{"data":{"id":"us-ky/krs-171.396","jurisdiction":"us-ky","citation":"KRS 171.396","heading":"Definitions for KRS 171.396, 171.3961, 171.397, and 171.398.","body":"As used in this section and KRS 171.3961, 171.397, and 171.398:\n(1) \"Affordable\" means the occupant's housing costs, including utilities, total thirty\npercent (30%) or less of the occupant's gross income;\n(2) \"Certified historic structure\" means a structure that is located within the\nCommonwealth of Kentucky that is:\n(a) Listed individually on the National Register of Historic Places; or\n(b) Located in a historic district listed on t he National Register of Historic Places\nand is certified by the council as contributing to the historic significance of\nthe district;\n(3) \"Certified rehabilitation\" means a completed substantial rehabilitation of a certified\nhistoric structure that the cou ncil certifies meets the United States Secretary of the\nInterior's Standards for Rehabilitation;\n(4) \"Certified rehabilitation credit cap\" means an annual amount of one hundred\nmillion dollars ($100,000,000) for applications received on or after:\n(a) April 30, 2022, but before April 30, 2026, allocated with:\n1. Twenty-five percent (25%) of the credit cap awarded to owner -occupied\nresidential property; and\n2. Seventy-five percent (75%) of the credit cap awarded to property other\nthan owner -occupied residential property, which includes the major\ncertified rehabilitation allowed under KRS 171.3963; and\n(b) April 30, 2026, but before April 15, 2027, and on or befo re each April 15\nthereafter, allocated with:\n1. Fifteen percent (15%) of the credit cap awarded to owner -occupied\nresidential property; and\n2. Eighty-five percent (85%) of the credit cap awarded to property other\nthan owner -occupied residential property, i ncluding commercial\nresidential property;\nplus any amounts added to the certified rehabilitation credit cap pursuant to KRS\n171.397(2)(c) and 171.398;\n(5) \"Commercial residential property\" means a certified historic structure that:\n(a) Is not owner-occupied residential property;\n(b) Has a minimum of fifty percent (50%) of its square footage designated to\nresidential space which shall be available for lease, rent, or sale upon\ncompletion of the rehabilitation; and\n(c) Is affordable to individuals earning eighty percent (80%) or less of the median\nfamily income for a minimum of five (5) years after the building is placed in\nservice;\n(6) \"Council\" means the Kentucky Heritage Council;\n(7) \"Disqualifying work\" means work that is performed within three (3) years of the\ncompletion of the certified rehabilitation that, if performed as part of the\nrehabilitation certified under KRS 171.397 and 171.398, would have made the\nrehabilitation ineligible for certification;\n(8) \"Exempt entity\" means any tax exempt organizati on pursuant to sec. 501(c)(3) of\nthe Internal Revenue Code, any political subdivision of the Commonwealth, any\nstate or local agency, board, or commission, or any quasi-governmental entity;\n(9) \"Local government\" means a city, county, urban -county, charter  county, or\nconsolidated local government;\n(10) \"Median family income\" means the median family income for the county in which\nthe residence is located as determined by the most recent American Community\nSurvey Five-Year Estimate;\n(11) \"Owner-occupied resid ential property\" means a building or portion thereof,\ncondominium, or cooperative occupied by the owner as his or her principal\nresidence;\n(12) \"Qualified rehabilitation expense\" means any amount that is properly chargeable to\na capital account, whether or  not depreciation is allowed under Section 168 of the\nInternal Revenue Code, and is expended at any time in connection with the certified\nrehabilitation of a certified historic structure. It shall include the cost of restoring\nlandscaping and fencing that contributes to the historic significance of this\nstructure, but shall not include the cost of acquisition of a certified historic\nstructure, enlargement of or additions to an existing building, or the purchase of\npersonal property;\n(13) \"Substantial rehabilitation\" means rehabilitation of a certified historic structure for\nwhich the qualified rehabilitation expenses, during a twenty -four (24) month period\nselected by the taxpayer or exempt entity, ending with or within the taxable year,\nexceed:\n(a) Twenty t housand dollars ($20,000) for an owner -occupied residential\nproperty; or\n(b) For all other property, the greater of:\n1. The adjusted basis of the structure; or\n2. Twenty thousand dollars ($20,000);\n(14) \"Taxpayer\" means any individual, corporation, limited  liability company, business\ndevelopment corporation, partnership, limited partnership, sole proprietorship,\nassociation, joint stock company, receivership, trust, professional service\norganization, or other legal entity through which business is conducted that:\n(a) Elects to claim the credit on a return and receive a refund as provided in KRS\n171.397(2)(b)2.a. and 171.398; or\n(b) Is the recipient of a credit which is transferred as provided in KRS\n171.397(2)(b)2.b. and 171.398; and\n(15) \"Qualified purchased historic home\" means any substantially rehabilitated certified\nhistoric structure if:\n(a) The taxpayer claiming the credit authorized under KRS 171.397 and 171.398\nis the first purchaser of the structure after the date of completion of the\nsubstantial rehabilitation;\n(b) The structure or a portion thereof will be the principal residence of the\ntaxpayer; and\n(c) No credit was allowed to the seller under this section.\nA qualified purchased historic home shall be deemed owner -occupied residential\nproperty for purposes of this section.","path":["KRS Chapter 171"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56936","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:22Z","sha256":"9392ad679870ae6fee53304e5f7358f2fe08c6195ceadaf91765d834092b5cf3","source_id":"us-ky","stale":false,"prev":"us-ky/krs-171.395","next":"us-ky/krs-171.3961"},"notice":"GroundRules: Original legal text. Not legal advice."}