Kentucky Administrative Regulations › Title 300 - TOURISM, ARTS AND HERITAGE CABINET › Chapter 6 - Kentucky Heritage Council › Section 300 KAR 6:010 - Historic rehabilitation tax credit certifications

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				171.396,
				171.3961,
				171.397,
				16
				U.S.C. 470a(a)(1), 36 C.F.R.
				60, 67,
				42 U.S.C.
				12101
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				171.397(12) and (14)
				authorizes the Kentucky Heritage Council to promulgate administrative
				regulations to implement the certified historic structures rehabilitation tax
				credit and to impose fees for tax credit applications. This administrative
				regulation establishes the application process to determine a taxpayer's
				eligibility to claim a certified historic structure rehabilitation tax
				credit.
Section 1. Definitions.
(1) "Act" means the enabling legislation for
			 the historic rehabilitation tax credit,
			 KRS
			 171.396 to
			 171.397.
(2) "Adjusted basis of the structure" means
			 the purchase price of the property, minus the cost of land, plus improvements
			 already made, minus allowable depreciation.
(3) "Certified historic structure" is defined
			 by
			 KRS
			 171.396(1).
(4) "Certified rehabilitation" is defined by
			 KRS
			 171.396(2).
(5) "Certified rehabilitation credit cap" is
			 defined by
			 KRS
			 171.396(3).
(6) "Completed rehabilitation project" means
			 any certified historic structure which has been substantially rehabilitated
			 and, after the completion date, has been submitted by the applicant to the
			 council for final certification of rehabilitation under the Act.
(7) "Completion date" means:
(a) For owner-occupied residential property,
			 the month, date, and year in which the last eligible rehabilitation expense is
			 incurred; or
(b) For all other
			 property, the month, date, and year when the rehabilitation project is
			 completed to allow occupancy of the entire building or some identifiable
			 portion of the building and, if applicable, a certificate of occupancy has been
			 issued.
(8) "Department"
			 means the Kentucky Department of Revenue.
(9) "Director" means the executive director
			 of the Kentucky Heritage Council.
(10) "Disqualifying work" is defined by
			 KRS
			 171.396(5).
(11) "Exempt entity" is defined by
			 KRS
			 171.396(6).
(12) "File" or "filed" means physical receipt
			 by the council of an application for certification along with the tender of the
			 appropriate review fee.
(13) "Final
			 amount of credit approved" means the individual credit awarded for certified
			 rehabilitation to an owner of a certified historic structure as determined
			 pursuant to
			 KRS
			 171.397 or
			 KRS
			 171.3961, whichever is applicable, when the
			 Certificate of Rehabilitation-Part 3 is filed and approved by the
			 council.
(14) "Inspection" means a
			 visit by the director or an authorized representative of the council to a
			 property for the purposes of reviewing and evaluating the significance of the
			 structure and the ongoing or completed rehabilitation work.
(15) "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 that the U. S. Secretary of the Interior is authorized to expand
			 and maintain pursuant to Section 101(a)(1) of the National Historic
			 Preservation Act of 1966,
			 16
			 U.S.C. 470a(a)(1), and
			 implemented through 36 C.F.R. Part 60 .
(16) "Owner" means:
(a) The person, partnership, corporation,
			 public agency, or other entity holding a fee simple interest in a property, or
			 any other person or entity recognized by the department for purposes of the
			 applicable tax benefit under
			 KRS
			 171.397 or
			 KRS
			 171.3961, whichever is applicable;
			 or
(b) A lessee, if the remaining
			 term of the lease is not less than twenty-seven and one-half (27 1/2) years for
			 residential property or thirty-nine (39) years for all other
			 property.
(17)
			 "Owner-occupied residential property" is defined by
			 KRS
			 171.396(8).
(18) "Preliminary tax credit allocation"
			 means the maximum individual credit available for certified rehabilitation to
			 an owner of a certified historic structure as determined pursuant to
			 KRS
			 171.397, on June 30 of the year in which the
			 Certificate of Rehabilitation-Parts 1 and 2 are filed and approved by the
			 council.
(19) "Property" means a
			 building and its site and landscape features.
(20) "Qualified rehabilitation expense" is
			 defined by
			 KRS
			 171.396(9).
(21) "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 as determined
			 by the director.
(22)
			 "Rehabilitation plan" means a plan pursuant to which a certified historic
			 structure will be substantially rehabilitated.
(23) "Rehabilitation project" means any
			 certified historic structure, submitted by the applicant to the council, for
			 certifications of rehabilitation under the Act.
(24) "Standards for rehabilitation" mean the
			 Secretary of the Interior's Standards for Rehabilitation,
			 36 C.F.R.
			 67.7, as established by the U. S. Department
			 of Interior and restated in Section 4(2) of this administrative
			 regulation.
(25) "Starting date"
			 means the date upon which the applicant applies for the building permit for
			 work proposed by the rehabilitation plan or the date upon which actual physical
			 work contemplated by the plan of rehabilitation begins.
(26) "Substantial rehabilitation" is defined
			 by
			 KRS
			 171.396(10).
(27) "Taxpayer" is defined by
			 KRS
			 171.396(11).