The IRS has issued additional relief in satisfying the substantial rehabilitation test to lessen the burden on taxpayers claiming the rehabilitation credit during the COVID-19 pandemic.
Under Notice 2020-58, projects must satisfy the “substantial rehabilitation test” within a 24- or 60-month period for determining whether the rehabilitation work is sufficient to qualify a building for the rehabilitation credit.
Taxpayers who have a measuring period under the substantial rehabilitation test ending on or after April 1, 2020, and before March 31, 2021, now have until March 31, 2021, to satisfy the test. Learn more.