Part VII—Rehabilitation Credit Under

You are allowed a credit for qualified rehabilitation expenditures made for any qualified rehabilitated building. You must reduce your basis by the amount of the credit determined for the tax year. See Regulations section 1.47-7.

If the adjusted basis of the building is determined in whole or in part by reference to the adjusted basis of a person other than the taxpayer, see Regulations section 1.48-12(b)(2)(viii) for additional information that must be attached.

Qualified rehabilitated building. To be a qualified rehabilitated building, your building must meet all of the following requirements.

The building must be a certified historic structure. A certified historic structure is any building:

a. Listed in the National Register of Historic Places,

b. Located in a registered historic district (as

defined in section 47(c)(3)(B)) and certified by the Secretary of the Interior as being of historic significance to the district.

Certification requests are made through your State Historic Preservation Officer on National Park Service (NPS) Form 10-168, Historic Preservation Certification Application. The request for certification should be made prior to physical work beginning on the building.

The building must be substantially rehabilitated. A building is considered substantially rehabilitated if your qualified rehabilitation expenditures during a self-selected 24-month period that ends with or within your tax year are more than the greater of $5,000 or your adjusted basis in the building and its structural components. Figure adjusted basis on the first day of the 24-month period or the first day of your holding period, whichever is later. If you are rehabilitating the building in phases under a written architectural plan

and specifications that were completed before the rehabilitation began, substitute “60-month period” for “24-month period.”

Depreciation must be allowable with respect to the building. Depreciation isn’t allowable if the building is permanently retired from service. If the building is damaged, it isn’t considered permanently retired from service where the taxpayer repairs and restores the building and returns it to actual service within a reasonable period of time.
The building must have been placed in service before the beginning of rehabilitation. This requirement is met if the building was placed in service by any person at any time before the rehabilitation began.

Qualified rehabilitation expenditures. To be qualified rehabilitation expenditures, your expenditures must meet all of the following requirements.

The expenditures must be for:

a. Nonresidential real property,

b. Residential rental property (but only if a

certified historic structure; see Regulations section 1.48-1(h)), or

c. Real property that has a class life of more than

12.5 years.

The expenditures must be incurred in connection with the rehabilitation of a qualified rehabilitated building.
The expenditures must be capitalized and depreciated using the straight line method.
The expenditures can’t include the costs of acquiring or enlarging any building.
If the expenditures are in connection with the rehabilitation of a certified historic structure or a building in a registered historic district, the rehabilitation must be certified by the Secretary of the Interior as being consistent with the historic character of the property or district in which the property is located.
The expenditures can’t include any costs allocable to the part of the property that is (or may reasonably be expected to be) tax-exempt use property (as defined in section 168(h) except that “50%” shall be substituted for “35%” in paragraph (1)(B)(iii)). This exclusion doesn’t apply for line 1f.

Line 1a Check the appropriate box whether there was any charitable conservation contribution deduction under section 170(h) claimed for the property on which you are claiming a credit for a certified historic structure.

Line 1b If you checked “Yes” to line 1a, you must provide the NPS project number. The NPS project number is assigned:

By NPS to a certified historic structure;
To a building on a property that has multiple buildings which is individually listed in the National Register of

30 Instructions for Form 3468 (2025)

Historic Places referenced in section 170(h)(4)(C)(i); or

To a building that is in a historic district referenced in section 170(h)(4)(C)(ii).

If the property is a single building individually listed in the National Register of Historic Places, enter five zeros (“00000”) in the NPS project number field. For more details on the NPS project number for easements on certified historic structures, see the Instructions for Form 8283, Noncash Charitable Contributions. For more information on charitable conservation contribution deduction of certified historic structures, see Pub. 526, Charitable Contributions.

Line 1c For credit purposes, the expenditures are generally taken into account for the tax year in which the qualified rehabilitated building is placed in service. However, with certain exceptions, you may elect to take the expenditures into account for the tax year in which they were paid (or, for a self-rehabilitated building, when capitalized) if:

The normal rehabilitation period for the building is at least 2 years, and
It is reasonable to expect that the building will be a qualified rehabilitated building when placed in service.

For details, see section 47(d). To make this election, check the box on line 1c. The credit, as a percent of expenditures paid or incurred during the tax year for any qualified rehabilitated building, depends on the type of structure and its location.

Line 1j For qualified rehabilitation expenditures paid or incurred after 2017, a 20% credit is determined with respect to the qualified rehabilitation expenditures and allowed ratably over a 5-year period beginning in the tax year that the qualified rehabilitated building is placed in service.

Note: The amount reported on Line 1j represents the 4% credit. This amount is allowed ratably over a 5-year period. Do not enter the full 5-year 20% credit amount on this line.

Line 1k If you’re claiming a credit for a certified historic structure on line 1j, enter the following.

On line 1k(i), the assigned NPS project number. If a lessee, the lessor will provide the lessee with the NPS project number to enter on line 1k(i).
On line 1k(ii), the EIN of the pass-through entity if the qualified rehabilitation expenditures are from an S corporation, partnership, estate, or trust.
On line 1k(iii), the date of the final certification of completed work received from the Secretary of the Interior.

If you have more than one property that qualifies for the rehabilitation credit, attach a schedule showing the certified historic structure property, NPS number,

date of final certification, and the partnership employer identification number (EIN), if applicable.

Line 1m

Certification of completed work not received by time of filing. If the final certification hasn’t been received by the time the tax return is filed for a year in which the credit is claimed, enter the date that is 30 months after the date that the original rehabilitation credit was claimed for the property, and attach a copy of the first page of NPS Form 10-168, Historic Preservation Certification Application (Part 2—Description of Rehabilitation), with an indication that it was received by the Department of the Interior or the State Historic Preservation Officer, together with proof that the building is a certified historic structure (or that such status has been requested).

After the final certification of completed work has been received, file Form 3468 with the first income tax return filed after receipt of the certification and enter the assigned NPS project number and the date of the final certification of completed work on the appropriate lines on the form. Also, attach an explanation and indicate the amount of credit claimed in prior years.

Failure to receive final certification of completed work within 30 months. If you didn’t receive final certification of completed work prior to the date that is 30 months after the date that you filed the tax return on which the credit was claimed, you must submit, before the last day of the 30th month, a written statement to the IRS stating that fact. You will be asked to consent to an agreement under section 6501(c)(4) extending the period of assessment for any tax relating to the time for which the credit was claimed.

See IRS.gov/FilingCertainCFRs for the most current mailing address for submitting the written statement required under CFR citation 1.48-12(d)(7)(ii).

Final certification of completed work. You must retain a copy of the final certification of completed work as long as its contents may be needed for the administration of any provision of the Code.

Caution: If the final certification is denied by the Department of the Interior, the credit is disallowed for any tax year in which it was claimed, and you must file an amended return if necessary. See Regulations section 1.48-12(d)(7)(ii) for details.

Line 2 Patrons, including cooperatives that are patrons in other cooperatives, enter the unused investment credit from the rehabilitation investment credit allocated from cooperatives. If you are a cooperative, see the instructions for Form 3800, Part III, line 4k, for allocating the investment credit to your patrons.

Tip: See Cooperatives, earlier, for filing Form 3468 to report any unused credits from cooperatives.

Instructions for Form 3468 (2025) 31

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual and business taxpayers filing this form is approved under OMB control number 1545-0074 and 1545-0123 and is included in the estimates shown in the instructions for their individual and business income tax return. The estimated burden for all other taxpayers who file this form is shown below.

Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 hr., 39 min.

Learning about the law or the form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 hr., 21 min.

Preparing and sending the form to the IRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 hr., 55 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed.

32 Instructions for Form 3468 (2025)