KRS 171.396: Definitions for KRS 171.396, 171.3961, 171.397, and 171.398.

As used in this section and KRS 171.3961, 171.397, and 171.398:

(1) "Affordable" means the occupant's housing costs, including utilities, total thirty

percent (30%) or less of the occupant's gross income;

(2) "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 t he National Register of Historic Places

and is certified by the council as contributing to the historic significance of

the district;

(3) "Certified rehabilitation" means a completed substantial rehabilitation of a certified

historic structure that the cou ncil certifies meets the United States Secretary of the

Interior's Standards for Rehabilitation;

(4) "Certified rehabilitation credit cap" means an annual amount of one hundred

million dollars ($100,000,000) for applications received on or after:

(a) April 30, 2022, but before April 30, 2026, 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; and

(b) April 30, 2026, but before April 15, 2027, and on or befo re each April 15

thereafter, allocated with:

1. Fifteen percent (15%) of the credit cap awarded to owner -occupied

residential property; and

2. Eighty-five percent (85%) of the credit cap awarded to property other

than owner -occupied residential property, i ncluding commercial

residential property;

plus any amounts added to the certified rehabilitation credit cap pursuant to KRS

171.397(2)(c) and 171.398;

(5) "Commercial residential property" means a certified historic structure that:

(a) Is not owner-occupied residential property;

(b) Has a minimum of fifty percent (50%) of its square footage designated to

residential space which shall be available for lease, rent, or sale upon

completion of the rehabilitation; and

(c) Is affordable to individuals earning eighty percent (80%) or less of the median

family income for a minimum of five (5) years after the building is placed in

service;

(6) "Council" means the Kentucky Heritage Council;

(7) "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 and 171.398, would have made the

rehabilitation ineligible for certification;

(8) "Exempt entity" means any tax exempt organizati on 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;

(9) "Local government" means a city, county, urban -county, charter county, or

consolidated local government;

(10) "Median family income" means the median family income for the county in which

the residence is located as determined by the most recent American Community

Survey Five-Year Estimate;

(11) "Owner-occupied resid ential property" means a building or portion thereof,

condominium, or cooperative occupied by the owner as his or her principal

residence;

(12) "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 at any time 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;

(13) "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 t housand 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);

(14) "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. and 171.398; or

(b) Is the recipient of a credit which is transferred as provided in KRS

171.397(2)(b)2.b. and 171.398; and

(15) "Qualified purchased historic home" means any substantially rehabilitated certified

historic structure if:

(a) The taxpayer claiming the credit authorized under KRS 171.397 and 171.398

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.