Arkansas Administrative Code › Agency 233 - Department of Parks, Heritage, and Tourism › Division 04 - Division of Heritage › Rule 233.04.19-002 - Rules Governing The Arkansas Major Historic Rehabiliation Income Tax Credit Act

Current through Register Vol. 49, No. 6, June, 2024
ARKANSAS DEPARTMENT OF PARKS, HERITAGE AND
				TOURISM DIVISION OF ARKANSAS HERITAGE ARKANSAS HISTORIC PRESERVATION
				PROGRAM
RULES GOVERNING THE ARKANSAS MAJOR HISTORIC
				REHABILITATION INCOME TAX CREDIT ACT
I.
PURPOSE
Pursuant to Arkansas Laws Act 855 of 2019, the Division of
				Arkansas Heritage through its Arkansas Historic Preservation Program hereby
				establishes these rules governing the three part application process for which
				the Owner of a historic Arkansas property may apply for an income tax credit
				under The Arkansas Major Historic Rehabilitation Income Tax Credit Act.
II.
ENABLING
			 LEGISLATION
Arkansas Code Annotated $ 19-5-1150 (Act 855 of 2019) created
				on the books of the Treasurer of State, the Auditor of State, and the Chief
				Fiscal Officer of the State, a trust fund known as the "Arkansas Major Historic
				Rehabilitation Trust Fund".
Arkansas Code Annotated $ 26-51-2601
et seq.
(Act 855 of 2019), the "Arkansas Major Historic Rehabilitation Income Tax
				Credit Act", allows a credit against the Arkansas Income Tax Act of 1929, Ark.
				Coe Ann. $$
				26-51-101 -
				26-51-2510 and the Insurance
				Premium Tax levied under $$
				26-57-603 -
				26-57-605;
III.
DEFINITIONS
"Act"
means Ark. Acts, No. 855 as codified at
				Arkansas Code Annotated $ 19-5-1150 and at $ 26-51-2601
et
				seq.,
as such may be amended from time to time.
"AHPP"
means the Arkansas Historic Preservation
				Program, an agency of the Division of Arkansas Heritage ("DAH") under the
				Arkansas Department of Parks, Heritage & Tourism.
"Application"
means the Arkansas Major Historic
				Rehabilitation Tax Credit Application that constitutes a written plan for
				development and operation of a Rehabilitation project. Applications are
				submitted in three parts:
1.
			 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.
2. Proposed
			 Rehabilitation Project (Part 2) is used by AHPP to determine whether a proposed
			 Rehabilitation project will comply with the
Secretary of the Interior's
			 Standards for the Treatment of Historic Properties with Guidelines for
			 Preserving, Rehabilitating, Restoring & Reconstructing Historic
			 Buildings
(as used herein, the
"Secretary's
			 Standards").
See
https://www.nps.gov/tps/standards/treatment-guidelines-2017.pdf
3. Completed Rehabilitation Project (Part 3)
			 is used by AHPP to determine whether a completed Rehabilitation project
			 successfully complied with the
Secretary's Standards.
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.
''Arkansas Major Historic Rehabilitation Income Tax
				Credit"
means the income tax credit allowed under this subchapter
				against the income tax imposed by this chapter and the Premium Tax levied under
				$$ 26-57-601 -
				26-57-605;
"Certification of Completion"
means a certificate
				issued by the Division of Arkansas Heritage certifying that a project is a
				Certified Rehabilitation of an Eligible Property that qualifies for the
				Arkansas Major Historic Rehabilitation Income Tax Credit;
"Certified Rehabilitation"
means the total of
				appropriate and approved Rehabilitation work on an Eligible Property that
				results in a substantial rehabilitation of an Eligible Property that has been
				issued an eligibility certificate.
"Eligible Property"
means property that is located
				in the state that:
(A) Qualifies as a
			 certified historic structure under 26 U.S.C. $ 47, as it existed on January 1,
			 2019;
(B) Will qualify as a
			 certified historic structure following Certified Rehabilitation;
(C) Is listed in the National Register of
			 Historic Places;
(D) Is designated
			 as contributing to a district listed in the National Register of Historic
			 Places; or
(E) Is eligible for
			 designation as contributing to a district listed in the National Register of
			 Historic Places following Certified Rehabilitation.
"Federal Rehabilitation Tax Credit"
means the
				federal tax credit provided under 26 U.S.C. $ 47, as it existed on January 1,
				2009;
"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
				historically or aesthetically by plan or physical development. A district may
				also comprise individual elements separated geographically during the period of
				significance but linked by association or function.
"Holder"
means the holder of a Certification of
				Completion that is:
(A) A person,
			 firm, or corporation subject to the income tax imposed by this chapter;
			 or
(B) An insurance company paying
			 the Premium Tax on its gross premium receipts;
"Income Tax Credits"
means the authorized amount
				that may be applied against Arkansas income tax or Premium Tax, whether earned
				by an individual, partnership, limited liability company, S Corporation or
				Corporation.
"National Register"
or
"National Register of
				Historic Places"
means the National Register of districts, sites,
				buildings, structures, and objects significant in American history,
				architecture, archeology, engineering, and culture pursuant to section
				101(a)(1) of the National Historic Preservation Act of 1966, as amended. (The
				procedures of the National Register appear in 36 CFR part 60
et
				seq.)
"Owner"
means a person or an entity that owns
				Eligible Property and is the initial recipient of the Certification of
				Completion from the Division of Arkansas Heritage;
"Premium Tax"
means a tax levied under Ark. Code
				Ann. $$ 26-57-603 -
				26-57-615;
"Qualified Rehabilitation Expenses"
means costs
				and expenses incurred to complete a Certified Rehabilitation that are Qualified
				Rehabilitation Expenses under the Federal Rehabilitation Tax Credit or under
				the Arkansas Major Historic Rehabilitation Income Tax Credit.
"Rehabilitation"
means the process of returning a
				building or buildings to a state of 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 to
				its historic, architectural, and cultural values.
"State Historic Preservation Officer"
(SHPO) means
				the Director of the Division of Arkansas Heritage, or other official designated
				by the Governor or statute to act as liaison for purposes of administering
				historic preservation programs within Arkansas.
"Tourism Attraction"
means cultural or historical
				site, recreational or entertainment facility, area of natural phenomenon or
				scenic beauty, theme park, amusement or entertainment park, indoor or outdoor
				play or music show, botanical gardens, or cultural or educational
				centers.