§ 105-129.35. Credit for rehabilitating income-producing historic structure.

Article 3D.

Historic RehabilitationTax Credits.

§ 105‑129.35.  Creditfor rehabilitating income‑producing historic structure.

(a)        Credit. – Ataxpayer who is allowed a federal income tax credit under section 47 of theCode for making qualified rehabilitation expenditures for a certified historicstructure located in this State is allowed a credit equal to twenty percent(20%) of the expenditures that qualify for the federal credit. If the certifiedhistoric structure is a facility that at one time served as a State trainingschool for juvenile offenders, the amount of the credit is equal to fortypercent (40%) of the expenditures that qualify for the federal credit. To claimthe credit allowed by this subsection, the taxpayer must provide a copy of thecertification obtained from the State Historic Preservation Officer verifyingthat the historic structure has been rehabilitated in accordance with thissubsection.

(b)        Notwithstanding theprovisions of G.S. 105‑131.8 and G.S. 105‑269.15, a pass‑throughentity that qualifies for the credit provided in this section may allocate thecredit among any of its owners in its discretion as long as an owner's adjustedbasis in the pass‑through entity, as determined under the Code, at theend of the taxable year in which the certified historic structure is placed inservice, is at least forty percent (40%) of the amount of credit allocated tothat owner. Owners to whom a credit is allocated are allowed the credit as ifthey had qualified for the credit directly. A pass‑through entity and itsowners must include with their tax returns for every taxable year in which anallocated credit is claimed a statement of the allocation made by the pass‑throughentity and the allocation that would have been required under G.S. 105‑131.8or G.S. 105‑269.15.

(c)        Definitions. – Thefollowing definitions apply in this section:

(1)        Certified historicstructure. – Defined in section 47 of the Code.

(2)        Pass‑throughentity. – Defined in G.S. 105‑228.90.

(3)        Qualifiedrehabilitation expenditures. – Defined in section 47 of the Code.

(4)        State HistoricPreservation Officer. – Defined in G.S. 105‑129.36. (1993, c. 527, ss. 1, 2; 1997‑139,ss. 1, 2; 1998‑98, ss. 36, 69; 1999‑389, ss. 2, 5, 6; 2001‑476,s. 19(a); 2003‑284, s. 35A.1; 2003‑415, ss. 1, 2; 2003‑416,s. 4(c); 2004‑170, s. 14; 2006‑40, s. 2; 2007‑461, s. 1.)