59-7-609 - Historic preservation credit.
59-7-609. Historic preservation credit.
(1) (a) For tax years beginning January 1, 1993, and thereafter, there is allowed to ataxpayer subject to Section 59-7-104, as a credit against the tax due, an amount equal to 20% ofqualified rehabilitation expenditures, costing more than $10,000, incurred in connection with anyresidential certified historic building. When qualifying expenditures of more than $10,000 areincurred, the credit allowed by this section shall apply to the full amount of expenditures.
(b) All rehabilitation work to which the credit may be applied shall be approved by theState Historic Preservation Office prior to completion of the rehabilitation project as meeting theSecretary of the Interior's Standards for Rehabilitation so that the office can provide correctivecomments to the taxpayer in order to preserve the historical qualities of the building.
(c) Any amount of credit remaining may be carried forward to each of the five taxableyears following the qualified expenditures.
(d) The commission, in consultation with the Division of State History, shall promulgaterules to implement this section.
(2) As used in this section:
(a) "Certified historic building" means a building that is listed on the National Register ofHistoric Places within three years of taking the credit under this section or that is located in aNational Register Historic District and the building has been designated by the Division of StateHistory as being of significance to the district.
(b) (i) "Qualified rehabilitation expenditures" means any amount properly chargeable tothe rehabilitation and restoration of the physical elements of the building, including the historicdecorative elements, and the upgrading of the structural, mechanical, electrical, and plumbingsystems to applicable codes.
(ii) "Qualified rehabilitation expenditures" does not include expenditures related to:
(A) the taxpayer's personal labor;
(B) cost of acquisition of the property;
(C) any expenditure attributable to the enlargement of an existing building;
(D) rehabilitation of a certified historic building without the approval required inSubsection (1)(b); or
(E) any expenditure attributable to landscaping and other site features, outbuildings,garages, and related features.
(c) "Residential" means a building used for residential use, either owner occupied orincome producing.
Enacted by Chapter 42, 1995 General Session