Current through Register Vol. XLI, No. 50, December 13, 2024
Section 82-4-3 - Credit for Qualified Rehabilitated Residential Buildings Investment3.1. The West Virginia Division of Culture and History, State Historic Preservation Office administers the historic preservation program for the state. The Division's role in the application procedure shall be identical, or substantially similar, to that in 36 C.F.R. Part 67 and 26 C.F.R. Part 1, to the extent applicable. The Division also reviews the application for eligible expenditures and determines whether the rehabilitation meets the Standards. Approval of the application by the SHPO allows the owner to apply for the certified historic residential structure's tax credit when filing West Virginia annual income tax forms.3.2. The application to establish that the property is eligible to receive the credit for qualified rehabilitated residential buildings investment consists of three parts. The application may be obtained from the Division of Culture and History, Cultural Center, 1900 Kanawha Boulevard East, Charleston, WV 25305. 3.2.a. Historic Preservation Certification Application Part 1 - Evaluation of Significance. Review and approval of a completed Part 1 application establishes that the building is a certified historic structure. This application must be completed and submitted to the SHPO regardless of the current National Register eligibility status of the building. Part 1 applications may be submitted before work is planned for a particular building. Approval of the Part One application is strongly recommended, but not required, prior to commencement of work on the building. Subsequent to certification, the building must be formally nominated to the National Register of Historic Places. Final completion of the National Register nomination process must occur prior to approval of the Part 3 Application.3.2.b. Historic Preservation Certification Application Part 2 - Description of Rehabilitation. Part 2 of the application describes the proposed work. The applicant must describe the existing condition of each work item prior to activity and list all work items considered to be capital investment. The applicant must also describe the proposed or completed work for each item. Documentation should be complete so that the SHPO can fully review the rehabilitation project. Documentation must include written descriptions of work, photographs, and sketch plans showing location of work. Supporting documentation may also include plans and elevations-to-scale, as well as specifications. 3.2.b.A. All work described in the application will be reviewed by SHPO staff to insure that it conforms to the "Secretary of the Interior's Standards for Rehabilitation and Guidelines for the Rehabilitation of Historic Buildings." Although it is not required that the Part 2 application be submitted prior to the commencement of work, it is strongly recommended. Work completed prior to submission of the Part 2 application will not be excluded from adherence to the Secretary of the Interior's Standards for Rehabilitation and could be determined as not meeting the Standards.3.2.b.B. A fee will be charged by the Division of Culture and History to review each Historic Preservation Certification Application Part 2 - Description of Rehabilitation when the application is submitted to the SHPO for review. The Part 2 application will not be reviewed prior to payment. For all projects with a material rehabilitation cost of $10,000 or less, the review fee will be $50. For projects with a material rehabilitation cost of $10,001 to $100,000 the review fee will be $100. For projects with a material rehabilitation cost greater than $100,001 the review fee will be $500.3.2.c. Historic Preservation Certification Part 3 Application - Request for Certification of Completed Work must be submitted at the conclusion of the project before a final approval letter can be issued. It must include thorough photographic documentation of the completed work. If the building is not listed on the National Register of Historic Places individually or as a contributing building in an historic district listed on the National Register of Historic Places prior to its submission to the SHPO for approval, the Part 3 application will not be reviewed.3.3. Eligible rehabilitation expenses are those expenses incurred in connection with rehabilitation of a qualified building for items properly charged to a capital account. Only expenditures directly related to rehabilitation of an approved building are included. Acquisition costs, landscaping, additions, new construction outside the existing building envelope, sidewalks, drain fields, septic systems and similar work items are not allowable expenses. The SHPO will determine which rehabilitation expenses are eligible rehabilitation expenses.3.4. The amount expended to meet the material rehabilitation test must be spent within a 24 month period ending on December 31 of the year for which the credit is taken. Expenditures not occurring within the 24 month period are not eligible expenditures for the purpose of calculating the credit.3.5. A tax credit under the provisions of this rule is available from the State Tax Department to a new owner of a property if the approved property is acquired by the new owner prior to the property being placed in service. The credit will be available to the new owner only if the previous owner has not claimed the credit for the approved expenditures. The credit will be based on the eligible expenses of the original owner.