Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 6 - Historic Preservation Tax Credits 2013 (280-RICR-20-20-6) › Section 280-RICR-20-20-6.19 - Substantial Rehabilitation; Qualified Rehabilitation Expenditures

Current through June 14, 2024
A. Substantial Rehabilitation.
1. A Rehabilitation of Certified Historic
				 Structure shall be deemed a Substantial Rehabilitation only if the QREs
				 incurred in the twenty-four (24) month period selected by the Owner ending
				 within the taxable year in which the Rehabilitation is Placed-in-Service and
				 beginning no earlier than July 3, 2013 shall exceed the Adjusted Basis of the
				 Certified Historic Structure as of the beginning of the twenty-four (24) month
				 period or July 3, 2013, whichever is later. In the case of projects involving
				 multiple buildings (except for phased Rehabilitations addressed in §
											6.19(B)     of
				 this Part below), the Substantial Rehabilitation test must be met with respect
				 to each building separately based on the Adjusted Basis attributable to each
				 such building and the QREs attributable to each such building. The twenty-four
				 (24) month period is a Measuring Period for testing whether the Rehabilitation
				 is a Substantial Rehabilitation. QREs incurred in connection with the
				 Rehabilitation either before the beginning of the twenty-four (24) month
				 period, but not prior to July 3, 2013, or after the Rehabilitation is
				 Placed-in-Service but prior to the end of the taxable year in which the
				 Rehabilitation is Placed-in-Service may be included in the calculation of the
				 credit provided the Substantial Rehabilitation test is met. Expenditures
				 incurred prior to July 3, 2013 are ineligible as QREs, but are included in the
				 calculation of Adjusted Basis.
2.
				 In the case of any Rehabilitation that may reasonably be expected to be
				 completed in phases as set forth in architectural plans and specifications
				 prepared before the physical work on the Rehabilitation begins, at the election
				 of the Owner, §
											6.19(A)     of
				 this Part may be applied by substituting sixty (60) month period for
				 twenty-four (24) month period. A Rehabilitation may reasonably be expected to
				 be completed in phases if it consists of two or more distinct stages of
				 development. The Commission may review each phase of a Phased Project as it is
				 presented, and may issue a certificate for completed work upon completion of
				 each phase. However, an Assignable Historic Preservation Tax Credit Certificate
				 may be issued only upon satisfaction of the Substantial Rehabilitation test for
				 the entire Phased Project. Thereafter, Assignable Historic Preservation Tax
				 Credit Certificates may be issued upon receipt of a Certificate of Completed
				 Work for later phases without again having to meet the Substantial
				 Rehabilitation test. The Applicant may elect to claim the credit allowable for
				 each completed phase of a Phased Project, upon receipt from the Division of
				 Taxation of an Assignable Historic Preservation Tax Credit Certificate, which
				 shall be issued no earlier than the estimated completion date for such phase
				 set forth in the Contract. Any credit claimed prior to final certification of
				 the completed Rehabilitation will be contingent upon final certification of the
				 completed Rehabilitation.