As used herein, unless the context otherwise requires:

1. (1) “Act” means the Arkansas Historic Rehabilitation Income Tax Credit Act, Arkansas Code § 26-51-2201 et seq., as amended by Acts 2015, No. 567;
2. (2) “AHPP” means the Arkansas Historic Preservation Program, an agency of the Division of Arkansas Heritage;

3. (3)

   1. (A) “Application” means the Arkansas Historic Rehabilitation Tax Credit Application and constitutes a written plan for development and operation of a rehabilitation project.

   2. (B) Applications are submitted in three (3) parts:

      1. (i)

         1. (a) (a) Determination of Eligibility (Part 1) is used by the Arkansas Historic Preservation Program to determine whether a property is of historic significance and eligible to receive tax credits.
         2. (b) (b) Upon approval of a Part 1, the Arkansas Historic Preservation Program will issue a certificate of eligibility;
      2. (ii) Proposed Rehabilitation Project (Part 2) is used by the Arkansas Historic Preservation Program to determine whether a proposed rehabilitation project will comply with the United States Secretary of the Interior’s Standards for Rehabilitation; and
      3. (iii) Completed Rehabilitation Project (Part 3) is used by the Arkansas Historic Preservation Program to determine whether a completed rehabilitation project successfully complied with the United States Secretary of the Interior’s Standards for Rehabilitation.
   3. (C) Upon approval of a Part 3, the Arkansas Historic Preservation Program will issue a certificate of completion.
   4. (D) Holders will submit certificates of completion to the appropriate taxing authority to claim tax credits;
4. (4) “Certified rehabilitation” means a substantial rehabilitation of an eligible property, consistent with the historic character of the eligible property and, where applicable, with the district in which such structure is located;

5. (5)

   1. (A) “Eligible property” means property that is located in Arkansas that is:

      1. (i) Income-producing property that:

         1. (a) (a) Qualifies as a certified historic structure under 26 U.S.C. § 47, as it existed on January 1, 2009; or
         2. (b) (b) Will qualify as a certified historic structure following certified rehabilitation; and

      2. (ii) Nonincome-producing property that is:

         1. (a) (a) Listed in the National Register of Historic Places;
         2. (b) (b) Designated as contributing to a district listed in the National Register of Historic Places; or
      3. (c) (c) Eligible for designation as contributing to a district listed in the National Register of Historic Places following certified rehabilitation.

   2. (B) For purposes of the certification decisions set forth in this part, an eligible property encompasses the historic building and its:

      1. (i) Site;
      2. (ii) Landscape features; and
      3. (iii) Environment.

   3. (C)

      1. (i) The National Park Service’s decision to list a property in the National Register of Historic Places, including boundary determinations, does not limit the scope of review of the rehabilitation project for tax certification purposes.
      2. (ii) Such review will include the entire historic property as it existed prior to rehabilitation and any related new construction;

6. (6)

   1. (A) “Historic district” means a geographically definable area, urban or rural, that possesses a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development.
   2. (B) A district may also comprise individual elements separated geographically during the period of significance but linked by association or function;

7. (7) “Holder” means the holder of a certification of completion that is:

   1. (A) A person, firm, or corporation subject to the income tax imposed by the Income Tax Act of 1929, Arkansas Code § 26-51-101 et seq.; or
   2. (B) An insurance company paying the premium tax levied under Arkansas Code §§ 26-57-603 – 26-57-605 on its gross premium receipts;

8. (8)

   1. (A) “Income-producing property” means nonresidential real property and residential rental property, as defined by the Internal Revenue Code, Section 168.
   2. (B) For the purpose of the Arkansas Historic Rehabilitation Income Tax Credit Act, Arkansas Code § 26-51-2201 et seq., income-producing property includes properties to be rehabilitated for resale as condominium units;

9. (9)

   1. (A) “National Register of Historic Places” means the national register of districts, sites, buildings, structures, and objects significant in American history, architecture, archeology, engineering, and culture pursuant to Section 101(a)(1) of the National Historic Preservation Act of 1966, 54 U.S.C. § 300101 et seq.
   2. (B) The procedures of the National Register of Historic Places appear in 36 C.F.R. pt. 60;
10. (10) “Nonincome-producing property” means residential real property, as defined by the Internal Revenue Code, Section 168;

11. (11)

    1. (A) “Owner” means a person or an entity that owns eligible property and is the initial recipient of the certification of completion from the Division of Arkansas Heritage.

    2. (B) An owner can be:

       1. (i) An individual, partnership, limited liability company, corporation, or public agency holding a fee-simple interest in a property; or
       2. (ii) Any other person or entity recognized for purposes of the applicable tax benefits;
12. (12) “Qualified rehabilitation expenses” means costs and expenses incurred to complete a certified rehabilitation in accordance with the United States Secretary of the Interior’s Standards for Rehabilitation, as determined by the Arkansas Historic Preservation Program;
13. (13) “Rehabilitation” means the process of returning a building or buildings to a state of utility, through repair or alteration, which makes possible an efficient use while preserving those portions and features of the building and its site and environment that are significant to its historic, architectural, and cultural values;
14. (14) “Standards for Rehabilitation” means the United States Secretary of the Interior’s Standards for Rehabilitation;
15. (15) “State Historic Preservation Officer” means the Director of the Division of Arkansas Heritage, or other official designated by the Governor or statute to act as liaison for purposes of administering historic preservation programs within Arkansas;

16. (16) “Tax credits” means the authorized amount that may be applied against Arkansas corporate income tax or premium tax, whether earned by:

    1. (A) An individual;
    2. (B) A partnership;
    3. (C) A limited liability company;
    4. (D) A Subchapter S corporation; or
    5. (E) A corporation; and

17. (17)

    1. (A) “Tourism attraction” means a property designed to attract at least twenty-five percent (25%) of its visitors from out of state.

    2. (B) “Tourism attraction” does not include:

       1. (i) Retail sales facilities (unless the goods are created on-site or if sales are incidental to the overall property);
       2. (ii) Facilities not open to the general public;
       3. (iii) Facilities not likely to attract overnight guests from outside the state who would stay in commercial lodging near the attraction;
       4. (iv) Facilities owned by the State of Arkansas or its political subdivisions;
       5. (v) Gambling facilities (unless for approved pari-mutuel racing currently regulated under Arkansas Code); or

       6. (vi) Lodging facilities, unless it meets the following tests:

          1. (a) (a) It must constitute a portion of a larger tourism attraction project and represent less than sixty percent (60%) of the total approved costs of the tourism attraction project; or
          2. (b) (b) If the approved cost for the lodging facility exceeds five million dollars ($5,000,000) and one (1) of the following is met:
18. (1) (1) The lodging facility is attached to a convention center containing a minimum of seventy-five thousand square feet (75,000 sq. ft.); or
19. (2) (2) The lodging facility contains a minimum of twelve thousand square feet (12,000 sq. ft.) of meeting or exhibit space.