As used in this rule:

1. (1) "Act" means Acts 2019, No. 855, as codified at Arkansas Code § 19-5-1150 and § 26-51-2601 et seq., as such may be amended from time to time;
2. (2) "AHPP" means the Arkansas Historic Preservation Program, an agency of the Division of Arkansas Heritage of the Department of Parks, Heritage, and Tourism;

3. (3)

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

   2. (B) Applications are submitted in four (4) 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 Part 1, the Arkansas Historic Preservation Program will issue a certificate of eligibility;

      2. (ii)

         1. (a) (a) 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 the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings (as used herein, the "Secretary's Standards").
         2. (b) (b) See https://www.nps.gov/tps/standards/treatment-guidelines-2017.pdf;

      3. (iii)

         1. (a) (a) Application for Funding Allocation (Part 3) is the process used by the Arkansas Historic Preservation Program to guarantee that projects will have funding for their requested major historic rehabilitation tax credit at the completion of the rehabilitation process.
         2. (b) (b) Funding awards may not exceed twelve million dollars ($12,000,000).
      4. (c) (c) Rehabilitation projects will be ranked based on the priorities of the Arkansas Major Historic Rehabilitation Income Tax Credit Act, Arkansas Code § 26-51-2601 et seq., via an allocation priority score.

      5. (d) (d) Funding will be reserved on a priority basis, according to assigned allocation priority score.

         1. (e) (e) Applications that would cause the total amount of funding allocation to exceed the amount of nonallocated funding remaining in the Arkansas Major Historic Rehabilitation Trust Fund will be rolled over to the following period for rescoring; and

      6. (iv)

         1. (a) (a) Completed Rehabilitation Project (Part 4) is used by the Arkansas Historic Preservation Program to determine whether a completed rehabilitation project successfully complied with the Secretary's Standards.
         2. (b) (b) Upon approval of Part 4, the Arkansas Historic Preservation Program will issue a certificate of completion.
      7. (c) (c) Holders will submit certificates of completion to the appropriate taxing authority to claim tax credits;
4. (4) "Arkansas major historic rehabilitation income tax credit" means the income tax credit allowed under the Arkansas Major Rehabilitation Income Tax Credit Act, Arkansas Code § 26-51-2601 et seq., against the income tax imposed by Chapter 51 of Title 26 of the Arkansas Code and the premium tax levied under Arkansas Code §§ 26-57-601 – 26-57-605;
5. (5) "Certification of completion" means a certificate issued by the Division of Arkansas Heritage certifying that a project is a certified rehabilitation of an eligible property that qualifies for the Arkansas major historic rehabilitation income tax credit;
6. (6) "Certified rehabilitation" means the total of appropriate and approved rehabilitation work on an eligible property that results in a substantial rehabilitation of an eligible property that has been issued an eligibility certificate;

7. (7) "Eligible property" means property that is located in the state that:

   1. (A) Qualifies as a certified historic structure under 26 U.S.C. § 47, as it existed on January 1, 2019;
   2. (B) Will qualify as a certified historic structure following certified rehabilitation;
   3. (C) Is listed in the National Register of Historic Places;
   4. (D) Is designated as contributing to a district listed in the National Register of Historic Places; or
   5. (E) Is eligible for designation as contributing to a district listed in the National Register of Historic Places following certified rehabilitation;
8. (8) "Federal rehabilitation tax credit" means the federal tax credit provided under 26 U.S.C. § 47, as it existed on January 1, 2009;

9. (9)

   1. (A) “Funding reservation award” means where funds within the Arkansas Major Historic Rehabilitation Trust Fund are obligated to a specific rehabilitation project that continues to meet progression requirements.
   2. (B) Funding awards may not exceed twelve million dollars ($12,000,000);

10. (10)

    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;

11. (11) "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 Chapter 51 of Title 26 of the Arkansas Code; or
    2. (B) An insurance company paying the premium tax on its gross premium receipts;

12. (12) "Income tax credits" means the authorized amount that may be applied against Arkansas 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 Chapter S Corporation; or
    5. (E) A corporation;

13. (13)

    1. (A) "National Register" or "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;
14. (14) "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;
15. (15) "Premium tax" means a tax levied under Arkansas Code §§ 26-57-603 – 26-57-615;

16. (16) "Qualified rehabilitation expenses" means costs and expenses incurred to complete a certified rehabilitation that are qualified rehabilitation expenses under the:

    1. (A) Federal rehabilitation tax credit; or
    2. (B) Arkansas major historic rehabilitation tax credit;
17. (17) "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;
18. (18) "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; and

19. (19) "Tourism attraction" means:

    1. (A) Cultural or historical site;
    2. (B) Recreational or entertainment facility;
    3. (C) Area of natural phenomenon or scenic beauty;
    4. (D) Theme park;
    5. (E) Amusement or entertainment park;
    6. (F) Indoor or outdoor play or music show;
    7. (G) Botanical garden; or
    8. (H) Cultural or educational center.