Iowa Administrative Code › Agency 223 - Historical Division › Chapter 48 - Historic Preservation and Cultural and Entertainment District Tax Credits › Rule 223-48.22 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
The definitions listed in rules
				223-1.2 (17A,303) and
				223-35.2 (303) shall
				apply to terms as they are used throughout this chapter. In addition, for
				purposes of this chapter, unless the context otherwise requires:
"Agreement"
means an agreement between an
				eligible taxpayer and the department concerning a qualified rehabilitation
				project as provided in Iowa Code section
				404A.3(3)
				 and rule
				223-48.32
				(404A).
"Applicant"
means an eligible taxpayer
				described in rule
				223-48.27
				(404A).
"Assessed value"
means the value of the
				eligible property on the most current property tax assessment at the time that
				the relevant application or agreement is submitted or the agreement is signed,
				as applicable.
"Barn"
means an agricultural building or
				structure, in whatever shape or design, which was originally used for the
				storage of farm products or feed or for the housing of farm animals, poultry,
				or farm equipment.
"Certificate"
means a historic preservation
				and cultural and entertainment district tax credit certificate issued pursuant
				to Iowa Code section
				404A.3(5).
"Commencement date "
means the date set forth
				in the agreement, which date shall not be later than the end of the fiscal year
				in which the agreement is entered into.
"Commercial property"
means property
				classified as commercial, industrial, railroad, utility, or multiresidential
				for property tax purposes under rules
				701-71.1
				(405,427A,428,441,499B),
				701-76.1
				(434), and
				701-77.1
				(428,433,437,438).
"Completion date "
means the date on which
				property that is the subject of a qualified rehabilitation project is placed in
				service, as that term is used in Section 47 of the Internal Revenue
				Code.
"Department"
means the department of cultural
				affairs.
"Director"
means the director of the
				department of cultural affairs.
"Eligible taxpayer"
means the fee simple owner
				of the property that is the subject of a qualified rehabilitation project, or
				another person who will qualify for the federal rehabilitation credit allowed
				under Section 47 of the Internal Revenue Code with respect to the property that
				is the subject of a qualified rehabilitation project.
"Federal rehabilitation credit"
or
"federal credit"
means the tax credit allowed under Section
				47 of the Internal Revenue Code.
"Federal standards "
means the U.S. Secretary
				of the Interior's standards for rehabilitation set forth in 36 CFR Section
				67.7.
"Government funding"
or
"funding
				originating from a government"
includes but is not limited to:
1. Any funding the applicant received from a government;
				or
2. Funding from a third party or a series of third parties
				where those funds originally came from a government or were derived from a
				government payment, grant, loan, tax credit or rebate or other government
				incentive; or
3. Funding from a third party or a series of third parties
				where those funds are derived from, secured by, or otherwise received in
				anticipation of a government payment, grant, loan, tax credit or rebate or
				other government incentive.
"Historically significant"
means a property
				that is at least one of the following:
1. Property listed on the National Register of Historic Places
				or eligible for such listing.
2. Property designated as contributing to a district listed in
				the National Register of Historic Places or eligible for such
				designation.
3. Property or district designated a local landmark by a city
				or county ordinance.
4. A barn constructed prior to 1937.
"Large project"
means a qualified
				rehabilitation project with estimated final qualified rehabilitation
				expenditures of more than $750,000.
"Noncommercial property "
means property other
				than "commercial property" as defined in this rule. "Noncommercial property"
				includes barns constructed prior to 1937.
"Nonprofit organization"
means an organization
				described in Section 501 of the Internal Revenue Code unless the exemption is
				denied under Section 501, 502, 503, or 504 of the Internal Revenue Code.
				"Nonprofit organization" does not include a governmental body, as that term is
				defined in Iowa Code section
				362.2.
"Placed in service"
means the same as used in
				Section 47 of the Internal Revenue Code.
"Program "
means the historic preservation and
				cultural and entertainment district tax credit program set forth in this
				chapter.
"Property"
means the real property that is the
				subject of a "qualified rehabilitation project" or that is the subject of an
				application to become a qualified rehabilitation project.
"Qualified rehabilitation expenditures"
or
"QREs"
means the same as defined in Section 47 of the
				Internal Revenue Code. Notwithstanding the foregoing sentence, expenditures
				incurred by an eligible taxpayer that is a nonprofit organization shall be
				considered "qualified rehabilitation expenditures" if they are any of the
				following:
1. Expenditures made for structural components, as that term is
				defined in Treasury Regulation § 1.48 -l(e)(2).
2. Expenditures made for architectural and engineering fees,
				site survey fees, legal expenses, insurance premiums, and development fees.
"Qualified rehabilitation expenditures" does not include those
				expenditures financed by federal, state, or local government grants or
				forgivable loans unless otherwise allowed under Section 47 of the Internal
				Revenue Code.
"Qualified rehabilitation expenditures" may include
				expenditures incurred prior to the date an agreement is entered into under Iowa
				Code section
				404A.3(3).
For more information, consult department of revenue 701-subrule
				42.54(2).
"Qualified rehabilitation project"
or
"project"
means a project for the rehabilitation of property
				in this state that meets all of the following criteria:
1. The property is historically significant as defined in this
				rule.
2. The property meets the federal standards as defined in this
				rule.
3. The project is a substantial rehabilitation as defined in
				this rule.
"Related entities "
means any entity owned or
				controlled in whole or in part by the applicant; any person or entity that owns
				or controls in whole or in part the applicant; or any entity owned or
				controlled in whole or in part by any current or prospective officer,
				principal, director, or owner of the applicant.
"Related persons"
means any current or
				prospective officer, principal, director, member, shareholder, partner, or
				owner of the applicant.
"Small project"
means a qualified
				rehabilitation project with estimated final qualified rehabilitation
				expenditures of $750,000 or less.
"Substantial rehabilitation "
means qualified
				rehabilitation costs that meet or exceed the following:
1. In the case of commercial property, costs totaling at least
				50 percent of the assessed value of the property, excluding the land, prior to
				the rehabilitation or at least $50,000, whichever is less; or
2. In the case of noncommercial property, costs totaling at
				least $25,000 or 25 percent of the assessed value, excluding the land, prior to
				rehabilitation, whichever is less.
"Tax credit"
or
"historic tax
				credit"
means the historic preservation and cultural and entertainment
				district tax credit established in Iowa Code chapter 404A.
This rule is intended to implement Iowa Code chapter 404A as
				amended by 2014 Iowa Acts, House File 2453.