Delaware Administrative Code
Title 1 - Authorities, Boards and Commissions
900 - Division of Historical and Cultural Affairs
901 - Historic Preservation Tax Credit Program
Section 901-7.0 - Procedures for Requesting a Credit Award

Universal Citation: 1 DE Admin Code 901-7.0

Current through Register Vol. 28, No. 3, September 1, 2024

7.1 An applicant shall request a credit award by filing a Request for Credit Award application with the State Office. The Request for Credit Award application shall be submitted with the Part 3 application.

7.2 The State Office will not process an incomplete Request for Credit Award application until all documentation as required is received. Where adequate documentation is not provided, the State Office shall notify the applicant of the additional information needed to undertake or complete the review.

7.3 The State Historic Preservation Officer shall notify the applicant of the amount of their credit award. The credit award is calculated as a percentage of the qualified expenditures and will be rounded down to the nearest whole dollar. The criteria for applying the percentages to establish the credit award are:

. For depreciable (income-producing) certified properties, 20% of qualified expenditures;

. For depreciable certified properties where the whole or a part, receives low income housing credits, 30% to be applied to that portion of the square footage;

. For all other certified properties, 30% except where an owner would meet HUD established low income criteria, then 40%; and

. For resident curators, 100% of the qualified expenses submitted up to $5,000.

7.4 The Delaware State Historic Preservation Officer may, at his/her discretion, consider an increase in a credit award where there has been a documented increase in qualified costs. A taxpayer whose request for an increase in credits is disapproved under this subsection may appeal in accordance with the administrative review process established in Section 10.0 of this regulation.

7.5 Despite having been assigned a certain credit award, an applicant may only claim the amount of tax credits which are supported by their actual rehabilitation costs.

7.6 Each fiscal year, [a portion] of the total that is allocated for Credit Awards is to be distributed as follows:

7.6.1 $100,000 is reserved for distribution to qualified resident curators. If, in any fiscal year, there are insufficient qualified resident curators to exhaust this allotment, the unused credit amount will be available in the next fiscal year for award to any eligible project.

7.6.2 $1.5 million is reserved for projects receiving a credit award of not more than $300,000. After April 1, any unassigned portion of the $1.5 million is released to be available for credit awards to any eligible project.

7.6.3 $1.5 million is reserved for projects located in Downtown Development Districts, of which $500,000 is reserved for projects in DDDs receiving tax credits of not more than $300,000. After April 1, any unassigned portion of the $1.5 million is released to be available for credit awards to any eligible project.

7.6.4 Any credits authorized by the legislature that are not allocated by Delaware Code to a specific type of project shall be reserved for distribution in accordance with the methods established by Delaware Code.

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