IRS Issues Guidance for Retroactive Application of Incentives to Expanded Renewal Communities

摘要

The Internal Revenue Service has outlined procedures for the retroactive application of tax incentives, including commercial revitalization expenditures, for HUD-approved expanded areas of renewal communities. The guidance was provided in Rev. Proc. 2006-16, issued on February 1 and scheduled for publication in the February 27 Internal Revenue Bulletin. The Community Renewal Tax Relief Act of 2000 provided for HUD designation of renewal communities, which would be eligible for certain tax incentives, including a reduction for commercial revitalization expenditures, increased Section 179 expensing, and a capital gains tax exclusion on the sale of qualified assets held for more than five years.