Alabama Administrative Code › Title 460 - ALABAMA HISTORICAL COMMISSION › Chapter 460-X-25 - ALABAMA HISTORIC REHABILITATION TAX CREDIT › Section 460-X-25-.02 - Definitions

Current through Register Vol. 42, No. 9, June 28, 2024
(a) Act. Act 2017-380 and Act 2021-431 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 January 1, 2018, 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 Certified Historic Structure
			 or Certified Historic Residential Structure for which tax credits are being
			 applied.
(d) Application. The
			 Application shall consist of three parts: Part A: Evaluation of Program
			 Eligibility, to be used by the Commission for making a determination whether a
			 project meets the basic criteria for the 2017-2027 Alabama Historic
			 Rehabilitation Tax Credit Program and to determine if a building is a Certified
			 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 Standards and Rehabilitation Plan approved under Part
			 B. The Commission staff will develop the parts of the Application and may
			 modify them as needed over time. All required forms, including Parts A, B, C,
			 and Amendment Sheet, are available from the Commission at no cost.
(e) Application Period. The duration of
			 receiving Complete Applications, as provided in Rule
			 460-X-25-.12, to be considered in
			 the following Review Cycle.
(f)
			 Appraisal. An opinion of value for the Property after rehabilitation is
			 complete, prepared by a licensed real estate appraiser who is a Member of the
			 Appraisal Institute.
(g) Certified
			 Historic Structure. A building located in Alabama which is at least sixty years
			 old, unless the building is an historic building located within the boundaries
			 of a National Monument or Park as declared by the United States Congress or the
			 President of the United States, in which case the federal age provisions shall
			 apply, and 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, this term refers to a
			 structure that is not occupied by an Owner and is not used exclusively as a
			 primary or secondary residence.
(h)
			 Certified Historic Residential Structure. See definition for Certified Historic
			 Structure. For the purpose of this Program, this term refers to a structure
			 that is not occupied by an Owner and is not used exclusively as a primary or
			 secondary residence.
(i) Certified
			 Rehabilitation. Repairs or alterations to a Certified Historic Structure that
			 is certified by the Commission as meeting the Standards, which means that it is
			 consistent with the historic character of such property or the district in
			 which such property is located.
(j)
			 Commencement of Rehabilitation. Within 18 months of the date of issuance of
			 written notice of a Tax Credit Allocation Reservation, the Applicant shall
			 incur no less than 20 percent of the estimated costs of rehabilitation
			 described in the Application. Within 36 months of the date of issuance of the
			 written notice of a Tax Credit Allocation Reservation, the Applicant must have
			 incurred an additional 50 percent of the estimated costs of rehabilitation
			 provided in the application. Within 60 months of the date of issuance of the
			 written notice of a Tax Credit Allocation Reservation, the Project must be
			 completed.
(k) 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 (US Mail) or 36104 (Courier delivery).
(l) Committee. The Historic Tax Credit
			 Evaluating Committee which reviews Qualifying Projects, approves credits for
			 Projects, and ranks Projects in the order in which the projects should receive
			 tax credit reservations. Members shall consist of the following: Director of
			 the Governor's Office of Minority Affairs, Executive Director of the Alabama
			 Historical Commission, Finance Director, Director of the Alabama Department of
			 Economic and Community Affairs (ADECA), Secretary of Commerce, one Republican
			 House member, one Democrat House Member, one Republican Senator, one Democrat
			 Senator, and the Commissioner of Revenue (non-voting advisory member). The
			 Committee shall meet quarterly unless no credits remain or no Qualifying
			 Projects are recommended by the Commission.
(m) Complete Application. Submission of
			 completely filled out Parts A and B that are signed and dated by the Applicant
			 and accompanied by the Application fee, as provided in Rule
			 460-X-25-.05, photographs and
			 site plan(s), floor plan(s), 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.
(n) 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 Plan shall be modified or deleted before a determination can be
			 made to consider it a Qualifying Project.
(o) Cost and Expense Certification. Based
			 upon a complete schedule of qualified and non-qualified expenditures, grouped
			 by categories of work; a licensed and independent Certified Public Accountant
			 prepares the certification report.
(p) Department. The Alabama Department of
			 Revenue or its successor.
(q)
			 Disqualifying Use. Any use of a certified historic residential structure that
			 is occupied by an Owner and used exclusively as a primary or secondary
			 residence.
(r) 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.
(s) 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 Certified Historic Structure or owns a leasehold interest in a
			 Certified Historic Structure for a term of not less than 39 years. An Owner
			 shall not be considered a private user as defined in Section
			 40-9A-1,
Code of Ala.
			 1975
.
(t) Project. A
			 Project includes all work to a Certified Historic Structure and its site and
			 landscape features, the scope of which is fully described in a Part B and a
			 Rehabilitation Plan. For the purpose of this Program, all work completed on a
			 building and its site and landscape features 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.
(u) Program. The Alabama
			 Historic Rehabilitation Tax Credit Program as authorized by Act 2017-380 and
			 Act 2021-431 and described in these regulations.
(v) 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 Certified Historic
			 Structure. For Certified Historic Structures, this term shall mean expenses
			 incurred by the taxpayer in the Certified Rehabilitation of a Certified
			 Historic Structure, including but not limited to: preservation and
			 rehabilitation work done to the exterior of a Certified Historic 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 Certified Historic Structure, the
			 personal labor by the Applicant, enlargement of the Certified Historic
			 Structure, or any cost associated with the rehabilitation of an outbuilding of
			 the Certified Historic Structure, unless the outbuilding is certified by the
			 Commission to contribute to the historical significance of the Certified
			 Historic Structure.
(w) Qualified
			 Structure. Certified Historic Structures that have been substantially
			 rehabilitated.
(x) Qualifying
			 Project. A Certified Historic Structure with a Complete Application and a
			 Rehabilitation Plan that the Commission determines will meet the Standards,
			 either as submitted or with Conditions of Work, and is recommended to the
			 Committee for approval and ranking.
(y) Rehabilitation. 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.
(z) Rehabilitation
			 Plan. Descriptions, construction plans, and specifications for the proposed
			 rehabilitation of a Certified Historic Structure in sufficient detail to enable
			 the Commission to evaluate compliance with the Standards.
(aa) Registered Historic District. Any
			 district listed in the National Register or any district which is:
a) designated under Alabama or local law 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.