(a) With respect to a qualified rehabilitated building which is depreciable pursuant to section 167 of the Internal Revenue Code, and which is disposed of or otherwise ceases to qualify for the retail enterprise credit prior to the end of the taxable year in which such credit is to be taken, a retail enterprise credit will be allowed for the period the property qualified for such credit. The amount of the retail enterprise credit which will be allowed is that portion of the retail enterprise credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property qualified for such credit and the denominator of which is the total number of months of useful life of the property.

(b) With respect to any recovery property to which section 168 of the Internal Revenue Code applies which is a qualified rehabilitated building, and which is disposed of or otherwise ceases to qualify for the retail enterprise credit prior to the end of the taxable year in which such credit is to be taken, a retail enterprise credit will be allowed for the period the property qualified for such credit. The amount of the retail enterprise credit which will be allowed is that portion of the retail enterprise credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property qualified for such credit and the denominator of which is the total number of months over which the taxpayer chooses to deduct the property under section 168 of the Internal Revenue Code.

(c) For recomputation of the retail enterprise credit on property that is disposed of or that otherwise ceases to qualify after the end of the taxable year in which such credit was taken, see paragraph (i)(2) of this section.