Ga. Comp. R. & Regs. R. 110-37-6-.04 - Requirements for Preliminary and Final Certification of Rehabilitated Historic Properties; Certification Procedures

(1) In order to be eligible for certification as rehabilitated historic property:

(a) A property must be a certified structure; and

(b) The rehabilitation must be a certified rehabilitation; and

(c) A property must be substantially rehabilitated.

(2) Who may apply:

(a) Ordinarily, only the fee simple owner of the property in question may apply for the certifications described in this chapter. If someone other than the fee simple owner makes an application for an evaluation of significance or rehabilitation project, the application must be accompanied by a written statement from the fee simple owner indicating that he or she is aware of the application and has no objection to the request for certification.

(b) Owners of properties which appear to meet the Georgia Register criteria but are not yet listed in the Georgia Register of Historic Places or which are located within potential historic districts may request preliminary determinations from the Department as to whether such properties may qualify as certified structures when and if the properties or the potential historic districts in which they are located are listed in the Georgia Register. Preliminary determinations may also be requested for properties within the boundaries, but outside the period or area of significance of a Georgia Register-listed historic district.

1. Procedures for obtaining these determinations shall be the same as those described in Rule 110-37-6-.05. Such determinations are preliminary.

(i) Preliminary determinations of significance will become final as of the date of the listing of the individual property or potential district in the Georgia Register.

(ii) For properties outside the period or area of significance of a Georgia Register-listed historic district, preliminary determinations of significance will become final when the district documentation on file with the Department is formally amended.

(iii) If during review of a request for certification of rehabilitation the Department determines that the property does not contribute to the significance of the district because of changes which occurred after the preliminary determination of significance was made, certified structure designation will be denied.

(c) Owners of properties not yet designated certified structures may obtain determinations from the Department on whether or not rehabilitation proposals meet the Standards for Rehabilitation. Such determinations will be made only when the owner has requested a preliminary determination of the significance of the property as described in this paragraph and such request for determination has been acted upon by the Department. Final certifications of rehabilitation will be issued only to owners of certified structures.

(3) Requests for certifications of historic significance and rehabilitation and certification by the owner of the substantial rehabilitation shall be made on Rehabilitated Historic Property Application Forms.

(a) Part A - Preliminary Certification must be submitted to request certification of historic significance or to request a preliminary determination of significance, and in providing preliminary certification approval of proposed or ongoing rehabilitation work.

1. Two (2) copies of the Part A application are required; one to be retained by the Department and one to be returned to the applicant with the official comments attached and to be used by the owner to apply for preapproval to claim tax credits from the Department of Revenue.

2. Owners must include adequate documentation as established by the Division for each request, in accordance with information requested in the application and instructions, in order for the application to be processed. Such documentation includes, but is not limited to:

(i) Name and mailing address of owner;

(ii) Name and address of property;

(iii) Name of historic district;

(iv) Photographs representing the condition and appearance of the property (building, site and landscape features) immediately prior to the start of rehabilitation work; photographs at the time of Part A application if rehabilitation activity has been started or completed; photograph(s) showing the property along with adjacent properties, buildings and/or structures on the street; and photographs of interior features and spaces adequate to document significance and integrity;

(I) Photo-keys depicting locational information about the views provided in the photographs.

(II) Additional photographs may be required, as determined by the Department.

(v) Brief description of the condition and appearance immediately prior to the start of rehabilitation work, including alterations, distinctive features and spaces, and date(s) of construction;

(vi) Brief statement of significance summarizing how the property does or does not reflect the values that give the district in which it is located its distinctive historical and visual character, and/or explaining any significance attached to the property itself (i.e., unusual building techniques, important event that took place there, etc.);

(vii) Sketch map clearly delineating property's location;

(viii) Signature of fee simple owner requesting or concurring in a request for evaluation;

(ix) Descriptions of existing conditions and all work associated with the rehabilitation; and

(x) Plans and other drawings providing visual information about project scope and details.

3. Determination that the structure is a certified structure must be confirmed before any proposed rehabilitation work is certified.

4. Reviews of rehabilitation projects will not be undertaken if the owner has objected to the listing of the property in the Georgia Register.

(b) Part B - Final Certification must be submitted to request final certification of a completed project. Approval of Part B certifies that the documented rehabilitation meets the Standards, constitutes a certification of completed rehabilitation work and indicates that the Department has certified that the owner has certified that the rehabilitation project for a certified structure is a substantial rehabilitation, as described in Rule 110-37-6-.03. Information contained in the application is required to obtain a benefit.

1. Two (2) copies of the Part B application are required; one to be retained by the Department and one to be returned to the applicant to be used by the owner to claim tax credits from the Department of Revenue.

(c) Amendment forms must be submitted to request approval of changes to the project subsequent to preliminary certification, request approval of individual project phases, or document changes to the property after final certification for a period of three (3) years.

(d) Application forms are available from the Division.

(4) Reviews of certification requests are processed upon receipt of a complete, adequately documented application, as defined in Rule 110-37-6-.05 and Rule 110-37-6-.07. Where adequate documentation is not provided, the owner will be notified of the additional information needed to undertake or complete review.

(a) In the event the review of the certification is not completed by the due date of the income tax return (including extensions if applicable), the credit provided by O.C.G.A. § 48-7-29.8 shall not be claimed on the original income tax return filed by the taxpayer. However, when certification is completed the taxpayer shall be entitled to claim the credit provided by O.C.G.A. § 48-7-29.8 on an amended income tax return for the taxable year in which the certified rehabilitation is completed and if applicable shall be entitled to receive a refund subject to the limitations provided in O.C.G.A. § 48-2-35.

(5) Approval of applications and amendments to applications is conveyed only in writing by duly authorized officials of the Division acting on behalf of the Department.

(a) Decisions with respect to certifications are made on the basis of the descriptions contained in the application form and other available information. In the event of any discrepancy between the application and any accompanying information submitted with it (such as architectural plans, drawings, specifications, etc.), the owner shall be requested to resolve the discrepancy in writing. In the event the discrepancy is not resolved, the description in the application form shall take precedence.

(6) Certification of substantial rehabilitation of a certified structure requirements:

(a) Owners must certify to the Department that the rehabilitation project for a certified structure is a substantial rehabilitation. When certifying the substantial rehabilitation, the owner shall submit a Part B application and provide:

1. Certification that the rehabilitation project for a certified structure is a substantial rehabilitation; and

2. The amount of the qualified rehabilitation expenditures incurred in the substantial rehabilitation; and

3. For a historic home, the adjusted basis as defined in Rule 110-37-6-.03(5)(c); and

4. For any other certified structure, the adjusted basis as defined in Rule 110-37-6-.03(5)(d); and

5. For a historic home, the date the home was first owned and used as the principal residence, whether the historic home is currently being used as such, and if the historic home is not yet being owned and used as the principal residence, the date on which it will be; and

6. Any other information determined necessary by the Department.

(b) The Department shall certify that the owner has completed this certification.

(c) The certification of substantial rehabilitation by the owner and the amount of the qualified rehabilitation expenditures incurred in the substantial rehabilitation shall be subject to examination by the Department of Revenue. At the request of the Department of Revenue, the owner shall make available the documents that support the substantial rehabilitation and the qualified rehabilitation expenditures incurred in the substantial rehabilitation. The Department of Revenue shall have the authority to disallow the credit provided by O.C.G.A. § 48-7-29.8 based on this examination or based on the failure to provide the documents requested.

(1) Applications describing projects that are not rehabilitations or are lacking necessary information shall not be processed.

(a) An application returned to the property owner because the project is not a rehabilitation or for lack of necessary information must be resubmitted in order to be processed and include all necessary information and other requirements to comprise a complete application that describes a rehabilitation as defined in this chapter.

Notes

Ga. Comp. R. & Regs. R. 110-37-6-.04

O.C.G.A. § 48-7-29.8.

Original Rule entitled "Requirements for Preliminary and Final Certification of Rehabilitated Historic Properties; Certification Procedures" adopted. F. July 17, 2020; eff. August 6, 2020.