Arkansas Administrative Code › Agency 012 - Department of Arkansas Heritage › Division 02 - Historic Preservation Commission › Rule 012.02.09-002 - Arkansas Rehabilitation Income Tax Credit Program

Current through Register Vol. 49, No. 6, June, 2024
DEPARTMENT OF ARKANSAS HERITAGE ARKANSAS HISTORIC
				PRESERVATION PROGRAM
RULES GOVERNING THE ARKANSAS HISTORIC REHABILITATION
				INCOME TAX CREDIT PROGRAM
I.
PURPOSE
Arkansas's historic sites and districts provide the state with
				significant benefits in the areas of community and economic development,
				tourism, civic pride, and an overall sense of place for Arkansas. Yet Arkansas
				continues to experience significant loss of historic structures. Since the
				overwhelming majority of historic properties are held by private owners, the
				state has developed this program to encourage these owners to restore and
				rehabilitate historic structures.
II.
LEGISLATION
Arkansas Code Annotated §
									26-51-2201
et seq.
(Act 498 of 2009), the "Arkansas Historic
				Rehabilitation Income Tax Credit of 2009", allows a credit against the tax
				imposed by the Arkansas Income Tax Act of 1929, (§
									26-51-101 et
				seq.) and the premium tax levied under §§
									26-57-603 -
				26-57-605
				for any taxpayer engaged in the qualified rehabilitation of certified historic
				structures.
III.
DEFINITIONS
As used herein, unless the context otherwise requires:
Act
means the Arkansas Historic
				Rehabilitation Income Tax Credit of 2009 (A.C.A. §
									26-51-2201
et seq.).
Tax credits
means the authorized
				amount that may be applied against Arkansas personal income tax, corporate
				income tax or premium tax, whether earned by an individual, partnership,
				limited liability company, S Corporation or Corporation.
AHPP
means the Arkansas Historic
				Preservation Program ("AHPP"), an agency of the Department of Arkansas Heritage
				("DAH").
Application
means the Arkansas
				Historic Rehabilitation Tax Credit Application, and constitutes a written plan
				for development and operation of a rehabilitation project. Applications are
				submitted in three parts:
Determination of Eligibility
(Part 1)
is used by the AHPP to determine whether a property is of historic
				significance and eligible to receive tax credits. Upon approval of a Part 1,
				the AHPP will issue a
Certificate of
				Eligibility.
Proposed Rehabilitation Project
(Part 2)
is used by AHPP to determine whether a proposed rehabilitation project
				will comply with the Secretary's Standards for Rehabilitation.
Completed Rehabilitation Project
(Part
				3)
is used by AHPP to determine whether a completed rehabilitation
				project successfully complied with the Secretary's Standards for
				Rehabilitation. Upon approval of a Part 3, the AHPP will issue a
Certificate of Completion.
Holders will submit
				Certificates of Completion to the appropriate taxing authority to claim tax
				credits.
Eligible property
means property
				that is located in Arkansas that is:
A.
			 Income-producing property that:
1. Qualifies
			 as a certified historic structure under
			 26 U.S.C. §
											47, as it existed on January 1, 2009;
			 or
2. Will qualify as a certified
			 historic structure following certified rehabilitation; and