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Article 3H – Mill Rehabilitation Tax Credit

To claim a tax credit for rehabilitating a historic mill facility, an application for an eligibility certification must have been submitted before January 1, 2015. The taxpayer must provide a copy of the eligibility certification and the cost certification. The amount of credit depends on the location of the facility and whether it was renovated as income producing or nonincome producing property. The credit may be claimed in the year in which the eligible site is placed into service. When the eligible site is placed into service in two or more phases in different years, the amount of credit that may be claimed in a year is the amount based on the qualified rehabilitation expenditures associated with the phase placed into service during that year.

Individuals claiming the credit for rehabilitating an income-producing historic mill facility Article 3H shall enter qualified rehabilitation expenditures in the year the credit is taken on Line 10a and the credit amount on Line 10b of Form D-400TC.

Individuals claiming the credit for rehabilitating a nonincome-producing historic mill facility Article 3H shall enter rehabilitation expenses in the first year the credit is taken on Line 11a and the installment amount of the credit on Line 11b of Form D-400TC. The credit is claimed in five equal installments beginning with the taxable year in which the property is placed in service.

Important: Any unused portion of either tax credit may be carried forward for the succeeding nine years. Complete Form D-400TC, Part 3, Line 15, to claim tax credits carried over from a previous tax year, if any.

More information about the credit for rehabilitating a historic mill facility