Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter V - FRANCHISE TAX › Section 3.598 - Margin: Tax Credit for Certified Rehabilitation of Certified Historic Structures

Current through Reg. 49, No. 28; July 12, 2024
(a) Effective date.
				  The provisions of this section apply to franchise tax reports originally due on
				  or after January 1, 2015, except as otherwise noted.
(b) Definitions. The following words and
				  terms, when used in this section, shall have the following meanings, unless the
				  context clearly indicates otherwise.
(1)
				  Audited cost report--A report that itemizes the eligible costs and expenses
				  incurred by the entity in the certified rehabilitation of the certified
				  historic structure and that is issued by a certified public accountant who
				  holds a certificate issued under Occupations Code, Chapter 901 (Accountants) or
				  is an out-of-state practitioner with substantially equivalent qualifications as
				  provided by Occupations Code, §
											901.462
				  (Practice by Out-of-State Practitioner with Substantially Equivalent
				  Qualifications).
(2) Certificate of
				  eligibility--The certification issued by the commission in accordance with Tax
				  Code, §
											171.904
				  (Certification of Eligibility), confirming that the property to which the
				  eligible costs and expenses relate is a certified historic structure and that
				  the rehabilitation qualifies as a certified rehabilitation; and specifying the
				  date the historic structure was first placed in service after the
				  rehabilitation.
(3) Certified
				  historic structure--A property in this state that is:
(A) listed individually in the National
				  Register of Historic Places;
(B)
				  designated as a Recorded Texas Historic Landmark under Government Code, §
												442.006
				  (State Historical Marker Program), or as a state archeological landmark under
				  Natural Resources Code, Chapter 191 (Antiquities Code); or
(C) certified by the commission as
				  contributing to the historic significance of:
(i) a historic district listed in the
				  National Register of Historic Places; or
(ii) a local district certified by the United
				  States Department of the Interior in accordance with 36 Code of Federal
				  Regulations, §67.9 (Certification of State or Local Historic
				  District).
(4) Certified rehabilitation--The
				  rehabilitation of a certified historic structure that the commission has
				  certified as meeting the United States Secretary of the Interior's Standards
				  for Rehabilitation as defined in 36 Code of Federal Regulations, §67.7
				  (Standards of Rehabilitation).
(5)
				  Commission--The Texas Historical Commission.
(6) Eligible costs and expenses--Except as
				  provided in subparagraphs (A) and (B) of this paragraph, qualified
				  rehabilitation expenditures, as defined by Internal Revenue Code,
				  §47(c)(2) (Rehabilitation Credit), incurred by the entity establishing the
				  credit.
(A) Nonprofit corporation exempt from
				  federal income tax. Effective for reports due on or after January 1, 2016, the
				  provisions of Internal Revenue Code, §47(c)(2)(B)(i) (Straight-line
				  depreciation must be used) and (v) (Tax-exempt use property) do not apply to
				  costs and expenses incurred by an entity exempted under Tax Code, §
												171.063
				  (Exemptions-Nonprofit Corporation Exempt from Federal Income Tax) if the other
				  provisions of Internal Revenue Code, Section §47(c)(2) are
				  satisfied.
(B) Institution of
				  higher education or university system. Effective for costs and expenses
				  incurred on or after June 14, 2017, and before January 1, 2022, the provisions
				  of Internal Revenue Code, §47(c)(2)(B)(i) and (v) do not apply to costs
				  and expenses incurred by an institution of higher education or university
				  system as defined by Education Code, §
												61.003(Definitions),
				  if the other provisions of Internal Revenue Code, §47(c)(2) are
				  satisfied.
(7)
				  Placed-in-service date--The date specified on the certificate of eligibility
				  issued by the commission. See also 13 TAC §
											13.1.
(8) Year--A calendar year.