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2.302 -Accelerated Depreciation for Rehabilitation of Low-Income Housing

Item	Description	FY2010	FY2011	FY2012
2.302	Accelerated Depreciation for Rehabilitation of Low-Income Housing Expenditures made for the rehabilitation of low-income rental housing may be depreciated over a five-year period, using the straight-line method of depreciation and ignoring salvage value, if the expenditures are made under a binding contract in existence before 1987. Generally, the aggregate expenditures qualifying for the deduction cannot exceed $20,000 per unit, though they must equal at least $3,000 per unit over two consecutive years. Any remaining cost may be depreciated under the accelerated methods described in item 2.301. The accelerated recovery of costs which otherwise would be depreciable over a longer period amounts to a deferral of tax or an interest-free loan. Origin: IRC, S. 167(k) Estimate: N.A.	N.A.	N.A.	N.A.

Key:

ORIGIN
IRC	Federal Internal Revenue Code (26 U.S.C.)
M.G.L.	Massachusetts General Laws
U.S.C	United States Code
ESTIMATES	All estimates are in $ millions.