” status cannot qualify for the rehabilitation tax
credit. Therefore, it is very important that owners apply for the
rehabilitation tax credit before completing work, and preferably,
well in advance of beginning work.
![Program Essentials: IRS involvement](images/right_arrow.gif)
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