Senate Bill No. 436
(By Senators Prezioso and Facemire)
[Introduced March 5, 2013; referred to the Committee on
Government Organization; and then to the Committee on Finance .]
A BILL to amend and reenact §11-21-8g of the Code of West Virginia,
1931, as amended, relating to eliminating eligibility of
expenses for qualified rehabilitated building investment
credit for residential structures; and specifying effective
Be it enacted by the Legislature of West Virginia:
That §11-21-8g of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 21. WEST VIRGINIA PERSONAL INCOME TAX.
§11-21-8g. Credit for qualified rehabilitated residential building
(a) A credit against the tax imposed by the provisions of this
article is allowed for residential certified historic structures.
The credit is equal to twenty percent of eligible rehabilitation expenses in the rehabilitation of a certified historic structure.
The credit is available for residential certified historic
structures located in this state that are reviewed by the West
Virginia Division of Culture and History and are determined to be
listed on the National Register of Historic Places either
individually or as a contributing building within a historical
district that is listed on the National Register of Historic
(b) (1) "Certified historic structure" means any building
located in this state that is determined to be listed individually
in the National Register of Historic Places or located in a
registered historic district, during the review by the West
Virginia Division of Culture and History.
(2) "Certified rehabilitation" means any rehabilitation of a
certified historic structure that is reviewed by the West Virginia
Division of Culture and History, and is determined by the Division
of Culture and History to be consistent with the historic character
of the property and, where applicable, the district in which it is
(3) "Eligible rehabilitation expenses" means expenses incurred
in the material rehabilitation of a certified historic structure
and added to the property's basis for income tax purposes.
(4) "Historic district" means a group of buildings, structures or sites that taken together make up a coherent whole with similar
historic or architectural meaning that is listed in the National
Register of Historic Places.
(5) "Historic preservation application" means application
forms published by the National Park Service, United States
Department of the Interior, Parts 1, 2 and 3, Form No. 1-168, or
its successor, or comparable application forms prepared by the
Division of Culture and History.
(6) "Material rehabilitation" means improvements, repairs,
alterations or additions consistent with the "Secretary of the
Interior's standards for rehabilitation," the actual cost of which
amounts to at least twenty percent of the assessed value of a
certified historic structure for ad valorem real estate tax
purposes for the year before such rehabilitation expenses were
incurred, exclusive of the assessed value of the land.
(7) "Residential certified historic structure" means any
certified historic structure that is:
(A) Classified as Class II property for levy purposes pursuant
to section five, article eight, chapter eleven of this code for the
year in which the rehabilitation expenses are incurred; or
(B) Not classified as Class II property for levy purposes for
the year in which the rehabilitation expenses are incurred but will
satisfy the requirements for classification as Class II for real property assessment purposes pursuant to section five, article
eight, chapter eleven of this code as of July 1, of the year
following the year in which the rehabilitation expenses are
(8) "Secretary of the Interior standards" means standards and
guidelines adopted and published by the National Park Service,
United States Department of the Interior, for rehabilitation of
(9) "State historic preservation officer" means the state
official designated by the Governor pursuant to provisions in the
National Historic Preservation Act of 1966, as amended and further
defined in section six, article one, chapter twenty-nine of this
(c) (1) Application and processing procedures for provisions
of this section shall be the same as or substantially similar
any required under provisions of 36 C.F.R., Part 67, and to the
extent applicable, 26 C.F.R., Part 1. Obtaining historic
preservation certification by proper application automatically
qualifies the applicant to be considered for tax credits under this
(2) The state historic preservation officer's role in the
shall be is identical, or substantially
similar, to that in 36 C.F.R., Part 67 and 26 C.F.R., Part 1, to the extent applicable.
(d) All standards including the Secretary of the Interior
standards and provisions in 36 C.F.R., Part 67 and 26 C.F.R., Part
1 that apply to tax credits available from the United States
government apply to this section, except that the property eligible
for the tax credit under this section may not be income producing
property or property for which depreciation is allowed under 26
U.S.C. § 168.
(e) If the amount of the credit for qualified rehabilitated
residential building investment exceeds the taxpayer's tax
liability for the taxable year to which the credit applies, the
amount that exceeds the tax liability for the taxable year may be
carried over for credits against the income taxes of the taxpayer
in each of the ensuing five tax years or until the full credit is
used, whichever occurs first. In no event may the amount of the
credit taken in a taxable year exceed the tax liability due for the
(f) The Tax Commissioner shall require disclosure of
information regarding credits granted pursuant to this section in
accordance with the provisions of section five-s, article ten of
this chapter. The Commissioner of the West Virginia Division of
Culture and History may establish by rule the requirements to
implement the credit for qualified rehabilitated residential building investment, including reasonable fees to defray the
necessary expenses of administration of the credit.
(g) The credit authorized by this section is available for tax
years beginning after December 31, 1999.
____(h) No credit may be authorized under this section for any
expense incurred in the rehabilitation of a building that is
certified, pursuant to the review specified in subdivision (2),
subsection (b) of this section, on or after July 1, 2013.
____(i) No credit may be authorized under this section for any
expense incurred on or after July 1, 2013.
NOTE: The purpose of this bill is to eliminate the
residential rehabilitated building tax credit program.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would