TABLE OF CONTENTS

• CHAPTER 1 -INTRODUCTION
  • General Background Regarding Credit 1-1
  • Background Regarding Philadelphia District Program 1-2
  • Legislative History 1-3
  • Passive Activity Rules 1-5
• CHAPTER 2 CERTIFICATION PROCESS 2-1
• CHAPTER 3 CERTIFICATION REQUIREMENTS Background 3-1
  • Certification Law Sections 3-3
  • Rules Applicable to Rehabilitations of Certified Historic Structures Certification Requirements 3-3
  • Certification Requirements and Rules for Certified Historic Structures 3-3
  • Court Cases 3-4
• CHAPTER 4 NON-HISTORIC CREDITS
  • Background 4-1
  • Non-Historic Credits Law 4-2
  • Non-Certified Rehabilitations Must Be at the Location Where the Building Has Been Located Since Before 1936 4-3
  • Definition and Special Rules for “Physical Work on a Rehabilitation” and Adjoining Buildings Which Were Combined 4-3
  • Wall Retention Requirements for Non-Certified Rehabs 4-4
  • Court Cases 4-4
• CHAPTER 5 PLACED IN SERVICE
  • Background 5-1
  • Placed in Service Law 5-2
  • When the Credit May Be Claimed 5-2
  • Court Case 5-2
• CHAPTER 6 SUBSTANTIAL REHABILITATION Background 6-1
  • The Substantial Rehabilitation Test 6-1
  • The 60-Month Alternative Test Period 6-4
  • Multiple Overlapping Test Periods 6-4
  • Building Versus Site for Purposes of the Substantial Rehabilitation Test 6-5
  • Substantial Rehabilitation Test Law 6-6
  • Substantial Rehabilitation Requirements 6-7
  • Court Case 6-7
• CHAPTER 7 BASIS REDUCTION REQUIRED
  • Background 7-1
  • Basic Reduction Law 7-1
• CHAPTER 8 STRAIGHT LINE COST RECOVERY
  • Background 8-1
  • Straight Line Requirement Law 8-1
  • Court Cases 8-1
• CHAPTER 9 CREDIT RECAPTURE ON DISPOSITION
  • Background 9-1
  • Credit Recapture Law 9-1
  • Credit Recapture Upon Disposition of Building/Rehabilitation 9-1
  • Court Case 9-1
• CHAPTER 10 NO CREDIT FOR ACQUISITION COSTS
  • Background 10-1
  • Acquisition Cost Law 10-1
• CHAPTER 11 ENLARGEMENT COSTS EXCLUDED
  • Background 11-1
  • Enlargement Expenditures Law 11-2
• CHAPTER 12 SITEWORK EXPENDITURES EXCLUDED
  • Background 12-1
  • Sitework Expenditures Law 12-1
• CHAPTER 13 PERSONAL PROPERTY EXCLUDED
  • Background 13-1
  • Personal Property Law 13-1
  • Court Cases, Revenue Rulings, and Senate Finance Committee Report 13-2
  • Court Cases 13-2
  • Revenue Rulings 13-2
  • Senate Finance Committee Report 13-3
• CHAPTER 14 TAX EXEMPT USE PROPERTY
  • Background 14-1
  • Tax Exempt Use Law 14-3
• CHAPTER 15 EXPENDITURES OF LESSEE
  • Background 15-1
  • Lessee Expenditures Law 15-1
  • Court Case 15-1
• CHAPTER 16 CONSTRUCTION INTEREST & TAXES
  • Background 16-1
  • Construction Interest & Taxes Law 16-1
• CHAPTER 17 PROGRESS EXPENDITURES
  • Background 17-1
  • Progress Expenditure Law 17-2
• CHAPTER 18 FACADE EASEMENT
  • Background 18-1
  • Facade Easement Law 18-2
  • Court Case and Revenue Ruling 18-2
  • Court Case 18-2
  • Revenue Ruling 18-3
• CHAPTER 19 DEVELOPER FEES
  • Background 19-1
  • Summary 19-6
• CHAPTER 20 PASSIVE ACTIVITY RESTRICTIONS
  • Background 20-1
  • Passive Activity Provisions 20-1
• CHAPTER 21 SYNOPSIS OF LOW INCOME HOUSING CREDIT PROVISIONS
  • Background 21-1
  • Provisions Regarding Low Income Housing 21-1
  • Income Targeting 21-1
  • Allowable Credit Percentages 21-2
  • When the Credit May Be Claimed 21-3
  • Effects of Federal Grants 21-3
  • Effects of Loans/Federal Subsidy 21-3
  • Recapture Provisions 21-4
  • State Housing Credit Ceiling 21-4
  • Low Income Housing Credit Claimed in Conjunction with the Rehabilitation Tax Credit 21-4
• CHAPTER 22 CONSIDERATION OF PENALTIES
• Background 22 – 1