Title 44
Taxation

Chapter 33.2
Historic Structures — Tax Credit

§ 44-33.2-2. Definitions.

As used in this chapter:

(1) “Certified historic structure” means a property which is located in the state of Rhode Island and is:

(i) Listed individually on the National Register of Historic Places; or

(ii) Listed individually in the state register of historic places; or

(iii) Located in a registered historic district and certified by either the commission or Secretary of the Interior as being of historic significance to the district.

(2) “Certified rehabilitation” means any rehabilitation of a certified historic structure consistent with the historic character of such property or the district in which the property is located as determined by the commission guidelines.

(3) “Commission” means the Rhode Island historical preservation and heritage commission created pursuant to § 42-45-2.

(4) “Exempt from real property tax” means, with respect to any certified historic structure, that the structure is exempt from taxation pursuant to § 44-3-3.

(5) “Holding period” means twenty-four (24) months after the commission issues a certificate of completed work to the owner. In the case of a rehabilitation which may reasonably be expected to be completed in phases as described in subdivision (10) of this section, “holding period” shall be extended to include a period of time beginning on the date of issuance of a certificate of completed work for the first phase or phases for which a certificate of completed work is issued and continuing until the expiration of twenty-four (24) months after the certificate of completed work issued for the last phase.

(6) “Placed in service” means that substantial rehabilitation work has been completed which would allow for occupancy of the entire structure or some identifiable portion of the structure, or the owner has commenced depreciation of the qualified rehabilitation expenditures, whichever occurs first.

(7) “Principal residence” means the principal residence of the owner within the meaning of § 121 of the Internal Revenue Code [26 U.S.C. § 121] or any successor provision.

(8) “Qualified rehabilitation expenditures” means any amounts expended in the rehabilitation of a certified historic structure properly capitalized to the building and either: (i) depreciable under the Internal Revenue Code, 26 U.S.C. § 1 et seq., or (ii) made with respect to property (other than the principal residence of the owner) held for sale by the owner. Fees pursuant to § 44-33.2-4(d) are not qualified rehabilitation expenditures. Notwithstanding the foregoing, except in the case of a nonprofit corporation, there will be deducted from qualified rehabilitation expenditures for the purposes of calculating the tax credit any funds made available to the person (including any entity specified in § 44-33.2-3(a)) incurring the qualified rehabilitation expenditures in the form of a direct grant from a federal, state or local governmental entity or agency or instrumentality of government.

(9) “Registered historic district” means any district listed in the National Register of Historic Places, or the state register of historic places.

(10) “Substantial rehabilitation” means, with respect to a certified historic structure, that the qualified rehabilitation expenses of the building during the twenty-four (24) month period selected by the taxpayer ending with or within the taxable year exceed fifty percent (50%) of the adjusted basis in such building and its structural components as of the beginning of such period. In the case of any rehabilitation, which may reasonably be expected to be completed in phases set forth in architectural plans and specifications completed before the rehabilitation begins, the above definition shall be applied by substituting “sixty (60) month period” for “twenty-four (24) month period”.