La. Admin. Code tit. 25 § I-1305

Current through Register Vol. 50, No. 11, November 20, 2024

Section I-1305 - Tax Credit Reservations

A. General Provisions

1. For all projects with Part 2 applications received by the SHPO on or after January 1, 2021, the maximum amount of credits available to be reserved shall not exceed one hundred twenty-five million dollars per calendar year. If the amount of tax credit reservations issued in a calendar year is less than one hundred twenty-five million dollars, the excess reservation amount shall be available for issuance in any subsequent calendar year. If a tax credit reservation is forfeited or rescinded, the forfeited or rescinded reservation amount shall be available for issuance.

2. Reservations of credits shall be first-come first-served based upon the date of approval of a completed reservation application.

3. If the total amount of credit reservations applied for in any calendar year exceeds the amount of tax credits available for reservation that year, the excess shall be treated as having been applied for on the first day of the subsequent calendar year.

4. All reservation applications received on the same business day shall be treated as received at the same time, and if the aggregate amount of the requests received on a single business day exceeds the total amount of available tax credit reservations, tax credits shall be reserved on a pro rata basis.

5. Any rescinded tax credit reservation shall be reallocated and made available to other applicants.

6. The SHPO shall track the cumulative amount of approved tax credit reservations. Applicants may review the amount of tax credit reservations available per any given calendar year on the SHPO's website.

7. Applicants must comply with all other program requirements set forth by the Division. Claims for the credit must also comply with any rules and regulations set forth by the Louisiana Department of Revenue within Title 61 of the Louisiana Administrative Code.

B. Reservation Process

1. Tax credit reservation requests will be accepted beginning July 1, 2021 for the 2021 calendar year, and on the second Monday in January each subsequent year for that year's reservations.

2. Tax credit reservation requests will not be approved prior to the state Part 2 application approval.

a. Projects that are going to be completed in phases may file a tax credit reservation application for the entire project in conjunction with a Part 2 application or may file separate tax credit reservation applications, one for each phase, prior to the project or a particular separate phase being placed in service.

3. A tax credit reservation form required by the SHPO shall contain, at minimum the following:

a. state issued project number;

b. project address;

c. part 2 application approval date;

d. estimated eligible costs and expenses

e. amount of tax credit reservation requested

f. affirmation that project will demonstrate reviewable progress within 24 months of the reservation approval

g. project owner information

h. project owner's signature and the date the form was signed

i. project contact information (if different than the owner)

4. Applications for all projects shall include a reasonably substantiated estimate of the amount of eligible costs and expenses the project expects to incur.

a. For projects which expect to incur at least $500,000 of eligible costs and expenses, such estimate shall be prepared by a Certified Public Accountant.

5.

a. The SHPO shall issue reservations of tax credits generally no later than 30 days from the later of:

i. the date properly completed reservation applications were received, or

ii. the date the state Part 2 application is approved.

b. The reservation shall include the amount of credits reserved and the applicable deadlines.

6. Tax credit reservation requests that have been approved by the SHPO will be transmitted to the Louisiana Department of Revenue in a manner that is agreed upon by both agencies.

C. Forfeiture or Rescission of Tax Credit Reservation

1. Tax credit reservations issued pursuant to this Subsection shall be rescinded if the applicant fails to provide to the SHPO sufficient evidence that the project is progressing within 24 months of the date the credit reservation is issued. This evidence may include, but is not limited, an executed tax credit investor letter of intent, final construction drawings, approved building permits, or other evidence that construction has commenced; such examples of evidence are illustrative but are not exclusive. Failure to submit evidence that a project is progressing may result in the rescission of the credit reservation.

2. If, at any time, the SHPO has reason to believe that a project has become inactive or that it is not likely to be able to meet the requirements of the program, SHPO shall contact the applicant by registered or certified mail to request a status report that includes evidence showing the project is progressing. Status reports shall not be requested more than twice during a calendar year and SHPO may waive such status reports at its discretion for extenuating circumstance including, but not limited to, force majeure events.

3. Projects that are denied during the application process by the SHPO shall have the credit reservation rescinded after all appeals have been exhausted.

4. Applicants may forfeit a tax credit reservation by submitting to the SHPO a statement that includes the information contained within the reservation form with a request to rescind the tax credit reservation.

5. The SHPO shall notify the applicant in writing that the tax credit reservation has been forfeited or rescinded.

6. Tax credit reservation requests that have been forfeited or rescinded by the SHPO will be transmitted to the Louisiana Department of Revenue in a manner that is agreed upon by both agencies.

7. Nothing in this section prohibits an applicant whose tax credit reservation has been forfeited or rescinded from submitting a new tax credit reservation.

D. Amendments

1. An applicant may amend an existing application, and amendments will be submitted in accordance with the provisions of this Subsection. Any amendment that does not request an increased or decreased reservation amount shall not modify a previous reservation. Any amendment that decreases a reservation amount shall cause the decreased amount of tax credits to be available for issuance to other applicants. Any amendment requesting an additional reservation amount shall be treated as a new application but shall not modify any previous reservation with respect to such historic structure.

2. Any applications filed on or after January 1, 2021, to amend a Part 2 application that was submitted prior to January 1, 2021, is exempt from credit reservation process.

E. Appeals

1. Applicants may appeal any decisions related to the tax credit reservation process contained within this section to the State Historic Preservation Officer.

2. Appeals must be received by the SHPO no later than 30 calendar days from the date of the decision being appealed. Appeals must detail specific reasons the denial should be partially or completely reconsidered or overturned.

3. The State Historic Preservation Officer shall determine if a hearing if necessary, and if so, the appeal will be scheduled within thirty days of the request.

4. The State Historic Preservation Officer, at his discretion, may hold a hearing in connection with the appeal.

5. Upon review of the appeal and consideration of the hearing, if applicable, the State Historic Preservation Officer shall take one of the following actions:

a. sustain, in full or in part, the denial;

b. overturn, in full or in part, the denial.

6. The State Historic Preservation Officer's final written decision to any appeal must be issued no later than 90 days after receiving the full appeal.

La. Admin. Code tit. 25, § I-1305

Promulgated by the Department of Culture, Recreation, and Tourism, Office of Cultural Development, Division of Historic Preservation, LR 40:1679 (September 2014), amended LR 471103 (8/1/2021).

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:6019.