The following words and terms when used in these rules shall
have the following meanings unless the context clearly indicates otherwise:
(1) Applicant--The entity that has submitted an application
for a building or structure it owns or for which it has a contract
to purchase.
(2) Application--A fully completed Texas Historic Preservation
Tax Credit Application form submitted to the Commission, which includes
three parts:
(A) Part A - Evaluation of Significance, to be used
by the Commission to make a determination whether the building is
a certified historic structure;
(B) Part B - Description of Rehabilitation, to be used
by the Commission to review proposed projects for compliance with
the Standards for Rehabilitation; and
(C) Part C - Request for Certification of Completed
Work, to be used by the Commission to review completed projects for
compliance with the work approved under Part B.
(3) Application fee--The fee charged by the Commission
and paid by the applicant for the review of Part B and Part C of the
application as follows:
Attached Graphic
(4) Audited cost report--Such documentation as defined
by the Comptroller in 34 TAC Chapter 3, Tax Administration.
(5) Building--Any edifice enclosing a space within
its walls, and usually covered by a roof, the purpose of which is
principally to shelter any form of human activity, such as shelter
or housing, or to provide working, office, parking, display, or sales
space. The term includes, among other examples, banks, office buildings,
factories, warehouses, barns, railway or bus stations, and stores
and may also be used to refer to a historically and functionally related
unit, such as a courthouse and jail or a house and barn. Functional
constructions made usually for purposes other than creating human
shelter or activity such as bridges, windmills, and towers are not
considered buildings under this definition and are not eligible to
be certified historic structures.
(6) Certificate of Eligibility--A document issued by
the Commission to the owner, following review and approval of a Part
C application, that confirms the property to which the eligible costs
and expenses relate is a certified historic structure and the rehabilitation
qualifies as a certified rehabilitation; and specifies the date the
certified historic structure was first placed in service after the
rehabilitation.
(7) Certified historic structure--A building or buildings
located on a property in Texas that is certified by the Commission
as:
(A) listed individually in the National Register of
Historic Places;
(B) designated as a Recorded Texas Historic Landmark
under §442.006, Texas Government Code, or as a State Antiquities
Landmark under Chapter 191, Texas Natural Resources Code; §21.6
and §26.3(66) and (67) of this title (relating to Recorded Texas
Historic Landmark Designation and Definitions, respectively); 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 certified local district as per 36 CFR §67.9.
(8) Certified local district--A local historic district
certified by the United States Department of the Interior in accordance
with 36 CFR §67.9.
(9) Certified rehabilitation--The rehabilitation of
a certified historic structure that the Commission has certified as
meeting the Standards for Rehabilitation. If the project is submitted
for the federal rehabilitation tax credit, it must be reviewed by
the National Park Service prior to a determination that it meets the
requirements for a certified rehabilitation under this rule. In the
absence of a determination for the federal rehabilitation tax credit,
the Commission shall have the sole responsibility for certifying the
project.
(10) Commission--The Texas Historical Commission.
(11) Comptroller--The Texas Comptroller of Public Accounts.
(12) Contributing--A building in a historic district
considered to be historically, culturally, or architecturally significant
according to the criteria established by state or federal government,
including those formally promulgated by the National Park Service
and the United States Department of the Interior at 36 CFR Part 60
and applicable National Register bulletins.
(13) Credit--The tax credit for the certified rehabilitation
of certified historic structures available pursuant to Chapter 172
of the Texas Tax Code.
(14) District--A geographically definable area, urban,
or rural, possessing a significant concentration, linkage, or continuity
of sites, building, structures, or objects united by past events geographically
but linked by association or history.
(15) Eligible costs and expenses--The qualified rehabilitation
expenditures as defined by §47(c)(2), Internal Revenue Code,
including rehabilitation expenses as set out in 26 CFR §1.48-12(c),
incurred during the project, except as otherwise specified in Chapter
172 of the Texas Tax Code.
(16) Federal rehabilitation tax credit--A federal tax
credit for 20% of qualified rehabilitation expenditures with respect
to a certified historic structure, as defined in §47, Internal
Revenue Code; 26 CFR §1.48-12; and 36 CFR Part 67.
(17) Functionally related buildings--A collection of
buildings that were constructed or used to serve and support an overall
single purpose during their period of significance. Examples include
but are not limited to: a residence and carriage house; a multi-building
apartment complex; a multi-building industrial or commercial complex;
or buildings constructed as a campus. Buildings within a typical neighborhood
or downtown commercial historic district, among other property types,
do not count as functionally related buildings with other buildings
in the district, unless there is a certain historical attachment other
than community development. Functionally related buildings owned by
one entity are viewed as a single property while those owned by separate
entities are viewed as separate properties.
(18) National Park Service--The agency of the U.S.
Department of the Interior that is responsible for certifying projects
to receive the federal rehabilitation tax credit.
(19) Owner--A person, partnership, company, corporation,
whether for profit or not, governmental body, an institution of higher
education or university system or any other entity holding a legal
or equitable interest in a Property or Structure, which can include
a full or partial ownership interest. Not all of these owner entities
can qualify as an applicant for the credit, based on the requirements
listed in Chapter 172 of the Texas Tax Code. A long-term lessee of
a property may be considered an owner if their current lease term
is at a minimum 27.5 years for residential rental property or 39 years
for nonresidential real property, as referenced by §47(c)(2),
Internal Revenue Code.
(20) Phased development--A rehabilitation project which
may reasonably be expected to be completed in two or more distinct
states of development, as defined by United States Treasury Regulation
26 CFR §1.48-12(b)(2)(v). Each phase of a phased development
can independently support an Application for a credit as though it
was a stand-alone rehabilitation, as long as each phase meets the
definition of a Project. If any completed phase of the rehabilitation
project does not meet the requirements of a certified rehabilitation,
future applications by the same owner for the same certified historic
structure will not be considered.
(21) Placed in Service--A status obtained upon completion
of the rehabilitation project as described in Part B of the application,
and any subsequent amendments, and documented in Part C of the application.
Evidence of the date a property is placed in service includes a certificate
of occupancy issued by the local building official and/or an architect's
certificate of substantial completion. Other documents will suffice
when certificates of occupancy and/or substantial completion are not
available for a specific project, including final contractor invoices
or other verifiable statements of completion. Alternate documents
should be approved by the Commission before submission. Placed in
Service documentation must indicate the date that work was completed.
(22) Project--A specified scope of work, as described
in a rehabilitation plan submitted with Part B of the application
and subsequent amendments, comprised of work items that will be fully
completed and Placed in Service. Examples of a project may include,
but are not limited to, a whole building rehabilitation, rehabilitation
of individual floors or spaces within a building, repair of building
features, or replacement of building systems (such as mechanical,
electrical, and plumbing systems). Partial or incomplete scopes of
work, such as project planning and design, demolition, or partial
completion of spaces, features, or building systems are not included
in this definition as Cont'd... |
