### Question
How is the term qualified rehabilitation expenditure defined?


### Answer
The term **qualified rehabilitation expenditure** is defined in *26 U.S.C. § 47* as the following:

> any amount properly chargeable to capital account—


(i) for property for which depreciation is allowable under section 168 and which is—


(I) nonresidential real property,


(II) residential rental property,


(III) real property which has a class life of more than 12.5 years, or


(IV) an addition or improvement to property described in subclause (I), (II), or (III), and


  

(ii) in connection with the rehabilitation of a qualified rehabilitated building

#### Citation:
  - *26 U.S.C. § 47*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart E-Rules for Computing Investment Credit**

