Kentucky Statutes 171.396 – Definitions for KRS 171.396, 171.3961, and 171.397
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As used in this section and KRS § 171.3961 and KRS § 171.397:
(1) “Certified historic structure” means a structure that is located within the
Commonwealth of Kentucky that is:
(a) Listed individually on the National Register of Historic Places; or
(b) Located in a historic district listed on the National Register of Historic Places and is certified by the council as contributing to the historic significance of the district;
(2) “Certified rehabilitation” means a completed substantial rehabilitation of a certified historic structure that the council certifies meets the United States Secretary of the Interior’s Standards for Rehabilitation;
(3) “Certified rehabilitation credit cap” means an annual amount of:
(a) Three million dollars ($3,000,000) for applications received prior to April 30,
2010;
(b) Five million dollars ($5,000,000) for applications received on or after April
30, 2010, but before April 30, 2022; and
(c) One hundred million dollars ($100,000,000) for applications received on or after April 30, 2022, allocated with:
1. Twenty-five percent (25%) of the credit cap awarded to owner-occupied residential property; and
2. Seventy-five percent (75%) of the credit cap awarded to property other than owner-occupied residential property, which includes the major certified rehabilitation allowed under KRS § 171.3963;
plus any amount added to the certified rehabilitation credit cap pursuant to KRS
171.397(2)(c);
(4) “Council” means the Kentucky Heritage Council;
(5) “Disqualifying work” means work that is performed within three (3) years of the completion of the certified rehabilitation that, if performed as part of the rehabilitation certified under KRS § 171.397, would have made the rehabilitation ineligible for certification;
(6) “Exempt entity” means any tax exempt organization pursuant to sec. 501(c)(3) of the Internal Revenue Code, any political subdivision of the Commonwealth, any state or local agency, board, or commission, or any quasi-governmental entity;
(7) “Local government” means a city, county, urban-county, charter county, or consolidated local government;
(8) “Owner-occupied residential property” means a building or portion thereof, condominium, or cooperative occupied by the owner as his or her principal residence;
(9) “Qualified rehabilitation expense” means any amount that is properly chargeable to a capital account, whether or not depreciation is allowed under Section 168 of the Internal Revenue Code, and is expended in connection with the certified
rehabilitation of a certified historic structure. It shall include the cost of restoring landscaping and fencing that contributes to the historic significance of this structure, but shall not include the cost of acquisition of a certified historic structure, enlargement of or additions to an existing building, or the purchase of personal property;
(10) “Substantial rehabilitation” means rehabilitation of a certified historic structure for which the qualified rehabilitation expenses, during a twenty-four (24) month period selected by the taxpayer or exempt entity, ending with or within the taxable year, exceed:
(a) Twenty thousand dollars ($20,000) for an owner-occupied residential property; or
(b) For all other property, the greater of:
1. The adjusted basis of the structure; or
2. Twenty thousand dollars ($20,000);
(11) “Taxpayer” means any individual, corporation, limited liability company, business development corporation, partnership, limited partnership, sole proprietorship, association, joint stock company, receivership, trust, professional service organization, or other legal entity through which business is conducted that:
(a) Elects to claim the credit on a return and receive a refund as provided in KRS
171.397(2)(b)2.a.; or
(b) Is the recipient of a credit which is transferred as provided in KRS
171.397(2)(b)2.b.; and
(12) “Qualified purchased historic home” means any substantially rehabilitated certified historic structure if:
(a) The taxpayer claiming the credit authorized under KRS § 171.397 is the first purchaser of the structure after the date of completion of the substantial rehabilitation;
(b) The structure or a portion thereof will be the principal residence of the taxpayer; and
(c) No credit was allowed to the seller under this section.
A qualified purchased historic home shall be deemed owner-occupied residential property for purposes of this section.
Effective: June 29, 2021
History: Amended 2021 Ky. Acts ch. 156, sec. 30, effective June 29, 2021. — Amended
2014 Ky. Acts ch. 102, sec. 19, effective July 15, 2014. — Amended 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 33, effective June 26, 2009. — Amended 2006 Ky. Acts ch.
149, sec. 224, effective July 12, 2006. — Created 2005 Ky. Acts ch. 168, sec. 150, effective March 18, 2005.
Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 165, provides that this section shall apply to tax years beginning on or after January 1,
2005.
(1) “Certified historic structure” means a structure that is located within the
Terms Used In Kentucky Statutes 171.396
- City: includes town. See Kentucky Statutes 446.010
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Month: means calendar month. See Kentucky Statutes 446.010
- Owner: when applied to any animal, means any person having a property interest in such animal. See Kentucky Statutes 446.010
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Partnership: includes both general and limited partnerships. See Kentucky Statutes 446.010
- Personal property: All property that is not real property.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Year: means calendar year. See Kentucky Statutes 446.010
Commonwealth of Kentucky that is:
(a) Listed individually on the National Register of Historic Places; or
(b) Located in a historic district listed on the National Register of Historic Places and is certified by the council as contributing to the historic significance of the district;
(2) “Certified rehabilitation” means a completed substantial rehabilitation of a certified historic structure that the council certifies meets the United States Secretary of the Interior’s Standards for Rehabilitation;
(3) “Certified rehabilitation credit cap” means an annual amount of:
(a) Three million dollars ($3,000,000) for applications received prior to April 30,
2010;
(b) Five million dollars ($5,000,000) for applications received on or after April
30, 2010, but before April 30, 2022; and
(c) One hundred million dollars ($100,000,000) for applications received on or after April 30, 2022, allocated with:
1. Twenty-five percent (25%) of the credit cap awarded to owner-occupied residential property; and
2. Seventy-five percent (75%) of the credit cap awarded to property other than owner-occupied residential property, which includes the major certified rehabilitation allowed under KRS § 171.3963;
plus any amount added to the certified rehabilitation credit cap pursuant to KRS
171.397(2)(c);
(4) “Council” means the Kentucky Heritage Council;
(5) “Disqualifying work” means work that is performed within three (3) years of the completion of the certified rehabilitation that, if performed as part of the rehabilitation certified under KRS § 171.397, would have made the rehabilitation ineligible for certification;
(6) “Exempt entity” means any tax exempt organization pursuant to sec. 501(c)(3) of the Internal Revenue Code, any political subdivision of the Commonwealth, any state or local agency, board, or commission, or any quasi-governmental entity;
(7) “Local government” means a city, county, urban-county, charter county, or consolidated local government;
(8) “Owner-occupied residential property” means a building or portion thereof, condominium, or cooperative occupied by the owner as his or her principal residence;
(9) “Qualified rehabilitation expense” means any amount that is properly chargeable to a capital account, whether or not depreciation is allowed under Section 168 of the Internal Revenue Code, and is expended in connection with the certified
rehabilitation of a certified historic structure. It shall include the cost of restoring landscaping and fencing that contributes to the historic significance of this structure, but shall not include the cost of acquisition of a certified historic structure, enlargement of or additions to an existing building, or the purchase of personal property;
(10) “Substantial rehabilitation” means rehabilitation of a certified historic structure for which the qualified rehabilitation expenses, during a twenty-four (24) month period selected by the taxpayer or exempt entity, ending with or within the taxable year, exceed:
(a) Twenty thousand dollars ($20,000) for an owner-occupied residential property; or
(b) For all other property, the greater of:
1. The adjusted basis of the structure; or
2. Twenty thousand dollars ($20,000);
(11) “Taxpayer” means any individual, corporation, limited liability company, business development corporation, partnership, limited partnership, sole proprietorship, association, joint stock company, receivership, trust, professional service organization, or other legal entity through which business is conducted that:
(a) Elects to claim the credit on a return and receive a refund as provided in KRS
171.397(2)(b)2.a.; or
(b) Is the recipient of a credit which is transferred as provided in KRS
171.397(2)(b)2.b.; and
(12) “Qualified purchased historic home” means any substantially rehabilitated certified historic structure if:
(a) The taxpayer claiming the credit authorized under KRS § 171.397 is the first purchaser of the structure after the date of completion of the substantial rehabilitation;
(b) The structure or a portion thereof will be the principal residence of the taxpayer; and
(c) No credit was allowed to the seller under this section.
A qualified purchased historic home shall be deemed owner-occupied residential property for purposes of this section.
Effective: June 29, 2021
History: Amended 2021 Ky. Acts ch. 156, sec. 30, effective June 29, 2021. — Amended
2014 Ky. Acts ch. 102, sec. 19, effective July 15, 2014. — Amended 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 33, effective June 26, 2009. — Amended 2006 Ky. Acts ch.
149, sec. 224, effective July 12, 2006. — Created 2005 Ky. Acts ch. 168, sec. 150, effective March 18, 2005.
Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 165, provides that this section shall apply to tax years beginning on or after January 1,
2005.