Compilation of Rules and Regulations of the State of Georgia
Department 110 - RULES OF GEORGIA DEPARTMENT OF COMMUNITY AFFAIRS
Chapter 110-37 - HISTORIC PRESERVATION
Subject 110-37-6 - GEORGIA STATE INCOME TAX CREDIT PROGRAM FOR REHABILITATED HISTORIC PROPERTY
Rule 110-37-6-.01 - Definitions

(a) "Certified rehabilitation" as defined in O.C.G.A. Sec. 48-7-29.8 means "repairs or alterations to a certified structure which are certified by the Department as meeting the United States Secretary of Interior's Standards for Rehabilitation or the Georgia Standards for Rehabilitation" as provided in this chapter.

(b) "Certified structure" as defined in O.C.G.A. Sec. 48-7-29.8 means "a historic building or structure that is located within a national historic district, individually listed in the National Register of Historic Places, individually listed in the Georgia Register of Historic Places, or is certified by the Department as contributing to the historic significance of a Georgia Register Historic District."

(c) "Department" means the Department of Community Affairs.

(d) "Division" means the Historic Preservation Division of the Department of Community Affairs.

(e) "Final certification" means approval of a completed rehabilitation associated with review of a Rehabilitated Historic Property Application Form Part B and which meets the requirements of a certified rehabilitation.

(f) "Functionally related historically" means a group of buildings and/or structures judged by the Department to have been directly associated to serve an overall purpose or share an associative relationship within a designated or identifiable historic or operational period. Buildings and/or structures that are functionally related historically may or may not exhibit the same or similar functions, but will exhibit usages that are related within their historic contexts.

(g) "Georgia Register of Historic Places" or "Georgia Register" means the Georgia Register of districts, sites, buildings, structures, and objects significant in Georgia history, architecture, engineering, and culture. For the purposes of this chapter, reference to the Georgia Register shall also denote reference to the National Register of Historic Places.

(h) "Georgia State Income Tax Credit Program for Rehabilitated Historic Property" means the program established by O.C.G.A. Sec. 48-7-29.8.

(i) "Historic building" or "historic structure" means a building or structure that is listed individually in the Georgia Register, oris located within a Georgia Register listed historic district and is certified by the Department, at the time of Rehabilitated Historic Property Application Form Part A evaluation, as contributing to the historic significance of that district. For purposes of the chapter, reference to "property" shall be interchangeable with historic building and historic structure where applicable within the context of a rule.

(j) "Historic District" means a geographically definable area, urban or rural, that possesses a significant concentration, linkage or continuity of sites, buildings, structures, or objects united by past events or aesthetically by plan or physical development. A district may also comprise individual elements separated geographically but linked by association or history.

(k) "Historic Home" as defined in O.C.G.A. Sec. 48-7-29.8 means "a certified structure which, or any portion of which is or will, within a reasonable period, be owned and used as the principal residence of the person claiming the tax credit allowed under O.C.G.A. Sec. 48-7-29.8. Historic home shall include any structure or group of structures that constitute a multifamily or multipurpose structure, including a cooperative or condominium. If only a portion of a building is used as such person's principal residence, only those qualified rehabilitation expenditures that are properly allocable to such portion shall be deemed to be made to a historic home."

(l) "Internal Revenue Code of 1986" is defined in O.C.G.A. Sec. 48-1-2.

(m) "National historic district" means a historic district that is listed in the National Register of Historic Places.

(n) "Net Profit of the Sale" means the gain upon the sale determined based upon the Internal Revenue Code of 1986 with any adjustments required by Chapter 7 of Title 48 of the O.C.G.A. In the event the gain is deferred and or exempted based on provisions of the Internal Revenue Code of 1986, the deferral and or exemption shall be disregarded in determining the net profit of the sale.

(o) "Potential historic district" means a historic district that appears to meet Georgia Register criteria and possesses historic integrity based on current information, and for which listing in the Georgia Register is imminent.

(p) "Preliminary certification" means approval of a proposed rehabilitation, with conditions as applicable, associated with review of a Rehabilitated Historic Property Application Form Part A.

(q) "Principal residence" means the principal domicile of the taxpayer and not a secondary residence of the taxpayer.

(r) "Qualified rehabilitation expenditure" as defined in O.C.G.A. Sec. 48-7-29.8 means "qualified rehabilitation expenditure as defined by Section 47(c)(2) of the Internal Revenue Code of 1986 and any amount properly chargeable to a capital account expended in the substantial rehabilitation of a structure that by the end of the taxable year in which the certified rehabilitation is completed is a certified structure. This term does not include the cost of acquisition of the certified structure, the cost attributable to enlargement or additions to an existing building, site preparation, or personal property." For purposes of this chapter, for a historic home qualified rehabilitation expenditures shall include expenditure types defined by Section 47(c)(2) of the Internal Revenue Code of 1986 and allowed by Internal Revenue Service Regulation 1.48-12. Expenditures directly associated with the rehabilitation not incurred by the owner of the certified structure are not considered qualified rehabilitation expenditures.

(s) "Reasonable period" means a period not to exceed six months following the completion of the certified rehabilitation.

(t) "Receiving the Credit" means the last day of the taxable year in which the certified rehabilitation is completed.

(u) "Rehabilitated Historic Property" means property that qualifies for the credit provided by O.C.G.A. Sec. 48-7-29.8.

(v) "Rehabilitation" means the process of returning or bringing a building or buildings to a state of utility, through repair or alteration, which makes possible an efficient contemporary use while preserving those portions and features of the building(s) which are significant to its historic, architectural and cultural values. Repairs or alterations exclusively or principally associated with additions, updating kitchens and/or bathrooms, cosmetic finish treatments, or replacing building components at the end of their expected service life are not rehabilitations within the meaning of this definition.

(w) "Standards for Rehabilitation" or "Standards" means the United States Department of Interior's Standards for Rehabilitation provided by 36 CFR Part 67.7 or the Georgia Standards for Rehabilitation provided by Department of Community Affairs' rules.

(x) "State Historic Preservation Officer" (SHPO) means the official designated by the Governor of Georgia to administer the state's historic preservation program under the National Historic Preservation Act and O.C.G.A. Sec. 12-3-50.1(c)(13). SHPO may also refer to the agency that carries out the functions of the State Historic Preservation Officer, which for Georgia is the Historic Preservation Division of the Georgia Department of Community Affairs.

(y) "Substantial rehabilitation" as defined in O.C.G.A. Sec. 48-7-29.8 means "rehabilitation of a certified structure for which the qualified rehabilitation expenditures, at least 5 percent of which must be allocable to the exterior during the 24 month period selected by the owner ending with or within the taxable year, exceed:

(z) "Target area" as defined in O.C.G.A. Sec. 48-7-29.8 means "a qualified census tract under Section 42 of the Internal Revenue Code of 1986, found in the United States Department of Housing and Urban Development document number N-94-3821; FR-3796-N-01." For purposes of this chapter, the Department of Housing and Urban Development may also be referred to as HUD.