It depends on the conditions in the rehab facility. Per this memo, here is how the IRS defines a halfway house:
With respect to individuals transferred to a halfway house, those individuals have not been released from their sentences, can be returned to the prison facility, and are usually required to perform services. Although these individuals are not confined to a prison, jail, or penitentiary, they are confined to the halfway house for the remainder of their sentence. Thus, a halfway house falls within the general definition of a penal institution.
I wish you the best of luck.
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