Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 3 - Historic Structures Tax Credit (280-RICR-20-20-3) › Section 280-RICR-20-20-3.6 - 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 Qualified
				 Rehabilitation Expenditures 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 shall equal or exceed fifty percent of the
				 Adjusted Basis of the Certified Historic Structure as of the beginning of the
				 twenty-four (24) month period. In the case of projects involving multiple
				 buildings (except for phased Rehabilitations addressed in §
											3.6(A)(2)     of
				 this Part), 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 Qualified Rehabilitation Expenditures attributable to each
				 such building. The twenty-four (24) month period is a measuring period for
				 testing whether the Rehabilitation is a Substantial Rehabilitation. Qualified
				 Rehabilitation Expenditures incurred in connection with the Rehabilitation
				 either before the beginning of the twenty-four (24) month period 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.
2. In the case of any
				 Rehabilitation that may reasonably be expected to be completed in phases set
				 forth in architectural plans and specifications prepared before the physical
				 work on the Rehabilitation begins, at the election of the Owner, §
											3.6(A)(1)     of
				 this Part may be applied by substituting "60 month period" for "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 Investment Tax Credit Certificate may be
				 issued only upon satisfaction of the Substantial Rehabilitation test for the
				 entire Phased Project. Thereafter, Assignable Historic Preservation Investment
				 Tax Credit Certificates may be issued upon issuance 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 Tax Division of
				 an Assignable Historic Preservation Investment Tax Credit Certificate. Any
				 Credit claimed prior to final certification of the completed Rehabilitation
				 will be contingent upon final certification of the completed
				 Rehabilitation.