1. (a) “California Register of Historical Resources” (California Register) means the California Register designed for use by state and local agencies, private groups, and citizens to identify, evaluate, register, and protect California's historical resources. The criteria for the California Register appear in California Code of Regulations, California Register of Historical Resources (Title 14, Division 3, Chapter 11.5).
2. (b) California Tax Credit Allocation Committee (CTCAC) co-administers the state rehabilitation of certified historic structures and qualified residences tax credit program and allocates the state tax credits against personal income and corporation taxes.
3. (c) “Certification” means the approved project application for the completed project meets the Standards for Rehabilitation as affirmed by the OHP.

4. (d) “Certified Historic Structure” has the same meaning as defined in Section 47(c)(3) of the Internal Revenue Code, that is a structure in California and is listed on the California Register of Historical Resources. This means a structure that is either:

   1. (1) Individually listed in the California Register; or
   2. (2) Listed as a contributor to a registered historic district that is listed in the California Register.
5. (e) “Certified Rehabilitation” means any completed rehabilitation of a certified historic structure or qualified residence that the OHP has affirmed to the CTCAC as being consistent with the Standards for Rehabilitation.
6. (f) “Dual Project” is a project applying for both the federal and state tax credit, where federal documentation standards are also used as SHRTC submittals.
7. (g) “Functionally related buildings” are those that have historically functioned together to serve an overall purpose.
8. (h) “Inspection” means a visit by an authorized representative of the OHP to a certified historic structure or qualified residence for the purposes of reviewing and evaluating the significance of the property and the ongoing or completed rehabilitation work.
9. (i) “National Park Service, Technical Preservation Services” (NPS TPS) means the National Park Service, Washington Area Service Office, Technical Preservation Services, Heritage Preservation Services Office.
10. (j) “Office of Historic Preservation” (OHP) means the California Office of Historic Preservation designated by Public Resources Code section 5024.6 to administer historic preservation programs within California.
11. (k) “Owner” means a person, partnership, corporation, or public agency holding a fee-simple interest in a property or any other person, or entity recognized by the California Franchise Tax Board for purposes of the applicable tax benefits.
12. (l) “Property” means a building and its site and landscape features.
13. (m) “Qualified Residence” has the same meaning as that term is defined in Section 163(h)(4) of the Internal Revenue Code, that will be owned and occupied by an individual taxpayer who has a modified adjusted gross income, as defined by Section 86(b)(2) of the Internal Revenue Code, of two hundred thousand dollars ($200,000) or less, as the taxpayer's principal residence or what will be the taxpayer's principal residence within two years after the rehabilitation of the residence.

14. (n) “Qualified Rehabilitation Expenditure” (QRE) has the same meaning as that term is defined in:

    1. (1) Section 47(c)(2) of the Internal Revenue Code, except that qualified rehabilitation expenditures may include expenditures in connection with the rehabilitation of a building without regard to whether any portion of the building is or is reasonably expected to be tax-exempt use property.
    2. (2) Section 47(c)(2) of the Internal Revenue Code and also means rehabilitation expenditures incurred by the taxpayer with respect to a qualified residence for the rehabilitation of the exterior of the building or rehabilitation necessary for the functioning of the home, including, but not limited to, rehabilitation of the electrical, plumbing, or foundation of the qualified residence.
15. (o) “Registered Historic District” means any district listed in the California Register.
16. (p) “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 as determined by the OHP.
17. (q) “Secretary of the Interior's Standards for Rehabilitation” (Standards for Rehabilitation) has the same meaning as that term is defined in part 67.7 Title 36 of the Code of Federal Regulations.

As used in these regulations:

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).