171.396 Definitions for KRS 171.396 and 171.397.
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<![CDATA[ Page 1 of 2 171.396 Definitions for KRS 171.396 and 171.397. As used in this section and KRS 171.397: <br>(1) "Certified historic structure" means a structure that is located within the Commonwealth of Kentucky that is: <br>(a) Listed individually on the National Register of Historic Places; or <br>(b) Located in a historic district listed on the National Register of Historic Places and is certified by the council as contributing to the historic significance of the <br>district; (2) "Certified rehabilitation" means a completed substantial rehabilitation of a certified historic structure that the council certifies meets the United States Secretary of the <br>Interior's Standards for Rehabilitation; (3) "Certified rehabilitation credit cap" means an annual amount of: (a) Three million dollars ($3,000,000) for applications received prior to April 30, 2010; and (b) Five million dollars ($5,000,000) for applications received on or after April 30, 2010; plus any amount added to the certified rehabilitation credit cap pursuant to KRS <br>171.397(2)(c); (4) "Council" means the Kentucky Heritage Council; <br>(5) "Disqualifying work" means work that is performed within three (3) years of the completion of the certified rehabilitation that, if performed as part of the <br>rehabilitation certified under KRS 171.397, would have made the rehabilitation <br>ineligible for certification; (6) "Exempt entity" means any tax exempt organization pursuant to sec. 501(c)(3) of the Internal Revenue Code, any political subdivision of the Commonwealth, any <br>state or local agency, board, or commission, or any quasi-governmental entity; (7) "Local government" means a city, county, urban-county, charter county, or consolidated local government; (8) "Owner-occupied residential property" means a building or portion thereof, condominium, or cooperative occupied by the owner as his or her principal <br>residence; (9) "Qualified rehabilitation expense" means any amount that is properly chargeable to a capital account, whether or not depreciation is allowed under Section 168 of the <br>Internal Revenue Code, and is expended in connection with the certified <br>rehabilitation of a certified historic structure. It shall include the cost of restoring <br>landscaping and fencing that contributes to the historic significance of this structure, <br>but shall not include the cost of acquisition of a certified historic structure, <br>enlargement of or additions to an existing building, or the purchase of personal <br>property; (10) "Substantial rehabilitation" means rehabilitation of a certified historic structure for which the qualified rehabilitation expenses, during a twenty-four (24) month period Page 2 of 2 selected by the taxpayer or exempt entity, ending with or within the taxable year, <br>exceed: <br>(a) Twenty thousand dollars ($20,000) for an owner-occupied residential property; or (b) For all other property, the greater of: 1. The adjusted basis of the structure; or 2. Twenty thousand dollars ($20,000); (11) "Taxpayer" means any individual, corporation, limited liability company, business development corporation, partnership, limited partnership, sole proprietorship, <br>association, joint stock company, receivership, trust, professional service <br>organization, or other legal entity through which business is conducted that: <br>(a) Elects to claim the credit on a return and receive a refund as provided in KRS 171.397(2)(b)2.a.; or (b) Is the recipient of a credit which is transferred as provided in KRS 171.397(2)(b)2.b.; and (12) "Qualified purchased historic home" means any substantially rehabilitated certified historic structure if: <br>(a) The taxpayer claiming the credit authorized under KRS 171.397 is the first purchaser of the structure after the date of completion of the substantial <br>rehabilitation; (b) The structure or a portion thereof will be the principal residence of the taxpayer; and (c) No credit was allowed to the seller under this section. A qualified purchased historic home shall be deemed owner-occupied residential <br>property for purposes of this section. Effective: June 26, 2009 <br>History: Amended 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 33, effective June 26, 2009. -- Amended 2006 Ky. Acts ch. 149, sec. 224, effective July 12, 2006. -- <br>Created 2005 Ky. Acts ch. 168, sec. 150, effective March 18, 2005. Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 165, provides that this section shall apply to tax years beginning on or after January 1, <br>2005. ]]>