Alabama Administrative Code › Title 460 - ALABAMA HISTORICAL COMMISSION › Chapter 460-X-23 - ALABAMA HISTORIC REHABILITATION TAX CREDIT › Section 460-X-23-.02 - Definitions

Current through Register Vol. 42, No. 9, June 28, 2024
(a) Act. Act
			 2013-241 of the Alabama legislature and its amendments and successor
			 legislation.
(b) Aggregate Tax
			 Credit Allocation Amount. The cumulative limit on tax credit allocations as set
			 forth in the Act per calendar year. As of October 1, 2013, the aggregate amount
			 shall be twenty million dollars ($20,000,000) per year.
(c) Applicant. For the purpose of this
			 Program, the Applicant shall be the Owner of the Qualified Structure for which
			 tax credits are being applied.
(d)
			 Application. The Application shall consist of three parts: Part A: Evaluation
			 of Significance, to be used by the Commission for making a determination
			 whether a building is a Certified Historic Structure, a Certified Historic
			 Residential Structure, or a Qualified Non-historic Structure; Part B:
			 Description of Rehabilitation, to be used by the Commission for reviewing
			 proposed Projects for compliance with the Secretary of the Interior's Standards
			 (Standards); and Part C: Request for Certification of Completed Work, to be
			 used by the Commission for reviewing completed Projects for compliance with the
			 work approved under Part B. The Commission staff will develop the Application
			 and may modify it as needed over time. All required forms, including
			 Applications, Part A, B, C and amendment forms, are available from the
			 Commission at no cost.
(e)
			 Certified Historic Structure. A building located in Alabama that is certified
			 by the Commission as being individually listed in the National Register,
			 eligible for listing in the National Register, or certified by the Commission
			 as contributing to the significance of a Registered Historic District. For the
			 purpose of this Program, the term "structure" means a building or any edifice
			 enclosing a space within its walls, and usually covered by a roof, the purpose
			 of which is principally to shelter any form of human activity, such as shelter
			 or housing, or to provide working, office, parking, display, or sales space.
			 The term includes, among other examples, banks, office buildings, factories,
			 warehouses, barns, railway or bus stations, and stores and may also be used to
			 refer to a historically and functionally related unit, such as a courthouse and
			 jail or a house and barn. Functional constructions made usually for purposes
			 other than creating human shelter or activity, such as bridges, windmills, and
			 towers, are not eligible to be Certified Historic Structures under this
			 definition.
(f) Certified Historic
			 Residential Structure. A Certified Historic Structure located in Alabama which
			 is or will be used as a single family, owner occupied residential structure,
			 either free standing or supported by party walls, but not to include individual
			 units within a multi-residential structure such as a condominium or
			 cooperative.
(g) Certified
			 Rehabilitation. Repairs or alterations to a Certified Historic Structure or a
			 Certified Historic Residential Structure that is certified by the Commission as
			 meeting the Standards, and to Qualified Non-historic Structures that are
			 certified by the Commission as meeting the Standards and the following
			 requirements during rehabilitation: at least fifty percent (50%) of the
			 existing external walls shall remain in place as external walls, at least
			 seventy-five percent (75%) of the existing external walls shall remain in place
			 as either external or internal walls, and at least seventy-five percent (75%)
			 of the internal structural framework shall remain in place.
(h) Commencement of Rehabilitation. The date
			 on which actual physical work contemplated by the Rehabilitation Plan submitted
			 with the Application will begin. The Applicant shall incur no less than 20
			 percent of the estimated costs of rehabilitation described in the Application
			 within eighteen (18) months of receiving a Tax Credit Allocation
			 Reservation.
(i) Commission. The
			 Executive Director and staff of the Alabama Historical Commission, a state
			 agency, and or any successor to the Alabama Historical Commission. For the
			 purpose of notifications or filing of any Applications or other correspondence,
			 delivery shall be made to: Alabama Historic Rehabilitation Tax Credit Program,
			 Alabama Historical Commission, 468 South Perry Street, Montgomery, Alabama
			 36130-0900 (U.S. Mail) or 36104 (courier delivery).
(j) Complete Application. Submission of
			 completely filled out Parts A and B of the Application that are signed and
			 dated by the Applicant and accompanied by photographs and site plan(s), floor
			 plan(s), and elevation drawings and any other supporting exhibits necessary to
			 accurately convey to the Commission the scope of all work that is proposed to
			 the building. The Commission shall also make a determination that the building
			 is a Certified Historic Structure, a Certified Historic Residential Structure,
			 or a Qualified Non-historic Structure before the Application is considered to
			 be complete.
(k) Condition of
			 Information. A qualifier for the approval of proposed work based on the
			 Commission staff's review of an Application where the staff determines that
			 additional information is needed on certain aspects of the rehabilitation
			 Project before a determination can be made to approve or deny the
			 Application.
(l) Condition of Work.
			 A qualifier for the approval of proposed work based on the Commission staff's
			 review of an Application where the staff determines that certain aspects of the
			 proposed rehabilitation Project shall be modified or deleted before a
			 determination can be made to approve the Application.
(m) Department. The Alabama Department of
			 Revenue.
(n) National Register. The
			 National Register of Historic Places, which is the official list of the
			 nation's historic places worthy of preservation authorized by the National
			 Historic Preservation Act of 1966 and administered by the National Park
			 Service, a bureau of the U.S. Department of the Interior.
(o) Owner. A taxpayer filing a State of
			 Alabama tax return or any entity that is exempt from federal income taxation
			 pursuant to Section 501(c) of the Internal Revenue Code, as amended, that owns
			 title to a Qualified Structure or owns a leasehold interest in a Qualified
			 Structure for a term of not less than 39 years.
(p) Project. A Project includes all work to a
			 Property for which rehabilitation tax credits are sought, the scope of which is
			 fully described in an Application Part B and a Rehabilitation Plan. For the
			 purpose of these Regulations, all work completed on a building in addition to
			 all work to a Property for which rehabilitation tax credits are sought is
			 subject to review for compliance with the Standards during the period beginning
			 six (6) months before the Application is submitted and continuing through the
			 end of the recapture period for any tax credits used.
(q) Program. The Alabama Historic
			 Rehabilitation Tax Credit Program as authorized by the Act and described in
			 these regulations.
(r) Property. A
			 Qualified Structure located in Alabama and its site and landscape
			 features.
(s) Qualified
			 Rehabilitation Expenditures. Any expenditure as defined under Section
			 47(c)(2)(A) of the Internal Revenue Code, as amended, and the related
			 regulations thereunder, and other reasonable expenses and costs expended in the
			 rehabilitation of a Qualified Structure. For Certified Historic Residential
			 Structures, this term shall mean expenses incurred by the taxpayer in the
			 Certified Rehabilitation of a Certified Historic Residential Structure,
			 including: preservation and rehabilitation work done to the exterior of a
			 Certified Historic Residential Structure; repair and stabilization of historic
			 structural systems; restoration of historic plaster; energy efficiency measures
			 except insulation in frame walls; repairs or rehabilitation of heating, air
			 conditioning, or ventilation systems; repairs or rehabilitation of electrical
			 or plumbing systems exclusive of new electrical appliances and electrical or
			 plumbing fixtures; and architectural, engineering, and land surveying fees.
			 Qualified rehabilitation expenditures do not include the cost of acquisition of
			 the Qualified Structure, the personal labor by the Applicant, enlargement of
			 the Qualified Structure, or any cost associated with the rehabilitation of an
			 outbuilding of the Qualified Structure, unless the outbuilding is certified by
			 the Commission to contribute to the historical significance of the Qualified
			 Structure.
(t) Qualified
			 Non-historic Structure. A non-historic building located in Alabama built before
			 1936 that is certified by the Commission as not meeting the eligibility
			 requirements as a Certified Historic Structure or a Certified Historic
			 Residential Structure and that is certified by the Commission as meeting the
			 requirements contained in Section 47(c)(1)(a) and (b) of the Internal Revenue
			 Code, as amended. For the purposes of these regulations, non-historic
			 structures built before 1936 shall not include residential buildings.
(u) Qualified Structure. Certified Historic
			 Structures; Certified Historic Residential Structures; and Qualified
			 Non-historic Structures.
(v)
			 Rehabilitation. Rehabilitation means the process of returning a building or
			 buildings to a state of enhanced utility, through repair or alteration, which
			 makes possible an efficient use while preserving those portions and features of
			 the building and its site and environment which are significant as defined by
			 Part A of the Application approved by the Commission.
(w) Rehabilitation Plan. Descriptions,
			 construction plans, and specifications for the proposed rehabilitation of a
			 Qualified Structure in sufficient detail to enable the Commission to evaluate
			 compliance with the Standards.
(x)
			 Registered Historic District. Any district listed in the National Register or
			 any district which is: a) designated under Alabama or local law certified by
			 the U.S. Secretary of the Interior as containing criteria which substantially
			 achieves the purpose of preserving and rehabilitating buildings of historic
			 significance to the district; or b) certified by the U.S. Secretary of the
			 Interior as meeting substantially all of the requirements for the listing of
			 districts in the National Register of Historic Places.
(y) Request for a Tax Credit Allocation
			 Reservation. The submittal of Parts A and B of the Application for a Qualified
			 Structure.
(z) Reservation
			 Priority List. A list prepared and maintained by the Commission of the order in
			 which completed Applications are received for review and reviewed.
(aa) Standards. The Secretary of the
			 Interior's Standards for Rehabilitation as defined by Title 36 Code of Federal
			 Regulations (CFR) Part 67.7.
(bb)
			 Substantial Rehabilitation. Rehabilitation of a Qualified Structure for which
			 the qualified rehabilitation expenditures exceed 50 percent of the Owner's
			 original purchase price of the Qualified Structure or twenty-five thousand
			 dollars ($25,000), whichever is greater. For the purpose of these regulations,
			 the Owner's original purchase price of the Qualified Structure shall mean the
			 original purchase price of the Property minus the value of the underlying land
			 and any buildings other than the Qualified Structure for which rehabilitation
			 tax credits are being applied.
(cc)
			 Tax Credit Allocation. The dollar amount of tax credits apportioned for the
			 substantial rehabilitation of a Qualified Structure based on a Rehabilitation
			 Plan approved by the Commission.
(dd) Tax Credit Allocation Reservation. The
			 reservation of a tax credit allocation issued by the Commission via a written
			 form or letter for a Project for which a complete Part A and B of the
			 Application has been submitted, which entitles the owner to a tax credit
			 provided that the owner complies with all of the requirements of the Act for
			 the issuance of a Tax Credit Certificate. For the purpose of the definition,
			 Part A of the Application shall also have been reviewed and a determination
			 made by the Commission that the building is a Certified Historic Structure, a
			 Certified Historic Residential Structure, or a Qualified Non-historic
			 Structure.
(ee) Tax Credit
			 Certificate. A certificate issued by the Commission via a written form or
			 letter to the Applicant providing information about the Project and the amount
			 of its Tax Credit Allocation to be filed with the Applicant's Alabama state tax
			 return. If there are multiple owners of a property, or if the owner is a
			 partnership or limited liability company, the Tax Credit Certificate will
			 contain a section to be completed by the Owner that provides the percentage or
			 amount of credit that will be allocated to each partner, member or owner, and
			 such completed Certificate may be provided to the department to transfer all or
			 any portion of the tax credits passed through to the partner, member, or owner
			 in accordance with
			 460-X-23-.03(6).
			 A copy of the completed Certificate shall be filed with the partner's,
			 member's, or owner's respective Alabama tax return. The aggregate credits
			 claimed by the partners, members, or owners may not exceed the total amount of
			 the credit set forth in the Applicant's Tax Credit Certificate.
Authors
: Chloe Mercer, David Schneider, Jennifer
				  Bailey
Statutory Authority
: Act 2013-241; Act
				  2014-452.