Kentucky Administrative Regulations › Title 300 - TOURISM, ARTS AND HERITAGE CABINET › Chapter 6 - Kentucky Heritage Council › Section 300 KAR 6:011 - Historic rehabilitation tax credit certifications

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				171.396,
				171.3961,
				171.3963,
				171.397,
				42 U.S.C.
				12101,
				54 U.S.C.
				300101,
				36 C.F.R.
				67,
				36 C.F.R.
				800,
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				171.397(12) and (14)
				authorize 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 through
			 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) "Complete and adequately documented"
			 means the applicant has provided all elements established in the Part 1, 2, 3
			 or KHC Form TC-4, fee payment, adequate photo documentation prior to
			 rehabilitation and documentation of any subsequent changes by current owner,
			 photo key, maps, and related architectural renderings or construction
			 documents.
(7) "Completed
			 rehabilitation project" means any certified historic structure that 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.
(8) "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 in which 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.
(9) "Department"
			 means the Kentucky Department of Revenue.
(10) "Director" means the executive director
			 of the Kentucky Heritage Council.
(11) "Disqualifying work" is defined by
			 KRS
			 171.396(5).
(12) "Exempt entity" is defined by
			 KRS
			 171.396(6).
(13) "File" or "filed" means physical receipt
			 by the council of an application for certification along with the tender of the
			 appropriate review fee.
(14) "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
			 171.3961 or
			 KRS
			 171.397, whichever is applicable, upon filing
			 of the Certificate of Rehabilitation-Part 3 and upon approval by the
			 council.
(15) "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.
(16) "Meaningful consultation" means the
			 opportunity to consult with a historic building owner prior to the removal of
			 historic fabric or work that does not meet the Secretary of the Interior's
			 Standards for Rehabilitation as established in Section 4(2) of this
			 administrative regulation.
(17)
			 "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,
			 54 U.S.C.
			 300101, and implemented through 36 C.F.R.
			 Part 800.
(18) "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.
(19)
			 "Owner-occupied residential property" is defined by
			 KRS
			 171.396(8).
(20) "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 April 29 of the year in which the
			 Certificate of Rehabilitation-Parts 1 and 2 are filed and approved by the
			 council.
(21) "Property" means a
			 building and its site and landscape features.
(22) "Qualified rehabilitation expense" is
			 defined by KRS
			 171.396(9).
(23) "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 that are
			 significant to its historic, architectural, or cultural values.
(24) "Rehabilitation plan" means a plan
			 pursuant to which a certified historic structure will be substantially
			 rehabilitated.
(25) "Rehabilitation
			 project" means any certified historic structure, submitted by the applicant to
			 the council, for certifications of rehabilitation under the Act.
(26) "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.
(27) "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.
(28) "Substantial rehabilitation" is defined
			 by KRS
			 171.396(10).
(29) "Taxpayer" is defined by
			 KRS
			 171.396(11).