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State Historic Preservation and Cultural and Entertainment District Tax Credit Program (HPCED) Instructions for Registration General Instructions Please carefully read all applicable sections of the Iowa Code and these instructions before compiling your application. Iowa Code Chapter 404A, as in effect on August 15, 2016, shall govern all applications under the State Historic Preservation and Cultural Entertainment District (HPCED) Tax Credit program. In the event that any provision of this application or its instructions are inconsistent with Iowa Code chapter 404A, the Code shall control. Questions and/or comments can be emailed to [email protected] . State Tax Credit Program Purpose The HPCED Tax Credit Program provides a state income tax credit of up to 25% of the final qualified rehabilitation expenditures (QRE) for the sensitive rehabilitation of historic buildings. It ensures character- defining interior and exterior features and spaces of historic buildings are retained and helps revitalize surrounding neighborhoods. The tax incentives promote the rehabilitation of historic buildings of every period, size, style and type. Through this program, underused or vacant schools, warehouses, factories, retail stores, apartments, hotels, houses, offices, residences, and other buildings throughout Iowa have been returned to useful life in a manner that maintains their historic character. Another 20% of the final QRE may be available if the building is income-producing and qualifies for the Federal Historic Preservation Tax Incentives program. A separate application is required for the Federal Tax Credit Program. State Tax Credit Program Application Process As of January 26, 2015, all parts of the application process are now submitted through an online submission system, known as CACTAS . All information related to your project forms, photographs, documents, etc. will be submitted through this online portal. All application parts are accepted year round. Registration applications for projects more than $750,000 will only be accepted during the registration filing window. Registration applications for projects of $750,000 or less will be accepted year round. This guide provides instruction on the steps necessary in CACTAS to apply for registration to the HPCED program. The tax credit program consists of six steps: Part 1 Evaluates the building’s integrity, significance and project eligibility Part 1.5 Pre-Application Meeting Offers feedback to the applicant that will enable better prepared applications for the Part 2 submittal. Part 2 Evaluates if the proposed rehabilitation work meets The Secretary of the Interior’s Standards for Rehabilitation. Registration Application Submitted materials evaluate the project’s planning and financial readiness. Agreement Establishes the terms and conditions that must be met to receive the tax credit and establishes the estimated amount of the tax credit. Part 3 Evaluates the completed work has met The Secretary of the Interior’s Standards for Rehabilitation and that all other requirements of the agreement, laws, and regulations have been met.

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State Historic Preservation and Cultural and Entertainment District Tax Credit Program

(HPCED) Instructions for Registration

General Instructions

Please carefully read all applicable sections of the Iowa Code and these instructions before compiling your application. Iowa Code Chapter 404A, as in effect on August 15, 2016, shall govern all applications under the State Historic Preservation and Cultural Entertainment District (HPCED) Tax Credit program. In the event that any provision of this application or its instructions are inconsistent with Iowa Code chapter 404A, the Code shall control. Questions and/or comments can be emailed to [email protected] .

State Tax Credit Program Purpose

The HPCED Tax Credit Program provides a state income tax credit of up to 25% of the final qualified rehabilitation expenditures (QRE) for the sensitive rehabilitation of historic buildings. It ensures character-defining interior and exterior features and spaces of historic buildings are retained and helps revitalize surrounding neighborhoods. The tax incentives promote the rehabilitation of historic buildings of every period, size, style and type. Through this program, underused or vacant schools, warehouses, factories, retail stores, apartments, hotels, houses, offices, residences, and other buildings throughout Iowa have been returned to useful life in a manner that maintains their historic character. Another 20% of the final QRE may be available if the building is income-producing and qualifies for the Federal Historic Preservation Tax Incentives program. A separate application is required for the Federal Tax Credit Program.

State Tax Credit Program Application Process

As of January 26, 2015, all parts of the application process are now submitted through an online submission system, known as CACTAS . All information related to your project – forms, photographs, documents, etc. – will be submitted through this online portal. All application parts are accepted year round. Registration applications for projects more than $750,000 will only be accepted during the registration filing window. Registration applications for projects of $750,000 or less will be accepted year round.

This guide provides instruction on the steps necessary in CACTAS to apply for registration to the HPCED program.

The tax credit program consists of six steps:

Part 1 – Evaluates the building’s integrity, significance and project eligibility Part 1.5 Pre-Application Meeting – Offers feedback to the applicant that will enable better prepared

applications for the Part 2 submittal.

Part 2 – Evaluates if the proposed rehabilitation work meets The Secretary of the Interior’s Standards for

Rehabilitation.

Registration Application – Submitted materials evaluate the project’s planning and financial readiness. Agreement – Establishes the terms and conditions that must be met to receive the tax credit

and establishes the estimated amount of the tax credit. Part 3 – Evaluates the completed work has met The Secretary of the Interior’s Standards for

Rehabilitation and that all other requirements of the agreement, laws, and regulations have been met.

HISTORIC PRESERVATION & CULTURAL AND ENTERTAINMENT DISTRICT TAX

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Who May Apply Only an “eligible taxpayer” may apply for the state tax credit. An “eligible taxpayer” is defined as the fee simple owner of the property or someone having a long-term lease which meets the requirements of the federal rehabilitation credit. The applicant may be a nonprofit but may not be a governmental body. Applicants, if not the fee simple owner or a qualified long-term lessee, may also apply for the tax credit if:

they “will qualify for the federal rehabilitation credit” allowed under Section 47 of the Internal Revenue

Code AND they have notarized, written permission from the fee simple owner indicating the owner is aware of

the application and has no objection AND they become the fee simple owner or have a long-term lease which meets the requirements of the

federal rehabilitation credit allowed under Section 47 of the Internal Revenue Code prior to entering into an agreement with the Iowa Department of Cultural Affairs.

Before You Apply

There are four factors that help to determine if your rehabilitation project would meet the basic requirements of the program.

1. The rehabilitation property is a building

Although the National Register of Historic Places lists structures, objects, and sites in addition to buildings, this tax credit is only available for buildings.

2. Significance Requirements have been met A minimum of one must apply: Building must be listed on the National Register of Historic Places, or determined by the staff of

the State Historic Preservation Office to be eligible for listing. Building must be contributing to the significance of a historic district that is listed, or eligible to be

listed, on the National Register. Building must be designated as local landmarks by city or county ordinance. Barns constructed prior to 1937 and barns listed on or eligible for listing on the National Register.

3. Project meets the “Substantial Rehabilitation Test” For commercial buildings, qualified rehabilitation expenditures must equal at least 50% of the

assessed value of the building (excluding the land) before rehabilitation, or $50,000, whichever is less.

For non-commercial buildings, qualified rehabilitation expenditures must equal at least 25% of the assessed value of the building (excluding the land) before rehabilitation, or $25,000, whichever is less.

4. Proposed rehabilitation meets the Secretary of the Interior’s Standards for Rehabilitation

The work must meet the Secretary of the Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings.

Before applying, consult your accountant or tax advisor to make sure that this state tax credit is beneficial to you. Certain income and other restrictions may have a bearing on whether an owner is able to use the credit. Additionally, an applicant may not initiate the application process to apply for tax credits by submitting a Part 1 application on a project if all the work has been completed and the qualified rehabilitation project has already been placed in service, as used in Section 47 of the Internal Revenue Code.

HISTORIC PRESERVATION & CULTURAL AND ENTERTAINMENT DISTRICT TAX

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Application Part 2B – Large Project Registration Application Instructions

Please note that Registration applications for projects over $750,000 (large) will only be accepted during the registration filing period. Registration applications for projects $750,000 or less will be accepted year round. In CACTAS, when Part 2B Registration is started, please be sure to select the correct application, either Small ($750,000 or less) or Large (over $750,000).

Building Information

This information carries over from the Part 2 Application; changes/updates can be made if needed.

Historic Building name: Enter the most appropriate historic name, as indicated in a National Register

Nomination, Iowa Site Inventory Form, etc.

Project name: Enter the name of your project

Address: Enter the street address of the project building

Mark the box: if the Applicant has previously submitted a HPCED Application for this building check the box

Applicant Details

The Applicant is the person or business entity that may be eligible to receive the tax credits (see Who May Apply section). If the Applicant is a corporation or partnership, give both the name of that entity and the name of the person who signs the form. If the Applicant is not the legal owner, see Who May Apply section for the legal documentation necessary to receive state rehabilitation tax credits for the project. Provide a street address; do not enter a post office box.

Applicant Name: Enter Applicant name (signatory if Applicant is an Organization)

Applicant Organization: Enter Application Organization Name (if applicable)

Address: Enter Applicant address (address of Organization if the Applicant is an Organization)

Email: Enter Applicant email (signatory if Applicant is an Organization)

Phone Number: Enter Applicant phone number (signatory if Applicant is an Organization)

The majority of the information carries over, however please add after the Applicant Organization field:

FEIN or SSN number

Type of Entity

Project Manager Information

This person will be responsible for communicating updates to the entire project team. The State Historic Preservation Office will communicate only with the project manager and applicant unless an attorney or tax advisor is identified to handle certain matters.

Project Manager Name: Enter Project Manager name

Project Manager Organization (if applicable) : Enter Project Manager Organization

Address: Enter Project Manager address

Phone Number: Enter Project Manager phone number

Email: Enter Project Manager email

This information carries over from the Part 2 Application; changes/updates can be made if needed.

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Property Details

All information that must be completed: Total square feet: Enter total square feet of building prior to rehabilitation Stories above grade: Enter number of stories above grade prior to rehabilitation Square feet above grade: Enter total square feet above grade prior to rehabilitation Anticipated start date: Enter date anticipated for start of rehabilitation Anticipated completion date: Enter date anticipated for completion of rehabilitation Assessed value of property (immediately prior to project start): Enter the current value (from

county assessor) of the building value only (property value minus land values) prior to rehabilitation Is property exempt from property tax under State Historic Property Tax Exemption: Y/N – mark as

appropriate Have property taxes been abated on property: Y/N – mark as appropriate

Total project investment: Enter total project cost as estimated in your completed QRE Schedule (qualified + non- qualified)

Estimated QRE: Enter only QRE as estimated in your completed QRE Schedule Iowa HPCED tax credit requested: Enter value of HPCED Tax credit requested (maximum 25% of

estimated QRE)

Property – Current Metrics

All information must be completed, if the field does not apply to your project, enter zero in the field: Current space for: residential market rate only, low-income residential, retail, restaurant/bar,

office, warehouse, manufacturing, educational/museum/library, hotel or other lodging space, parking, vacant, and other

Property – Anticipated Metrics

All information must be completed, if the field does not apply to your project, enter zero in the field: Anticipated space for: total residential (units), low-income residential, retail, restaurant/bar,

office, warehouse, manufacturing, educational/museum/library, hotel or other lodging space,

parking, vacant, and other

Documents

Certification & Release of information: Download the Certification and Release of Information Template (found in the Appendix and the Part 2B Registration section in CACTAS). Answer all questions, print out the document, and sign. Failure to answer all questions may result in the project not being registered. Scan the signed document and upload to CACTAS. Registration applications without this document will not be considered.

Project Description: Provide a Word or Acrobat document with a summary of the project (400 words or less) including the historic property’s significance and character-defining features as identified in the Part 1 Application, the proposed preservation or rehabilitation treatment of the property and the anticipated benefit to the community in which it is found. This project description may be used in part or in its entirety by the Iowa Department of Cultural Affairs to inform the public of department programs, activities, and efforts.

February 2017 5

HISTORIC PRESERVATION & CULTURAL AND ENTERTAINMENT DISTRICT TAX

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Example of 2B Registration Application as viewed in CACTAS:

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HISTORIC PRESERVATION & CULTURAL AND ENTERTAINMENT DISTRICT TAX

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INSTRUCTIONS

Example of 2B Registration Application as viewed in CACTAS:

February 2017 7

HISTORIC PRESERVATION & CULTURAL AND ENTERTAINMENT DISTRICT TAX

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INSTRUCTIONS

Example of 2B Registration Application as viewed in CACTAS:

February 2017 8

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Application Part 2B – Large Project Registration Scoring Instructions

Criteria A. Rehabilitation Planning & Project Readiness The following scoring criteria are for the aid of applicants to walk through each measure used to evaluate applications. The scores will be automatically totaled on the Self-Score section at the end of the application. An application must score a minimum of 85 points in Criteria A to be eligible to be Registered. The scores will be updated and totaled when you click Save at the end of this webpage. The Applicant will also receive an email showing the current score after each Save and the score after Submit. An application must score a minimum of 85 points in Criteria A to be eligible to continue through the Registration process. Once you Submit, the Registration application and accompanying documentation CANNOT BE MODIFIED. Please review all information for accuracy prior to Submitting the application.

Rehabilitation Planning – (Maximum score 30 points) Select point score appropriate to your HPCED Part 2 approval level:

30 Points: Select if HPCED Part 2 Application is approved without Conditions

15 Points: Select if HPCED Part2 Application is approved with Conditions

Secured Financing – (Maximum score 30 points)

Select the appropriate range of percent of financing in place based on the result of values entered into the Financing Source Tool:

30 Points: Select if 91% or more of financing is in place

25 Points: Select if 90% to 81% of financing is in place

20 Points: Select if 80% to 71% of financing is in place

15 Points: Select if 70% to 61% of financing is in place

10 Points: Select if 60% to 51% of financing is in place

5 Points: Select if 50% to 41% of financing is in place

0 Points: Select if 40% or less of financing is in place

Local Government Participation and Support – (Maximum score 10 points)

Select the appropriate point value based on the documentation required/descriptions of type of support secured:

10 Points: Select if financial commitment has been secured from a jurisdiction or county as defined

5 Points: Select if resolution of support has been secured

3 Points: Select if letter of support has been secured

0 Points: Select if no indication of support has been secured

February 2017 9

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Anticipated Rehabilitation Timeline – (Maximum score 20 points) Select the appropriate point value based on estimated timeline of certified rehabilitation activity:

20 Points: Select if construction is substantially complete as of close of Registration Submission Period

15 Points: Select if construction substantially complete within 9 months of close of Registration Submission Period

10 Points: Select if construction substantially complete within 18 months of close of Registration Submission Period

5 Points: Select if construction substantially complete within 36 months of close of Registration Submission Period

Life Safety Code Review – (Maximum score 10 points)

Select the appropriate point value based on the level of review complete:

10 Points: Select if project has building permit issued by AHJ

8 Points: Select if project has preliminary building permit comments & plans are submitted for final review

5 Points: Select if project has preliminary building permit comments from AHJ

2 Points: Select if project has preliminary building permit review meeting scheduled with AHJ Ownership – (Maximum score 30 points)

Select the appropriate point value based on ownership criteria and documentation requirements:

30 Points: Select if the Applicant is the fee simple owner or a qualified lessee

20 Points: Select if the Applicant has a purchase agreement

2 Points: Select if the Applicant will qualify for the federal credit

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Criteria B. Economic and Preservation Priorities Criteria B score will be used to determine Project Registration in the event that qualifying projects scored under Criteria A result in a tie for the remaining available credits under the funding cap.

Statewide Economic Priorities – CED/GP – (Maximum score 10 points)

Select the appropriate point value based on whether project is located within a Cultural and Entertainment District or if specifically mentioned in a current Great Places contract:

10 Points: Select Yes if project is located in one of these Statewide Economic Priorities areas 0 Points: Select No if project is not located in one of these Statewide Economic Priorities areas

Statewide Economic Priorities – Disaster – (Maximum score 15 points)

Select the appropriate point value based on whether project is located within a disaster area declared by the president or governor and was physically impacted by the disaster:

15 Points: Select Yes if project is located in one of these Statewide Economic Priorities areas 0 Points: Select No if project is not located in one of these Statewide Economic Priorities areas

Statewide Economic Priorities – Jobs – (Maximum score 25 points)

Select the appropriate point value based on whether project is projected to create 500 or more permanent jobs upon completion:

25 Points: Select Yes if project projects the creation of 500 or more permanent jobs upon completion 0 Points: Select No if project does not project the creation of 500 or more permanent jobs upon

completion

Vacant Property – (Maximum score 20 points)

Select the appropriate point value based on vacancy rates of historic property to be rehabilitated as of one year ago:

20 Points: Select if 100% vacant 17 Points: Select if 90-99% vacant 14 Points: Select if 80-89% vacant 11 Points: Select if 70-79% vacant 8 Points: Select if 60-69% vacant 5 Points: Select if 50-59% vacant 3 Points: Select if 40-49% vacant 1 Points: Select if less than 40% vacant

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Preservation of Rural Resources – (Maximum score 10 points) Select the appropriate point value based on size of the community the project is located within:

10 Points: Rural Property 9 Points: Community under 500 8 Points: Community between 500 and 2,000 6 Points: Community between 2,001 and 5,000 4 Points: Community between 5,001 and 10,000 1 Points: Communities over 10,000

Previous Application – (Maximum score 20 points)

Select the appropriate point value based on previous eligible Applications for Registration submittals of this project by this Applicant:

20 Points: Third Application submitted for Registration (minimum scoring threshold required from Criteria A)

10 Points: Second Application submitted for Registration (minimum scoring threshold required from Criteria A)

0 Points: First Application submitted for Registration (minimum scoring threshold required from Criteria A)

Scoring Summary

This area automatically provides totals for each criteria section:

Criteria A. Rehabilitation Planning & Project Readiness: Maximum score is 130 points Criteria B. Economic and Preservation Priorities: Maximum score is 100 points

HISTORIC PRESERVATION & CULTURAL AND ENTERTAINMENT DISTRICT TAX

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Example of 2B Registration Scoring as viewed in CACTAS:

HISTORIC PRESERVATION & CULTURAL AND ENTERTAINMENT DISTRICT TAX

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Example of 2B Registration Scoring as viewed in CACTAS:

HISTORIC PRESERVATION & CULTURAL AND ENTERTAINMENT DISTRICT TAX

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INSTRUCTIONS

February 2017 14

Example of 2B Registration Scoring as viewed in CACTAS:

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Example of 2B Registration Scoring as viewed in CACTAS:

Naming Conventions for Electronic Submissions

The Iowa Economic Development Authority and the State Historic Preservation Office (SHPO) recommends the following file naming and abbreviations when submitting electronic files for submission, either through CACTAS, email, disk, flash drive, etc. This standard format will be used anytime we save and/or send out information related to a project. Using these standards will enable both agencies and applicants to easily determine what the project is and what the information contains.

Example of preferred file naming: STC14-77-123_Hank Bldg_Pt2_A2_dwg for a drawing file being submitted for Project STC14-77-123; The Hank Building, as a supplemental attachment for Amendment #2 for an existing Part 2.

STC14-77-

123_

Hank

Bldg_

Pt2_ A2_ dwg

ST

C#

(p

rovid

ed

by C

AC

TA

S)

His

tori

c B

uild

ing

Nam

e

Ap

plicati

on

# (

Part

)

Resp

on

se L

ab

el (M

IR #

or

A#

)

Do

cu

men

t T

yp

e

Example of email subject line for second amendment is listed below:

Example of email subject line for the submittal of a 1.5 Pre-Application Meeting submittal is listed below:

STC14-44-123_Hank Bldg_Pt2_A2 Review Submittal

STC14-44-123_Hank Bldg_Pt1.5_Form Submittal

STC#

Provided by CACTAS when you begin an application

Historic Building Name

Should be identified in the Part 1 application

Application #:

Part 1 = Pt1, Part 2 – Pt2 typical

Response Labels

MIR = More Information Request A = Amendment (A1 for first Amendment, A2 for second

Amendment)

Document type preferred abbreviations:

Desc = Description of Rehabilitation Dwg = Architectural and Mechanical Drawings

PK = Photo Key Photo = Photos

HPhoto = Historic Photos Wind = Window Survey

QRE = Cost Estimate on QRE Form