KRS § 171.396 — KY Code / Title XIV / Chapter 171 / Section 171.396
171.396 Definitions for KRS 171.396, 171.3961, and 171.397
Status: in_force

171.396 Definitions for KRS 171.396, 171.3961, and 171.397.

As used in this section and KRS 171.3961 and 171.397:

(1) "Certified historic structure" means a structure that is located within the

Commonwealth of Kentucky that is:

(a) Listed individually on the National Register of Historic Places; or

(b) Located in a historic district listed on the National Register of Historic Places

and is certified by the council as contributing to the historic significance of the

district;

(2) "Certified rehabilitation" means a completed substantial rehabilitation of a certified

historic structure that the council certifies meets the United States Secretary of the

Interior's Standards for Rehabilitation;

(3) "Certified rehabilitation credit cap" means an annual amount of:

(a) Three million dollars ($3,000,000) for applications received prior to April 30,

2010;

(b) Five million dollars ($5,000,000) for applications received on or after April

30, 2010, but before April 30, 2022; and

(c) One hundred million dollars ($100,000,000) for applications received on or

after April 30, 2022, allocated with:

1. Twenty-five percent (25%) of the credit cap awarded to owner-occupied

residential property; and

2. Seventy-five percent (75%) of the credit cap awarded to property other

than owner-occupied residential property, which includes the major

certified rehabilitation allowed under KRS 171.3963;

plus any amount added to the certified rehabilitation credit cap pursuant to KRS

171.397(2)(c);

(4) "Council" means the Kentucky Heritage Council;

(5) "Disqualifying work" means work that is performed within three (3) years of the

completion of the certified rehabilitation that, if performed as part of the

rehabilitation certified under KRS 171.397, would have made the rehabilitation

ineligible for certification;

(6) "Exempt entity" means any tax exempt organization pursuant to sec. 501(c)(3) of

the Internal Revenue Code, any political subdivision of the Commonwealth, any

state or local agency, board, or commission, or any quasi-governmental entity;

(7) "Local government" means a city, county, urban-county, charter county, or

consolidated local government;

(8) "Owner-occupied residential property" means a building or portion thereof,

condominium, or cooperative occupied by the owner as his or her principal

residence;

(9) "Qualified rehabilitation expense" means any amount that is properly chargeable to

a capital account, whether or not depreciation is allowed under Section 168 of the

Internal Revenue Code, and is expended in connection with the certified

rehabilitation of a certified historic structure. It shall include the cost of restoring

landscaping and fencing that contributes to the historic significance of this structure,

but shall not include the cost of acquisition of a certified historic structure,

enlargement of or additions to an existing building, or the purchase of personal

property;

(10) "Substantial rehabilitation" means rehabilitation of a certified historic structure for

which the qualified rehabilitation expenses, during a twenty-four (24) month period

selected by the taxpayer or exempt entity, ending with or within the taxable year,

exceed:

(a) Twenty thousand dollars ($20,000) for an owner-occupied residential

property; or

(b) For all other property, the greater of:

1. The adjusted basis of the structure; or

2. Twenty thousand dollars ($20,000);

(11) "Taxpayer" means any individual, corporation, limited liability company, business

development corporation, partnership, limited partnership, sole proprietorship,

association, joint stock company, receivership, trust, professional service

organization, or other legal entity through which business is conducted that:

(a) Elects to claim the credit on a return and receive a refund as provided in KRS

171.397(2)(b)2.a.; or

(b) Is the recipient of a credit which is transferred as provided in KRS

171.397(2)(b)2.b.; and

(12) "Qualified purchased historic home" means any substantially rehabilitated certified

historic structure if:

(a) The taxpayer claiming the credit authorized under KRS 171.397 is the first

purchaser of the structure after the date of completion of the substantial

rehabilitation;

(b) The structure or a portion thereof will be the principal residence of the

taxpayer; and

(c) No credit was allowed to the seller under this section.

A qualified purchased historic home shall be deemed owner-occupied residential

property for purposes of this section.