Tax Deductions for Commercial Revitalization
CCV administers the allocation of Commercial Revitalization Deductions (CRD) on behalf of the City of Chicago.
The CRD enables a for-profit business that constructs or rehabilitates commercial property in a Renewal Community to deduct a portion of the costs of acquisition and rehabilitation over a shorter period of time than allowed under the standard depreciation rules. The amount of the deduction is based on ‘qualifying revitalization expenditures' (QREs).
A business can elect either a deduction of 50% of such QREs for any one project in the year the building is placed into service or can deduct 100% of QREs pro rated over ten years.
For more detailed information on CRDs please refer to pages 47-61 of the Tax Incentive Guide for Businesses in the Renewal Communities published by the U.S. Department of Housing and Urban Development.
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