Internal Revenue Bulletin:  2006-16 

April 17, 2006 

INCOME TAX


Table of Contents

Notice 2006-38 Notice 2006-38

This notice provides relief for persons who have rehabilitation credit property in areas affected by Hurricanes Katrina, Rita, or Wilma. First, the notice provides a safe harbor period of three years for repair of rehabilitation credit property placed in service prior to the hurricanes and damaged by the hurricanes during which time the property is not subject to rehabilitation credit recapture under Code section 50(a)(1) provided that repairs to the property are actively ongoing. Second, for property on which the rehabilitation had begun but has not yet been placed in service on the date that the President declared a major disaster in the area in which the property is located, the running of the 24-month or 60-month period is tolled for a period of 12 months.


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