13 Tex. Admin. Code § 13.1 - Definitions
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:
(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 projects. Per §
13.6(f) of this
title (relating to Application Review Process), the Commission's review
encompasses the entire building and site even if other work items are not
included in a submitted project.
(23) Property--A parcel of real property
containing one or more buildings or structures that is the subject of an
application for a credit.
(24)
Rehabilitation--The process of returning a building or buildings to a state of
utility, through repair or alteration, which makes possible an efficient use
while retaining those portions and features of the building and its site and
environment which are significant.
(25) Rehabilitation plan--Descriptions,
drawings, construction plans, and specifications for the proposed
rehabilitation of a certified historic structure in sufficient detail to enable
the Commission to evaluate compliance with the Standards for
Rehabilitation.
(26) Standards for
Rehabilitation--The United States Secretary of the Interior's Standards for
Rehabilitation as defined by the National Park Service in
36 CFR §
67.7.
(27) Structure--A building; see also
certified historic structure. "Structure" may be used in place of the word
"building," but all tax credit projects must involve rehabilitation of a
building as defined in §
13.1(5) of this
title.
(28) Tax Credit--A credit
earned against either the state franchise tax or the insurance premium tax per
Chapter 172 of the Texas Tax Code and any limitations provided
therein.
Notes
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