Tax Deductions for Commercial Revitalization

CCV administers the allocation of Commercial Revitalization Deductions (CRD) on behalf of the City of Chicago. These CRDs have been designated to expire as of the end of 2009.

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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