Bill Text: MI SB0054 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Individual income tax: credit; state historic preservation tax credit program; restore. Amends 1967 PA 281 (MCL 206.1 - 206.713) by adding secs. 266a & 675.
Spectrum: Bipartisan Bill
Status: (Passed) 2020-12-30 - Assigned Pa 0343'20 With Immediate Effect [SB0054 Detail]
Download: Michigan-2019-SB0054-Introduced.html
SENATE BILL No. 54
January 23, 2019, Introduced by Senators SCHMIDT, CHANG, HORN, ZORN and IRWIN and referred to the Committee on Finance.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.713) by adding sections 266a and 675.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 266a. (1) A qualified taxpayer with a rehabilitation plan
certified after December 31, 2018 may credit against the tax
imposed by this part the amount determined pursuant to subsection
(2) for the qualified expenditures for the rehabilitation of a
historic resource pursuant to the rehabilitation plan in the year
in which the certification of completed rehabilitation of the
historic resource is issued. Only those expenditures that are paid
or incurred during the time periods prescribed for the credit under
section 47(a)(2) of the internal revenue code and any related
treasury regulations shall be considered qualified expenditures.
(2) The credit allowed under this section shall be 25% of the
qualified expenditures that are eligible, or would have been
eligible except that the taxpayer elected to transfer the credit
under subsection (10), for the credit under section 47(a)(2) of the
internal revenue code if the taxpayer is eligible for the credit
under section 47(a)(2) of the internal revenue code or, if the
taxpayer is not eligible for the credit under section 47(a)(2) of
the internal revenue code, 25% of the qualified expenditures that
would qualify under section 47(a)(2) of the internal revenue code
except that the expenditures are made to a historic resource that
is not eligible for the credit under section 47(a)(2) of the
internal revenue code, subject to both of the following:
(a) A taxpayer with qualified expenditures that are eligible
for the credit under section 47(a)(2) of the internal revenue code
may not claim a credit under this section for those qualified
expenditures unless the taxpayer has claimed and received a credit
for those qualified expenditures under section 47(a)(2) of the
internal revenue code or the taxpayer has elected to transfer the
credit under subsection (10).
(b) A credit under this section shall be reduced by the amount
of a credit received by the taxpayer for the same qualified
expenditures under section 47(a)(2) of the internal revenue code.
(3) To be eligible for the credit under this section, the
taxpayer shall apply to and receive certification from the Michigan
state housing development authority that the historic significance,
the rehabilitation plan, and the completed rehabilitation of the
historic resource meet the criteria under subsection (6) and either
of the following:
(a) All of the following criteria:
(i) The historic resource contributes to the significance of
the historic district in which it is located.
(ii) Both the rehabilitation plan and completed rehabilitation
of the historic resource meet the federal secretary of the
interior's standards for rehabilitation and guidelines for
rehabilitating historic buildings, 36 CFR part 67.
(iii) All rehabilitation work has been done to or within the
walls, boundaries, or structures of the historic resource or to
historic resources located within the property boundaries of the
resource.
(b) The taxpayer has received certification from the national
park service that the historic resource's significance, the
rehabilitation plan, and the completed rehabilitation qualify for
the credit allowed under section 47(a)(2) of the internal revenue
code.
(4) If a qualified taxpayer is eligible for the credit allowed
under section 47(a)(2) of the internal revenue code, the qualified
taxpayer shall file for certification with the authority to qualify
for the credit allowed under section 47(a)(2) of the internal
revenue code. If the qualified taxpayer has previously filed for
certification with the authority to qualify for the credit allowed
under section 47(a)(2) of the internal revenue code, additional
filing for the credit allowed under this section is not required.
(5) The authority may inspect a historic resource at any time
during the rehabilitation process and may revoke certification of
completed rehabilitation if the rehabilitation was not undertaken
as represented in the rehabilitation plan or if unapproved
alterations to the completed rehabilitation are made during the 5
years after the tax year in which the credit was claimed. The
authority shall promptly notify the department of a revocation.
(6) Qualified expenditures for the rehabilitation of a
historic resource may be used to calculate the credit under this
section if the historic resource meets 1 of the criteria listed in
subdivision (a) and 1 of the criteria listed in subdivision (b):
(a) The resource is 1 of the following during the tax year in
which a credit under this section is claimed for those qualified
expenditures:
(i) Individually listed on the National Register of Historic
Places or state register of historic sites.
(ii) A contributing resource located within a historic
district listed on the National Register of Historic Places or the
state register of historic sites.
(iii) A contributing resource located within a historic
district designated by a local unit pursuant to an ordinance
adopted under the local historic districts act, 1970 PA 169, MCL
399.201 to 399.215.
(b) The resource meets 1 of the following criteria during the
tax year in which a credit under this section is claimed for those
qualified expenditures:
(i) The historic resource is located in a designated historic
district in a local unit of government with an existing ordinance
under the local historic districts act, 1970 PA 169, MCL 399.201 to
399.215.
(ii) The historic resource is located in an incorporated local
unit of government that does not have an ordinance under the local
historic districts act, 1970 PA 169, MCL 399.201 to 399.215, and
has a population of less than 5,000.
(iii) The historic resource is located in an unincorporated
local unit of government.
(iv) The historic resource is located in an incorporated local
unit of government that does not have an ordinance under the local
historic districts act, 1970 PA 169, MCL 399.201 to 399.215, and is
located within the boundaries of an association that has been
chartered under 1889 PA 39, MCL 455.51 to 455.72.
(v) The historic resource is subject to a historic
preservation easement.
(7) A credit amount assigned under section 675 may be claimed
against the partner's, member's, or shareholder's tax liability
under this part as provided in section 675.
(8) If the credit allowed under this section for the tax year
and any unused carryforward of the credit allowed by this section
exceed the taxpayer's tax liability for the tax year, that portion
that exceeds the tax liability for the tax year shall not be
refunded but may be carried forward to offset tax liability in
subsequent tax years for 10 years or until used up, whichever
occurs first. If the credit amount allowed is less than
$250,000.00, a qualified taxpayer may elect to forgo the carryover
period and receive a refund of the amount of the credit that
exceeds the qualified taxpayer's tax liability. The amount of the
refund shall be equal to 90% of the amount of the credit that
exceeds the qualified taxpayer's tax liability. An election under
this subsection shall be made in the year that a certificate of
completed rehabilitation is issued and shall be irrevocable.
(9) If a certificate of completed rehabilitation is revoked
under subsection (5) or if the historic resource is sold or
disposed of less than 5 years after being placed in service as
defined in section 47(b)(1) of the internal revenue code and
related treasury regulations, the following percentage of the
credit amount previously claimed relative to that historic resource
shall be added back to the tax liability of the qualified taxpayer
that received the certificate of completed rehabilitation and not
the assignee in the year of the revocation:
(a) If the revocation is less than 1 year after the historic
resource is placed in service, 100%.
(b) If the revocation is at least 1 year but less than 2 years
after the historic resource is placed in service, 80%.
(c) If the revocation is at least 2 years but less than 3
years after the historic resource is placed in service, 60%.
(d) If the revocation is at least 3 years but less than 4
years after the historic resource is placed in service, 40%.
(e) If the revocation is at least 4 years but less than 5
years after the historic resource is placed in service, 20%.
(f) If the revocation is at least 5 years or more after the
historic resource is placed in service, an addback to the qualified
taxpayer tax liability is not required.
(10) A qualified taxpayer may elect to forgo claiming the
credit and transfer the credit along with the ownership of the
property for which the credit may be claimed to a new owner. The
new owner shall be treated as the qualified taxpayer having
incurred the rehabilitation costs and shall be subject to the
recapture provisions under subsection (9) if the new owner sells or
disposes of the property within 5 years after the new owner
acquired the property. For purposes of this subsection and
subsection (9), the placed in service date for a new owner is the
date the new owner acquired the property for which the credit is
claimed.
(11) The authority may impose a fee to cover the
administrative cost of implementing the program under this section.
(12) The qualified taxpayer shall attach all of the following
to the qualified taxpayer's annual return under this part:
(a) Certification of completed rehabilitation.
(b) Certification of historic significance related to the
historic resource and the qualified expenditures used to claim a
credit under this section.
(c) A completed assignment form if the qualified taxpayer is
an assignee under section 675 of any portion of a credit allowed
under that section.
(13) The authority may promulgate rules to implement this
section pursuant to the administrative procedures act of 1969, 1969
PA 306, MCL 24.201 to 24.328.
(14) The total of the credits claimed under this section and
section 675 for a rehabilitation project shall not exceed 25% of
the total qualified expenditures eligible for the credit under this
section for that rehabilitation project.
(15) The authority shall report all of the following to the
legislature annually for the immediately preceding state fiscal
year:
(a) The fee schedule used by the center and the total amount
of fees collected.
(b) A description of each rehabilitation project certified.
(c) The location of each new and ongoing rehabilitation
project.
(16) As used in this section:
(a) "Contributing resource" means a historic resource that
contributes to the significance of the historic district in which
it is located.
(b) "Historic district" means an area, or group of areas not
necessarily having contiguous boundaries, that contains 1 resource
or a group of resources that are related by history, architecture,
archaeology, engineering, or culture.
(c) "Historic resource" means a publicly or privately owned
historic building, structure, site, object, feature, or open space
located within a historic district designated by the National
Register of Historic Places, the state register of historic sites,
or a local unit acting under the local historic districts act, 1970
PA 169, MCL 399.201 to 399.215; or that is individually listed on
the state register of historic sites or National Register of
Historic Places and includes all of the following:
(i) An owner-occupied personal residence or a historic
resource located within the property boundaries of that personal
residence.
(ii) An income-producing commercial, industrial, or
residential resource or a historic resource located within the
property boundaries of that resource.
(iii) A resource owned by a governmental body, nonprofit
organization, or tax-exempt entity that is used primarily by a
taxpayer lessee in a trade or business unrelated to the
governmental body, nonprofit organization, or tax-exempt entity and
that is subject to tax under this part.
(iv) A resource that is occupied or utilized by a governmental
body, nonprofit organization, or tax-exempt entity pursuant to a
long-term lease or lease with option to buy agreement.
(v) Any other resource that could benefit from rehabilitation.
(d) "Local unit" means a county, city, village, or township.
(e) "Long-term lease" means a lease term of at least 27.5
years for a residential resource or at least 31.5 years for a
nonresidential resource.
(f) "Michigan state housing development authority" or
"authority" means the public body corporate and politic created by
section 21 of the state housing development authority act of 1966,
1966 PA 346, MCL 125.1421.
(g) "Open space" means undeveloped land, a naturally
landscaped area, or a formal or man-made landscaped area that
provides a connective link or a buffer between other resources.
(h) "Person" means an individual, partnership, corporation,
association, governmental entity, or other legal entity.
(i) "Qualified expenditures" means capital expenditures that
qualify, or would qualify except that the taxpayer elected to
transfer the credit under subsection (10), for a rehabilitation
credit under section 47(a)(2) of the internal revenue code if the
taxpayer is eligible for the credit under section 47(a)(2) of the
internal revenue code or, if the taxpayer is not eligible for the
credit under section 47(a)(2) of the internal revenue code, the
qualified expenditures that would qualify under section 47(a)(2) of
the internal revenue code except that the expenditures are made to
a historic resource that is not eligible for the credit under
section 47(a)(2) of the internal revenue code, that were paid.
Qualified expenditures do not include capital expenditures for
nonhistoric additions to a historic resource except an addition
that is required by state or federal regulations that relate to
historic preservation, safety, or accessibility.
(j) "Qualified taxpayer" means a person that is an assignee
under section 675 or either owns the resource to be rehabilitated
or has a long-term lease agreement with the owner of the historic
resource and that has qualified expenditures for the rehabilitation
of the historic resource equal to or greater than 10% of the state
equalized valuation of the property. If the historic resource to be
rehabilitated is a portion of a historic or nonhistoric resource,
the state equalized valuation of only that portion of the property
shall be used for purposes of this subdivision. If the assessor for
the local tax collecting unit in which the historic resource is
located determines the state equalized valuation of that portion,
that assessor's determination shall be used for purposes of this
subdivision. If the assessor does not determine that state
equalized valuation of that portion, qualified expenditures, for
purposes of this subdivision, shall be equal to or greater than 5%
of the appraised value as determined by a certified appraiser. If
the historic resource to be rehabilitated does not have a state
equalized valuation, qualified expenditures for purposes of this
subdivision shall be equal to or greater than 5% of the appraised
value of the resource as determined by a certified appraiser.
(k) "Rehabilitation plan" means a plan for the rehabilitation
of a historic resource that meets the federal Secretary of the
Interior's standards for rehabilitation and guidelines for
rehabilitation of historic buildings under 36 CFR part 67.
Sec. 675. (1) A qualified taxpayer with a rehabilitation plan
certified after December 31, 2018 may credit against the tax
imposed by this part the amount determined pursuant to subsection
(2) for the qualified expenditures for the rehabilitation of a
historic resource pursuant to the rehabilitation plan in the year
in which the certification of completed rehabilitation of the
historic resource is issued. Only those expenditures that are paid
or incurred during the time periods prescribed for the credit under
section 47(a)(2) of the internal revenue code and any related
treasury regulations shall be considered qualified expenditures.
(2) The credit allowed under this subsection shall be 25% of
the qualified expenditures that are eligible, or would have been
eligible except that the taxpayer entered into an agreement under
subsection (10), for the credit under section 47(a)(2) of the
internal revenue code if the taxpayer is eligible for the credit
under section 47(a)(2) of the internal revenue code or, if the
taxpayer is not eligible for the credit under section 47(a)(2) of
the internal revenue code, 25% of the qualified expenditures that
would qualify under section 47(a)(2) of the internal revenue code
except that the expenditures are made to a historic resource that
is not eligible for the credit under section 47(a)(2) of the
internal revenue code, subject to both of the following:
(a) A taxpayer with qualified expenditures that are eligible
for the credit under section 47(a)(2) of the internal revenue code
may not claim a credit under this section for those qualified
expenditures unless the taxpayer has claimed and received a credit
for those qualified expenditures under section 47(a)(2) of the
internal revenue code or the taxpayer has entered into an agreement
under subsection (10).
(b) A credit under this subsection shall be reduced by the
amount of a credit received by the taxpayer for the same qualified
expenditures under section 47(a)(2) of the internal revenue code.
(3) To be eligible for the credit under subsection (2), the
taxpayer shall apply to and receive certification from the Michigan
state housing development authority that the historic significance,
the rehabilitation plan, and the completed rehabilitation of the
historic resource meet the criteria under subsection (6) and either
of the following:
(a) All of the following criteria:
(i) The historic resource contributes to the significance of
the historic district in which it is located.
(ii) Both the rehabilitation plan and completed rehabilitation
of the historic resource meet the federal Secretary of the
Interior's standards for rehabilitation and guidelines for
rehabilitating historic buildings, 36 CFR part 67.
(iii) All rehabilitation work has been done to or within the
walls, boundaries, or structures of the historic resource or to
historic resources located within the property boundaries of the
property.
(b) The taxpayer has received certification from the National
Park Service that the historic resource's significance, the
rehabilitation plan, and the completed rehabilitation qualify for
the credit allowed under section 47(a)(2) of the internal revenue
code.
(4) If a qualified taxpayer is eligible for the credit allowed
under section 47(a)(2) of the internal revenue code, the qualified
taxpayer shall file for certification with the authority to qualify
for the credit allowed under section 47(a)(2) of the internal
revenue code. If the qualified taxpayer has previously filed for
certification with the authority to qualify for the credit allowed
under section 47(a)(2) of the internal revenue code, additional
filing for the credit allowed under this section is not required.
(5) The authority may inspect a historic resource at any time
during the rehabilitation process and may revoke certification of
completed rehabilitation if the rehabilitation was not undertaken
as represented in the rehabilitation plan or if unapproved
alterations to the completed rehabilitation are made during the 5
years after the tax year in which the credit was claimed. The
authority shall promptly notify the department of a revocation.
(6) Qualified expenditures for the rehabilitation of a
historic resource may be used to calculate the credit under this
section if the historic resource meets 1 of the criteria listed in
subdivision (a) and 1 of the criteria listed in subdivision (b):
(a) The resource is 1 of the following during the tax year in
which a credit under this section is claimed for those qualified
expenditures:
(i) Individually listed on the National Register of Historic
Places or state register of historic sites.
(ii) A contributing resource located within a historic
district listed on the National Register of Historic Places or the
state register of historic sites.
(iii) A contributing resource located within a historic
district designated by a local unit pursuant to an ordinance
adopted under the local historic districts act, 1970 PA 169, MCL
399.201 to 399.215.
(b) The resource meets 1 of the following criteria during the
tax year in which a credit under this section is claimed for those
qualified expenditures:
(i) The historic resource is located in a designated historic
district in a local unit of government with an existing ordinance
under the local historic districts act, 1970 PA 169, MCL 399.201 to
399.215.
(ii) The historic resource is located in an incorporated local
unit of government that does not have an ordinance under the local
historic districts act, 1970 PA 169, MCL 399.201 to 399.215, and
has a population of less than 5,000.
(iii) The historic resource is located in an unincorporated
local unit of government.
(iv) The historic resource is located in an incorporated local
unit of government that does not have an ordinance under the local
historic districts act, 1970 PA 169, MCL 399.201 to 399.215, and is
located within the boundaries of an association that has been
chartered under 1889 PA 39, MCL 455.51 to 455.72.
(v) The historic resource is subject to a historic
preservation easement.
(7) A qualified taxpayer may assign all or any portion of the
credit allowed under this section. A credit assignment under this
subsection is irrevocable and shall be made in the tax year in
which a certificate of completed rehabilitation is issued. A
qualified taxpayer may claim a portion of a credit and assign the
remaining amount. If the qualified taxpayer both claims and assigns
portions of the credit, the qualified taxpayer shall claim the
portion it claims in the tax year in which a certificate of
completed rehabilitation is issued pursuant to this section. An
assignee may subsequently assign the credit or any portion of the
credit assigned under this subsection to 1 or more assignees. An
assignment or subsequent reassignment of a credit can be made in
the year the certificate of completed rehabilitation is issued. A
credit assignment or subsequent reassignment under this section
shall be made on a form prescribed by the department. The
department or its designee shall review and issue a completed
assignment or reassignment certificate to the assignee or
reassignee. A credit amount assigned under this subsection may be
claimed against the assignees' tax under this part or part 1. An
assignee or subsequent reassignee shall attach a copy of the
completed assignment certificate to the annual return required to
be filed under this part for the tax year in which the assignment
or reassignment is made and the assignee or reassignee first claims
the credit, which shall be the same tax year.
(8) If the credit allowed under this section for the tax year
and any unused carryforward of the credit allowed by this section
exceed the taxpayer's tax liability for the tax year, that portion
that exceeds the tax liability for the tax year shall not be
refunded but may be carried forward to offset tax liability in
subsequent tax years for 10 years or until used up, whichever
occurs first. If a qualified taxpayer has an unused carryforward of
a credit under this section, the amount otherwise added under
subsection (9) to the qualified taxpayer's tax liability may
instead be used to reduce the qualified taxpayer's carryforward
under this section. If the credit amount allowed is less than
$250,000.00, a qualified taxpayer may elect to forgo the carryover
period and receive a refund of the amount of the credit that
exceeds the qualified taxpayer's tax liability. The amount of the
refund shall be equal to 90% of the amount of the credit that
exceeds the qualified taxpayer's tax liability. An election under
this subsection shall be made in the year that a certificate of
completed rehabilitation is issued and shall be irrevocable.
(9) Except as otherwise provided under subsection (10), if a
certificate of completed rehabilitation is revoked under subsection
(5) or a historic resource is sold or disposed of less than 5 years
after the historic resource is placed in service as defined in
section 47(b)(1) of the internal revenue code and related treasury
regulations, the following percentage of the credit amount
previously claimed relative to that historic resource shall be
added back to the tax liability of the qualified taxpayer that
received the certificate of completed rehabilitation and not the
assignee in the year of the revocation:
(a) If the revocation is less than 1 year after the historic
resource is placed in service, 100%.
(b) If the revocation is at least 1 year but less than 2 years
after the historic resource is placed in service, 80%.
(c) If the revocation is at least 2 years but less than 3
years after the historic resource is placed in service, 60%.
(d) If the revocation is at least 3 years but less than 4
years after the historic resource is placed in service, 40%.
(e) If the revocation is at least 4 years but less than 5
years after the historic resource is placed in service, 20%.
(f) If the revocation is at least 5 years or more after the
historic resource is placed in service, an addback to the qualified
taxpayer tax liability is not required.
(10) Subsection (9) shall not apply if the qualified taxpayer
enters into a written agreement with the authority that will allow
for the transfer or sale of the historic resource and provides the
following:
(a) Reasonable assurance that subsequent to the transfer the
property will remain a historic resource during the 5-year period
after the historic resource is placed in service.
(b) A method that the department can recover an amount from
the taxpayer equal to the appropriate percentage of credit added
back as described under subsection (9).
(c) An encumbrance on the title to the historic resource being
sold or transferred, stating that the property must remain a
historic resource throughout the 5-year period after the historic
resource is placed in service.
(d) A provision for the payment by the taxpayer of all legal
and professional fees associated with the drafting, review, and
recording of the written agreement required under this subsection.
(11) The authority may impose a fee to cover the
administrative cost of implementing the program under this section.
(12) The qualified taxpayer shall attach all of the following
to the qualified taxpayer's annual return required under this part,
if applicable, on which the credit is claimed:
(a) Certification of completed rehabilitation.
(b) Certification of historic significance related to the
historic resource and the qualified expenditures used to claim a
credit under this section.
(c) A completed assignment form if the qualified taxpayer or
assignee has assigned any portion of a credit allowed under this
section or if the taxpayer is an assignee of any portion of a
credit allowed under this section.
(13) The authority may promulgate rules to implement this
section pursuant to the administrative procedures act of 1969, 1969
PA 306, MCL 24.201 to 24.328.
(14) The total of the credits claimed under subsection (2) and
section 266a for a rehabilitation project shall not exceed 25% of
the total qualified expenditures eligible for the credit under
subsection (2) for that rehabilitation project.
(15) The authority shall report all of the following to the
legislature annually for the immediately preceding state fiscal
year:
(a) The fee schedule used by the authority and the total
amount of fees collected.
(b) A description of each rehabilitation project certified.
(c) The location of each new and ongoing rehabilitation
project.
(16) As used in this section:
(a) "Contributing resource" means a historic resource that
contributes to the significance of the historic district in which
it is located.
(b) "Historic district" means an area, or group of areas not
necessarily having contiguous boundaries, that contains 1 resource
or a group of resources that are related by history, architecture,
archaeology, engineering, or culture.
(c) "Historic resource" means a publicly or privately owned
historic building, structure, site, object, feature, or open space
located within a historic district designated by the National
Register of Historic Places, the state register of historic sites,
or a local unit acting under the local historic districts act, 1970
PA 169, MCL 399.201 to 399.215, or that is individually listed on
the state register of historic sites or National Register of
Historic Places, and includes all of the following:
(i) An owner-occupied personal residence or a historic
resource located within the property boundaries of that personal
residence.
(ii) An income-producing commercial, industrial, or
residential resource or a historic resource located within the
property boundaries of that resource.
(iii) A resource owned by a governmental body, nonprofit
organization, or tax-exempt entity that is used primarily by a
taxpayer lessee in a trade or business unrelated to the
governmental body, nonprofit organization, or tax-exempt entity and
that is subject to tax under this act.
(iv) A resource that is occupied or utilized by a governmental
body, nonprofit organization, or tax-exempt entity pursuant to a
long-term lease or lease with option to buy agreement.
(v) Any other resource that could benefit from rehabilitation.
(d) "Local unit" means a county, city, village, or township.
(e) "Long-term lease" means a lease term of at least 27.5
years for a residential resource or at least 31.5 years for a
nonresidential resource.
(f) "Michigan state housing development authority" or
"authority" means the public body corporate and politic created by
section 21 of the state housing development authority act of 1966,
1966 PA 346, MCL 125.1421.
(g) "Open space" means undeveloped land, a naturally
landscaped area, or a formal or man-made landscaped area that
provides a connective link or a buffer between other resources.
(h) "Person" means an individual, partnership, corporation,
association, governmental entity, or other legal entity.
(i) "Qualified expenditures" means capital expenditures that
qualify, or would qualify except that the taxpayer entered into an
agreement under subsection (10), for a rehabilitation credit under
section 47(a)(2) of the internal revenue code if the taxpayer is
eligible for the credit under section 47(a)(2) of the internal
revenue code or, if the taxpayer is not eligible for the credit
under section 47(a)(2) of the internal revenue code, the qualified
expenditures that would qualify under section 47(a)(2) of the
internal revenue code except that the expenditures are made to a
historic resource that is not eligible for the credit under section
47(a)(2) of the internal revenue code that were paid. Qualified
expenditures do not include capital expenditures for nonhistoric
additions to a historic resource except an addition that is
required by state or federal regulations that relate to historic
preservation, safety, or accessibility.
(j) "Qualified taxpayer" means a person that either owns the
resource to be rehabilitated or has a long-term lease agreement
with the owner of the historic resource and that has qualified
expenditures for the rehabilitation of the historic resource equal
to or greater than 10% of the state equalized valuation of the
property. If the historic resource to be rehabilitated is a portion
of a historic or nonhistoric resource, the state equalized
valuation of only that portion of the property shall be used for
purposes of this subdivision. If the assessor for the local tax
collecting unit in which the historic resource is located
determines the state equalized valuation of that portion, that
assessor's determination shall be used for purposes of this
subdivision. If the assessor does not determine that state
equalized valuation of that portion, qualified expenditures, for
purposes of this subdivision, shall be equal to or greater than 5%
of the appraised value as determined by a certified appraiser. If
the historic resource to be rehabilitated does not have a state
equalized valuation, qualified expenditures for purposes of this
subdivision shall be equal to or greater than 5% of the appraised
value of the resource as determined by a certified appraiser.
(k) "Rehabilitation plan" means a plan for the rehabilitation
of a historic resource that meets the federal Secretary of the
Interior's standards for rehabilitation and guidelines for
rehabilitation of historic buildings under 36 CFR part 67.
