Article 3L – Historic Tax Credits Investment Program

Important: To claim this tax credit, you must complete Form NC-Rehab and attach the form to the front page of Form D-400.

Article 3L replaced the historic rehabilitation tax credits generally available under Article 3D, which expired for qualified rehabilitation expenditures and rehabilitation expenses, incurred on or after January 1, 2015.  This Article expires for qualified rehabilitation expenditures and expenses incurred on or after January 1, 2015.  To claim a tax credit under Article 3L, qualified rehabilitation expenditures and expenses must be placed in service before January 1, 2028.  Article 3L tax credits are very similar to the Article 3D tax credits; however, Article 3L tax credits are capped and have a lower credit percentage.

An income-producing historic structure Article 3L – Generally, a taxpayer who is allowed a federal income tax credit under Section 47 of the Internal Revenue Code for making rehabilitation expenditures for a certified historic structure located in North Carolina is allowed a credit equal to the sum of the following:

  • 15% of expenses from $0 to $10 million
  • 10% of expenses from $10 million to $20 million

The statute provides for enhanced incentives for historic structures located in development tier one or tier two areas, and for historic structures located in a targeted investment site. For additional information, see G.S. 105-129.105. Enter the amount from Line 17 of Form NC-Rehab, on Part 2, on Line 12 of Form D-400TC.

A nonincome-producing historic structure Article 3L – Generally, a taxpayer who is not allowed a federal income tax credit under Section 47 of the Internal Revenue Code and who has rehabilitation expenses of at least $10,000 for a North Carolina certified historic structure located in North Carolina is allowed a credit equal to 15% of the rehabilitation expenses. For additional information, see G.S. 105-129.106. Enter the amount from Line 20 of Form NC-Rehab, Part 2 on Line 13 of Form D-400TC.