Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 20 - TAX CREDITS/DEDUCTIONS
Part 3 - Historic Structures Tax Credit (280-RICR-20-20-3)
Section 280-RICR-20-20-3.5 - Application Guidelines
Universal Citation: 280 RI Code of Rules 20 20 3.5
Current through September 18, 2024
A. Certifications of Significance and Rehabilitation - General.
1. Application Request for designation of a
building as a Certified Historic Structure and of a proposed Rehabilitation
shall be made on the Historic Preservation Certification Application forms.
a. Part 1 of the application, Evaluation of
Significance, is used to request certification of historic significance and is
filed with the Commission and shall contain such information as is required in
§
3.5(B)(2) of this Part.
b.
Part 2 of the application, Description of Rehabilitation, is used to request
certification of a proposed Rehabilitation as meeting the Standards for
Rehabilitation. Part 2 of the application must be filed with the Commission
prior to the Certified Historic Structure being Placed-in-Service and shall
contain such information as is required in §
3.5(D)(1) of this
Part.
c. Part 3 of the application,
Request for Certification of a Completed Work, is used to request certification
of completed Rehabilitation project by the Commission.
d. The Part 1, Part 2 and Part 3 application
are reviewed by the Commission.
e.
In order to obtain an Assignable Historic Preservation Investment Tax Credit
Certificate upon issuance by the Commission of the Certificates of Completed
Work, the Owner shall file with the Tax Division a copy of the Accountant's
Certification and the Certificate of Completed Work. The Owner shall also file
with the Tax Division a complete adequately documented RI Form HTC -
8016.
f. The Owner must also enter
into a Contract with the Tax Division and pay the Processing Fee described in
§
3.2(A)(2)(b) of this Part in order to qualify for tax credits.
2. Application forms are available from the
Commission at the Old State House, 150 Benefit Street, Providence, RI 02903;
Tel: (401) 222-2678; website www.preservation.ri.gov. and from the Tax
Division at One Capitol Hill, Providence, RI 02908; Tel. (401) 574-8729;
website www.tax.ri.gov.
3. Coordination with Federal Filings. If the
applicant also seeks to claim the federal Historic Rehabilitation Tax Credit,
application may be made on Parts 1, 2 and 3 of the Historic Preservation
Certification application used by the National Park Service, with such
additional forms and certifications as may be requested by the
Commission.
4. Commission and Tax
Division Review. The Commission and the Tax Division generally completes
reviews of certification requests within thirty (30) business days of receiving
a complete, adequately documented application. Where adequate information is
not provided, the Commission and/or the Tax Division will notify the Applicant
of the additional information needed to complete the review. The Commission and
the Tax Division will adhere to this time period as closely as possible, but
failure to complete a review within the designated period does not waive or
alter any certification requirement or imply approval. Notwithstanding the
foregoing,
a. within ninety (90) days after
receipt of a complete, adequately documented application for a Certificate of
Completed Work, the Commission, must issue a written determination either
granting or denying a Certificate of Completed Work and
b. Within 90 days after receipt of a
complete, adequately documented RI Form 8016 and an Accountant's Certification,
the Tax Division will issue a written determination as to the amount of
Historic Preservation Investment Tax Credit for which a Substantial
Rehabilitation qualifies; conditioned on the Commission issuing a Certificate
of Completed Work.
5.
Commission Decisions; Reliance on Application. Certifications of Part 1, 2,
& 3 are only given in writing by the Executive Director or other duly
authorized representative of the Commission. Certifications of the amount of
the historic tax credit for which the Rehabilitation qualifies are only given
in writing by the Tax Division. Decisions with respect to certifications are
made on the basis of the information contained in the application form and
other available information. The Applicant's signature on any application form
is a representation to the Commission and the Tax Division that the facts
contained therein are true and correct, and the Commission and the Tax Division
are entitled to rely thereon. If information comes to the attention of the
Commission or the Tax Division at any time up to and including the last day of
the applicable Holding Period, that is materially inconsistent with
representations made in an application, the Commission may deny the requested
certification or revoke a certification previously given or the Tax Division
may terminate the Contract and any Processing Fees paid thereunder will be
forfeited. Such denial or revocation may be appealed pursuant to the procedures
set forth in §
3.5(F) of
this Part.
B. Certification of Historic Significance.
1.
Consultation. Any Owner may consult with the Commission to determine whether a
property is a Certified Historic Structure.
2. Part 1-Application for Certification of
Historic Structure. The Applicant shall prepare Part 1 of the Historic
Preservation Certification Application and such form shall be recorded as
received at the Commission prior to January 1, 2008. Such application form
shall be filed according to the instructions accompanying the application,
including:
a. Name and mailing address of the
Owner and, if the Owner holds leasehold title to the building or an
identifiable portion thereof, the name and mailing address of the holder of the
fee interest;
b. Name and address
of the property;
c. Name of the
historic district (if located in a historic district);
d. Current color photographs of the building
and its site, showing exterior and interior features and spaces adequate to
document the property's significance;
e. Brief description of the appearance of the
property, including alterations, characteristic features, and estimated date(s)
of construction;
f. Brief statement
of significance, including a summary of how the property reflects the
recognized historic values of any historic district in which it is
located;
g. Map showing the
location of the property; and
h.
Signature of the Applicant.
3. Review of Application for Certification of
Historic Structure.
a. Scope of Review. The
Commission will determine if the property is:
(1) listed individually on the National
Register of Historic Places; or
(2)
listed individually on the State Register; or
(3) located in a registered historic district
and is of historic significance to the district.
b. Physical Integrity. The Commission will
determine if the property possesses sufficient physical integrity to convey its
historical significance.
c.
Multiple Buildings or Complex. For purposes of a determination of historic
significance, properties containing more than one building, where the
Commission determines that the buildings have been functionally related
historically to serve an overall purpose, such as a mill complex or a residence
and carriage house, will be treated as a single certified historic building,
whether the property is individually listed in the National Register of
Historic Places or the State Register of Historic Places or is located within a
registered historic district. Buildings that are functionally related
historically are those which have functioned together to serve an overall
purpose during the property's period of significance.
d. Determination of Significance to District.
Properties within Registered Historic Districts will be evaluated to determine
if they contribute to the historic significance of the district by application
of the standards set forth in §
3.4(C) of
this Part.
e. Preliminary
Determination of Eligibility for Listing a Structure. Owners of properties that
are not listed on the National Register of Historic Places or the State
Register of Historic Places may request a written opinion from the Commission
as to whether the property meets the criteria for listing on the Register.
Owners of properties that the Commission considers to be eligible for listing
may apply for preliminary certification of their properties, pursuant to §
3.4(C) of
this Part. Preliminary certifications will become final, and the properties
will become Certified Historic Structures, as of the date of listing on the
National Register of Historic Places or the State Register. Issuance of
preliminary certification does not obligate the Commission to nominate the
property. Applicants proceed with Rehabilitation projects at their own risk; if
the historic property is not listed prior to completion of the project, the
preliminary certification will not become final.
f. Preliminary Determination of Eligibility
for Registering a District. Owners of properties that are located in potential
historic district may request a written opinion from the Commission as to
whether the potential historic district meets the criteria for being listed as
a Registered Historic District. Owners of properties located in districts that
the Commission considers to be eligible for listing may apply for preliminary
certification of their properties, pursuant §
3.4(C) of
this Part. Applications for preliminary certification of buildings within
eligible historic districts must show how the district meets the criteria for
being listed as a historic district, and how the property contributes to the
significance of that district, pursuant to §
3.4(C) of
this Part. Preliminary certifications will become final, and the properties
will become Certified Historic Structures, as of the date of listing the
district as a Registered Historic District. Issuance of preliminary
certification does not obligate the Commission to nominate the potential
district. Applicants proceed with Rehabilitation projects at their own risk; if
the historic district is not listed as a Registered Historic District prior to
completion of the project, the preliminary certification will not become
final.
4. Application
for Certification of Rehabilitation of Buildings in Districts with Preliminary
Historic Certification. Owners of properties that have received preliminary
certifications may apply for certification of a proposed Rehabilitation,
pursuant to §
3.5(D) of
this Part. Final certifications of Rehabilitations will be issued only for
Certified Historic Structures.
C. Standards for Evaluating Significance within Registered Historic Districts
1.
Evaluations of Significance. Some historic districts are resources whose
concentration or continuity possesses greater historical significance than many
of their individual component buildings and buildings. These usually are
documented as a group rather than individually. Accordingly, this type of
documentation is not conclusive for the purposes of an evaluation of the
significance of an individual component. The applicant shall supplement this
documentation using Part 1 of the Historic Preservation Certification
Application, providing information on the significance of the specific
property, as set forth in §
3.5(B)(2) of
this Part.
2. Standards for
Evaluation. The Commission evaluates properties located within Registered
Historic Districts to determine if they contribute to the historic significance
of the district by applying the following standards:
a. A property contributing to the historic
significance of a district is one which by location, design, setting,
materials, workmanship, feeling, and association adds to the district's sense
of time and place and historical development.
b. A property not contributing to the
historic significance of a district is one which does not add to the district's
sense of time and place and historical development; or one where the location,
design, setting, materials, workmanship, feeling and association have been so
altered or have so deteriorated that the overall integrity of the building has
been irretrievably lost.
c.
Ordinarily buildings that have been built within the past fifty (50) years
shall not be considered to contribute to the significance of a district unless
a strong justification concerning their historical or architectural merit is
given or the historical attributes of the district are considered to be less
than fifty (50) years old.
3. If a non-historic surface material
obscures a building's facade, it may be necessary for the Owner to remove a
portion of the surface material before requesting certification so that a
determination of significance can be made. After the material has been removed,
if the obscured facade has retained substantial historic integrity and the
property otherwise contributes to the significance of the historic district, it
may be determined to be a Certified Historic Structure.
D. Certifications of Rehabilitation.
1. Certification of Proposed Rehabilitation
or of Completed Work. Applicants requesting certification of a proposed
Rehabilitation shall comply with the procedures listed in §
3.5(D)(1)(a) of this Part; Applicants requesting a Certificate of Completed Work shall
comply with the procedures listed in §
3.5(D)(1)(b) of this Part. Processing Fees, described in §
3.9 of this Part, are charged
by the Commission or the Tax Division for reviewing all proposed, ongoing, and
completed Rehabilitation work. No certification decisions shall be issued to
any Applicant until the applicable fees are received.
a. Part 2 - Application for Certification of
Proposed Rehabilitation. An application for certification of a proposed
Rehabilitation shall be submitted to the Commission prior to the Certified
Historic Structure being placed in service. Applicants are strongly encouraged
to request the Commission review before beginning a Rehabilitation project. To
request review of a proposed Rehabilitation, the Applicant shall submit Part 2
of the Historic Preservation Certification Application form according to the
instructions accompanying the application. This documentation includes but is
not limited to:
(1) Name and mailing address
of the Owner and, if the Owner holds leasehold title to the Certified Historic
Structure or an identifiable portion thereof, the name and mailing address of
the holder of the fee interest;
(2)
Name and address of the property;
(3) Color photographs of the property
adequate to document the appearance of the building, both on the interior and
the exterior, and its site and environment before Rehabilitation;
(4) The Applicant's estimate of projected
Qualified Rehabilitation Expenditures and of Adjusted Basis in the Certified
Historic Structure as of the date of application;
(5) Signature of the Applicant and, if the
Applicant is not the holder of the fee interest in the Certified Historic
Structure, the signature of the fee owner as to the Adjusted Basis in the
Certified Historic Structure as of the date of application.
(6) Other documentation, including but not
limited to plans, specifications, surveys and/or structural reports may be
required to evaluate rehabilitation projects. Where necessary documentation is
not provided, review and evaluation will be delayed and a denial of
certification may be issued on the basis of lack of information. Because the
circumstances of each Rehabilitation are unique, certifications that may have
been granted to other Rehabilitations are not specifically applicable and may
not be relied on by Applicants as applicable to other projects.
b. Part 3 - Request for
Certification of Completed Work. To request certification of a completed
Rehabilitation, the Applicant shall submit Part 3 of the Historic Preservation
Certification Application, "Request for Certification of Completed Work," to
the Commission according to the instructions accompanying the application, and
provide documentation to the Commission that the completed project is
consistent with the work described in Part 2. This documentation includes but
is not limited to:
(1) Name and mailing
address of the Owner and, if the Owner holds leasehold title to the Certified
Historic Structure or an identifiable portion thereof, the name and mailing
address of the holder of the fee interest;
(2) Name and address of the
property;
(3) Color photographs of
the property showing the completed Rehabilitation work, including exterior and
interior features and spaces, sufficient to demonstrate that the completed work
is consistent with the Standards for Rehabilitation. Photographic views after
Rehabilitation should correspond with photographic views submitted in Part
2;
(4) Final costs attributed to
the Rehabilitation;
(5) The Placed
in Service date; and
(6) Signature
of the Applicant.
c.
Certification by Commission of Proposed Rehabilitation. The Commission shall
issue to the Applicant a written determination either denying or certifying the
Proposed Rehabilitation within the timeframe described in §
3.5(A)(4) of
this Part.
d. Certification of
Completed Work. Within ninety (90) days after the Commission's and the Tax
Division's receipt of an application for Certification of Completed Work, the
Commission and/or the Tax Division shall issue to the Applicant
(1) a written determination either denying or
certifying the Rehabilitation (a "Certificate of Completed Work"),
and
(2) a certification of the
amount of Historic Preservation Investment Tax Credit for which the
Rehabilitation qualifies (an "Assignable Historic Preservation Investment Tax
Credit Certificate" pursuant to the procedures of §
3.8 of this Part.
e. Assignable Historic
Preservation Investment Tax Credit Certificate.
(1) To request one or more Assignable
Historic Preservation Investment Tax Credit Certificates, the Applicant shall
submit to the Tax Division;
(2)
Accountant's Certification of the actual Qualified Rehabilitation Expenditures
attributed solely to the Rehabilitation of the Certified Historic Building and
the satisfaction of the Substantial Rehabilitation test;
(3) The Placed in Service Date.
(4) A complete, adequately documented RI Form
HTC -8016
(5) Within 90 days after
the Tax Division's receipt of the Accountant's Certification, the RI Form 8016
and the Placed in Service Date, the Tax Division shall issue to the Applicant a
certification of the amount of Historic Preservation Investment Tax Credit for
which the Rehabilitation qualifies and shall issue an "Assignable Historic
Preservation Investment Tax Credit Certificate" pursuant to the procedures of
§
3.8 of
this Part; both of which are conditioned on the Commission issuing a
Certificate of Completed Work.
f. Abandonment of Project.
(1) For these structures where a Part 1
application was submitted before January 1, 2008 and five (5) years has elapsed
from the payment of the Processing Fee on May 15, 2008, the Commission and the
Tax Division may require that the Owner submit evidence that Substantial
Construction has occurred which shall include the certification of an
accountant licensed in the State of Rhode Island that at least ten percent of
the Estimated Qualified Rehabilitation Expenditures have been incurred. If the
project has not meet the criteria of Substantial Construction the project shall
be considered abandoned and the Processing Fee shall be refunded, without
interest.
(2) At any time after
payment of the Processing Fee and execution of a Contract, the Applicant may
inform the Commission and the Tax Division in writing that it intends to
abandon the project or to complete it without compliance with the Standards for
Rehabilitation and that it relinquishes all claims to the Tax Credits. Upon
receipt of such notice, the Tax Division shall refund all Processing Fees,
without interest.
2. Scope of Rehabilitation; Qualified
Rehabilitation Expenditures. For purposes of Commission reviews and
certification, a Rehabilitation project encompasses all work on the interior
and exterior of the certified historic building(s) and its site and
environment, as well as related demolition, new construction or rehabilitation
work that may affect the historic qualities, integrity, site, landscape
features, and environment of the property. The Commission will determine if
such work is consistent with the standards for Rehabilitation whether or not a
Credit is claimed for those costs. However, only those costs that constitute
Qualified Rehabilitation Expenditures may be included in the calculation of the
Historic Preservation Investment Tax Credit. The Commission and the Tax
Division are entitled to rely on the Accountant's Certification regarding the
Qualified Rehabilitation Expenditures actually incurred included with the
Application without independent investigation. However, the Tax Division
reserves the right to request additional documentation and supporting detail to
verify Qualified Rehabilitation Expenditures, including but not limited to, the
original documents of entry, vendor lists, payroll record, accounts, and other
records.
a. All elements of the
Rehabilitation project shall be consistent with the Standards for
Rehabilitation. Portions of a project that are not in conformance with the
Standards may not be exempted from review. In general, an Applicant undertaking
a Rehabilitation will not be held responsible for rehabilitation work not part
of the current project that occurred more than five (5) years before the
current project began, or Rehabilitation work not part of the current project
that was undertaken by previous owners.
b. Consistency with the Standards for
Rehabilitation will be determined on the basis of the application documentation
and other available information by evaluating the property, as it existed
before the beginning of the Rehabilitation.
3. Determination of Consistency with
Standards for Rehabilitation. The Commission, on receipt of the complete
application describing the Rehabilitation project, shall determine if the
project is consistent with the Standards for Rehabilitation. If the project
does not meet the Standards for Rehabilitation, the Commission shall advise the
Applicant of that fact in writing. Where possible, the Commission will advise
the Applicant of necessary revisions to meet the Standards for
Rehabilitation.
4. Determination of
Qualified Rehabilitation Expenditures. The Tax Division, upon receipt of the
complete application describing the Rehabilitation Project, shall determine if
the costs attributed to the Rehabilitation meet the criteria of Qualified
Rehabilitation Expenditures. If any costs of a project are denied as Qualified
Rehabilitation Expenditures, the Tax Division shall advise the Applicant of
that fact in writing briefly setting forth the grounds for said
denial.
5. Changes after
Determination. Once a proposed or ongoing project has been approved,
substantive changes in the work as described in the application shall be
brought promptly to the attention of the Commission and the Tax Division by
written amendment to the application to ensure continued consistency to the
Standards for Rehabilitation.
6.
Standards for Rehabilitation. The Standards for Rehabilitation are the criteria
used to determine if a Rehabilitation qualifies as a Certified Rehabilitation.
The intent of the Standards for Rehabilitation is to return a historic property
to a state of utility through repairs or alterations which make possible the
efficient contemporary use while preserving those portions and features of the
property which are significant to its historic, architectural, and cultural
values. The Standards for Rehabilitation pertain to historic buildings of all
materials, construction types, sizes, and occupancy and encompass the exterior
and the interior of historic buildings. The Standards also encompass related
landscape features and the building's site and environment, as well as
attached, adjacent, or related new construction. To be certified, a
Rehabilitation shall be determined by the Commission in its reasonable
discretion to be consistent with the historic character of the building(s) and,
where applicable, the district in which it is located.
7. Application of Standards for
Rehabilitation. The Standards for Rehabilitation shall be applied to specific
Rehabilitation projects in a reasonable manner taking into consideration
economic and technical feasibility.
a. A
property shall be used for its historic purpose or be placed in a new use that
requires minimal change to the defining characteristics of the building and its
site and environment.
b. The
historic character of a property shall be retained and preserved. The removal
of historic materials or alteration of features and spaces that characterize a
property shall be avoided.
c. Each
property shall be recognized as a physical record of its time, place, and use.
Changes that create a false sense of historical development, such as adding
conjectural features or architectural elements from other buildings, shall not
be undertaken.
d. Most properties
change over time; those changes that have acquired historic significance in
their own right shall be retained and preserved.
e. Distinctive features, finishes and
construction techniques or examples of craftsmanship that characterize a
historic property shall be preserved.
f. Deteriorated architectural features shall
be repaired rather than replaced. Where the severity of deterioration requires
replacement of a distinctive feature, the new feature should match the old in
design, color, texture, and other visual qualities and, where possible,
materials. Replacement of missing architectural features must be substantiated
by documentary, physical, or pictorial evidence.
g. Chemical or physical treatments, such as
sandblasting, that cause damage to historic materials shall not be used. The
surface cleaning of buildings, if appropriate shall be undertaken using the
gentlest means possible.
h.
Significant archeological resources affected by a project shall be protected
and preserved. If these resources must be disturbed, mitigation measures shall
be undertaken.
i. New additions,
exterior alterations, or related new construction shall not destroy historic
materials that characterize the property. The new work shall be differentiated
from the old and shall be compatible with the massing, size, scale, and
architectural features to protect the historic integrity of the property and
its environment.
j. New additions
and adjacent or related new construction shall be undertaken in such a manner
that if removed in the future, the essential form and integrity of the historic
property and its environment would be unimpaired.
8. Quality of Materials and Work. The quality
of materials, craftsmanship, and related new construction in a Rehabilitation
project should be commensurate with the quality of materials, craftsmanship,
and design of the Certified Historic Structure in question. This standard will
be applied in a reasonable manner taking into account economic and technical
feasibility. Certain treatments, if improperly applied, or certain materials by
their physical properties, may cause or accelerate physical deterioration of
historic buildings. Inappropriate Rehabilitation measures include, but are not
limited to: excessively abrasive paint removal; improper masonry repointing
techniques; improper exterior masonry cleaning methods; improper introduction
of insulation where damage to historic fabric would result; and incompatible
additions and new construction on historic properties. In almost all
situations, these measures and treatments will result in denial of
certification.
9. Structural
Matters. In certain limited cases, it may be necessary to dismantle and rebuild
portions of a Certified Historic Structure to stabilize and repair weakened
structural members and systems. In these cases, the Commission will consider
this extreme intervention as part of a Certified Rehabilitation if:
a. The necessity for dismantling is justified
in supporting documentation;
b.
Significant architectural features and overall design are retained;
and
c. Adequate historic materials
are retained to maintain the architectural and historic integrity of the
overall structure. These standards will be applied in a reasonable manner
taking into account economic and technical feasibility.
E. All Available Information Used in Determination. The qualities of a property and its environment which qualify it as a Certified Historic Structure are determined taking into account all available information, including information derived from the physical and architectural attributes of the building; these determinations are not limited to information contained in the State Register of Historic Places nomination reports.
F. Appeals.
1. Appeal Procedures. An Applicant may appeal
any denial or revocation of certification. A request for an appeal shall be
made in writing to the Commission, within sixty (60) days of receipt of the
decision which is the subject of the appeal. It is not necessary for the
Applicant to present arguments for overturning a decision within this 60-day
period. The Applicant may request an opportunity to meet with the Commission or
a Sub-Committee thereof, but all information that the Applicant wishes the
Commission to consider shall be in writing. If the appeal disputes a
determination of Qualified Rehabilitation Expenditures or other accounting or
tax related issues, agents or employees of the Tax Division may be joined in
the appeal to present written evidence and testimony on the issues. The
Commission shall consider the record of the decision in question, and further
written submissions by the Applicant, and other available information, and
shall provide the Applicant a written decision as promptly as circumstances
permit. The appeal process is an administrative review of decisions made by an
authorized representative of the Commission.
2. Decisions. In considering appeals, the
Commission may take into account new information not previously available or
submitted; alleged errors in professional judgment; or alleged prejudicial
procedural errors. The Commission's decision may:
a. Reverse the appealed decision;
or
b. Affirm the appealed decision;
or
c. Resubmit the matter to the
Commission program staff for further consideration.
3. Final Administrative Remedy. The decision
of the Commission shall be the final administrative decision on the appeal. No
person shall be considered to have exhausted his or her administrative remedies
with respect to the certifications or decisions described in this §
3.5 of this Part until the
Commission has issued a final administrative decision in response to this
§
3.5 of
this Part. The Commission shall notify the Tax Division in writing of any
denial or revocation of a certification and of the final administrative
decision on the appeal.
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