1. (a) Section 17053.91 and Section 23691 of the California Revenue and Taxation Code directs the Office of Historic Preservation (OHP) to adopt regulations to establish a written application to determine that applicants meet project requirements and to ensure that the rehabilitation project meets the Standards for Rehabilitation, part 67.7 of Title 36 of the Code of Federal Regulations, and establish a program to approve, or reject, all tax credit allocation applications.

   1. (1) This program shall be known as the State Historic Rehabilitation Tax Credit (SHRTC).

2. (b) The OHP establishes program directions in coordination with the California Tax Allocation Committee (CTCAC).

   1. (1) The OHP is responsible for ensuring that the proposed rehabilitation project meets the Standards for Rehabilitation and that the property is a certified historic structure that is a qualified residence or a certified historic building.
   2. (2) The CTCAC is responsible for all procedures, legal determinations, and rules and regulations concerning tax credit allocation and compliance.

3. (c) Tax credits are allocated for three funding categories as interpreted in the Revenue and Tax Code 17053.91(j) and 23691(j):

   1. (1) A certified historic structure that is a qualified residence;
   2. (2) A certified historic building with qualified rehabilitation expenditures of less than one million dollars;
   3. (3) A certified historic building with qualified rehabilitation expenditure of one million dollars or more.

4. (d) Projects completed before January 1, 2022 do not qualify to apply for the state historic rehabilitation tax credit.

   1. (1) Federal tax credit projects completed or participating in the federal review process on or after January 1, 2022 must submit an Initial Project application with fees to receive approval from OHP and tax allocation from the CTCAC.
   2. (2) After a tax allocation has been received, subsequently completed projects must submit the Completed Project Application with fees.

Note: Authority cited: Sections 17053.91 and 23691, Revenue and Taxation Code; and Section 5024.6, Public Resources Code. References: Secretary of the Interior's Standards for Rehabilitation, Part 67.7 of Title 36 of the Code of Federal Regulations; and Sections 17053.91 and 23691, Revenue and Taxation Code.

History

1. New section filed 11-13-2024; operative 11-13-2024 pursuant to Government Code section 11343.4(b)(3) (Register 2024, No. 46).