### Question
How is the "qualified rehabilitated building" defined?


### Answer
The term **qualified rehabilitated building** is defined in *26 U.S.C. § 47* as follows -

> any building (and its structural components) if—



(i) such building has been substantially rehabilitated,



(ii) such building was placed in service before the beginning of the rehabilitation,



(iii) in the case of any building other than a certified historic structure, in the rehabilitation process—



(I) 50 percent or more of the existing external walls of such building are retained in place as external walls,



(II) 75 percent or more of the existing external walls of such building are retained in place as internal or external walls, and



(III) 75 percent or more of the existing internal structural framework of such building is retained in place, and


  


(iv) depreciation (or amortization in lieu of depreciation) is allowable with respect to such 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**

