Compilation of Rules and Regulations of the State of Georgia › Department 110 - RULES OF GEORGIA DEPARTMENT OF COMMUNITY AFFAIRS › Chapter 110-37 - HISTORIC PRESERVATION › Subject 110-37-6 - GEORGIA STATE INCOME TAX CREDIT PROGRAM FOR REHABILITATED HISTORIC PROPERTY › Rule 110-37-6-.01 - Definitions

Current through Rules and Regulations filed through June 27, 2024
For the purpose of this chapter, the following definitions
				  shall apply:
(a) "Certified
				rehabilitation" as defined in O.C.G.A. Sec.
				48-7-29.8 means "repairs or
				alterations to a certified structure which are certified by the Department as
				meeting the United States Secretary of Interior's Standards for Rehabilitation
				or the Georgia Standards for Rehabilitation" as provided in this
				chapter.
(b) "Certified structure"
				as defined in O.C.G.A. Sec.
				48-7-29.8 means "a historic
				building or structure that is located within a national historic district,
				individually listed in the National Register of Historic Places, individually
				listed in the Georgia Register of Historic Places, or is certified by the
				Department as contributing to the historic significance of a Georgia Register
				Historic District."
(c)
				"Department" means the Department of Community Affairs.
(d) "Division" means the Historic
				Preservation Division of the Department of Community Affairs.
(e) "Final certification" means approval of a
				completed rehabilitation associated with review of a Rehabilitated Historic
				Property Application Form Part B and which meets the requirements of a
				certified rehabilitation.
(f)
				"Functionally related historically" means a group of buildings and/or
				structures judged by the Department to have been directly associated to serve
				an overall purpose or share an associative relationship within a designated or
				identifiable historic or operational period. Buildings and/or structures that
				are functionally related historically may or may not exhibit the same or
				similar functions, but will exhibit usages that are related within their
				historic contexts.
(g) "Georgia
				Register of Historic Places" or "Georgia Register" means the Georgia Register
				of districts, sites, buildings, structures, and objects significant in Georgia
				history, architecture, engineering, and culture. For the purposes of this
				chapter, reference to the Georgia Register shall also denote reference to the
				National Register of Historic Places.
(h) "Georgia State Income Tax Credit Program
				for Rehabilitated Historic Property" means the program established by O.C.G.A.
				Sec. 48-7-29.8.
(i) "Historic building" or "historic
				structure" means a building or structure that is listed individually in the
				Georgia Register, oris located within a Georgia Register listed historic
				district and is certified by the Department, at the time of Rehabilitated
				Historic Property Application Form Part A evaluation, as contributing to the
				historic significance of that district. For purposes of the chapter, reference
				to "property" shall be interchangeable with historic building and historic
				structure where applicable within the context of a rule.
(j) "Historic District" means a
				geographically definable area, urban or rural, that possesses a significant
				concentration, linkage or continuity of sites, buildings, structures, or
				objects united by past events or aesthetically by plan or physical development.
				A district may also comprise individual elements separated geographically but
				linked by association or history.
(k) "Historic Home" as defined in O.C.G.A.
				Sec. 48-7-29.8 means "a certified
				structure which, or any portion of which is or will, within a reasonable
				period, be owned and used as the principal residence of the person claiming the
				tax credit allowed under O.C.G.A. Sec.
				48-7-29.8. Historic home shall
				include any structure or group of structures that constitute a multifamily or
				multipurpose structure, including a cooperative or condominium. If only a
				portion of a building is used as such person's principal residence, only those
				qualified rehabilitation expenditures that are properly allocable to such
				portion shall be deemed to be made to a historic home."
(l) "Internal Revenue Code of 1986" is
				defined in O.C.G.A. Sec.
				48-1-2.
(m) "National historic district" means a
				historic district that is listed in the National Register of Historic
				Places.
(n) "Net Profit of the
				Sale" means the gain upon the sale determined based upon the Internal Revenue
				Code of 1986 with any adjustments required by Chapter 7 of Title 48 of the
				O.C.G.A. In the event the gain is deferred and or exempted based on provisions
				of the Internal Revenue Code of 1986, the deferral and or exemption shall be
				disregarded in determining the net profit of the sale.
(o) "Potential historic district" means a
				historic district that appears to meet Georgia Register criteria and possesses
				historic integrity based on current information, and for which listing in the
				Georgia Register is imminent.
(p)
				"Preliminary certification" means approval of a proposed rehabilitation, with
				conditions as applicable, associated with review of a Rehabilitated Historic
				Property Application Form Part A.
(q) "Principal residence" means the principal
				domicile of the taxpayer and not a secondary residence of the
				taxpayer.
(r) "Qualified
				rehabilitation expenditure" as defined in O.C.G.A. Sec.
				48-7-29.8 means "qualified
				rehabilitation expenditure as defined by Section 47(c)(2) of the Internal
				Revenue Code of 1986 and any amount properly chargeable to a capital account
				expended in the substantial rehabilitation of a structure that by the end of
				the taxable year in which the certified rehabilitation is completed is a
				certified structure. This term does not include the cost of acquisition of the
				certified structure, the cost attributable to enlargement or additions to an
				existing building, site preparation, or personal property." For purposes of
				this chapter, for a historic home qualified rehabilitation expenditures shall
				include expenditure types defined by Section 47(c)(2) of the Internal Revenue
				Code of 1986 and allowed by Internal Revenue Service Regulation 1.48-12.
				Expenditures directly associated with the rehabilitation not incurred by the
				owner of the certified structure are not considered qualified rehabilitation
				expenditures.
(s) "Reasonable
				period" means a period not to exceed six months following the completion of the
				certified rehabilitation.
(t)
				"Receiving the Credit" means the last day of the taxable year in which the
				certified rehabilitation is completed.
(u) "Rehabilitated Historic Property" means
				property that qualifies for the credit provided by O.C.G.A. Sec.
				48-7-29.8.
(v) "Rehabilitation" means the process of
				returning or bringing a building or buildings to a state of utility, through
				repair or alteration, which makes possible an efficient contemporary use while
				preserving those portions and features of the building(s) which are significant
				to its historic, architectural and cultural values. Repairs or alterations
				exclusively or principally associated with additions, updating kitchens and/or
				bathrooms, cosmetic finish treatments, or replacing building components at the
				end of their expected service life are not rehabilitations within the meaning
				of this definition.
(w) "Standards
				for Rehabilitation" or "Standards" means the United States Department of
				Interior's Standards for Rehabilitation provided by 36 CFR Part 67.7 or the
				Georgia Standards for Rehabilitation provided by Department of Community
				Affairs' rules.
(x) "State Historic
				Preservation Officer" (SHPO) means the official designated by the Governor of
				Georgia to administer the state's historic preservation program under the
				National Historic Preservation Act and O.C.G.A. Sec.
				12-3-50.1(c)(13).
				SHPO may also refer to the agency that carries out the functions of the State
				Historic Preservation Officer, which for Georgia is the Historic Preservation
				Division of the Georgia Department of Community Affairs.
(y) "Substantial rehabilitation" as defined
				in O.C.G.A. Sec.
				48-7-29.8 means "rehabilitation of
				a certified structure for which the qualified rehabilitation expenditures, at
				least 5 percent of which must be allocable to the exterior during the 24 month
				period selected by the owner ending with or within the taxable year, exceed:
(A) For a historic home, the lesser of
				$25,000 or 50 percent of the adjusted basis of the property at the beginning of
				the 24 month period as defined in subparagraph (a)(1)(B) of O.C.G.A. Sec.
				48-5-7.2, which is the fair market
				value as determined by the county tax assessor; or, in the case of a historic
				home located in a target area, $5,000; or
(B) For any other certified structure, the
				greater of $5,000 or the adjusted basis of the property at the beginning of the
				24 month period."
(C) For purposes
				of this chapter, substantial rehabilitation and substantially rehabilitated may
				also generally refer to project costs as meeting minimum expenditure
				requirements as defined in O.C.G.A. Sec.
				48-7-29.8 and as provided in this
				chapter.