TABLE OF CONTENTS

CHAPTER 1 -INTRODUCTION

• Passive Activity Rules 1-5
• Legislative History 1-3
• General Background Regarding Credit 1-1
• Background Regarding City District Program 1-2

CHAPTER 2 CERTIFICATION PROCESS 2-1

CHAPTER 3 CERTIFICATION REQUIREMENTS Background 3-1

• Rules Applicable to Rehabilitations of Certified Historic Structures Certification Requirements 3-3
• Court Cases 3-4
• Certification Requirements and Rules for Certified Historic Structures 3-3
• Certification Law Sections 3-3

CHAPTER 4 NON-HISTORIC CREDITS

• Wall Retention Requirements for Non-Certified Rehabs 4-4
• Non-Historic Credits Law 4-2
• Non-Certified Rehabilitations Must Be at the Location Wherever the Building Has Been Placed Since Before 1936 4-3
• Definition and Special Rules for "Physical Activity on a Rehabilitation" and Abutting Buildings Which Were Combined 4-3
• Court Cases 4-4

CHAPTER 5 PLACED IN SERVICE

• When the Credit May Be Claimed 5-2
• Placed in Service Law 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
• Substantial Rehabilitation Test Law 6-6
• Substantial Rehabilitation Requirements 6-7
• Multiple Overlapping Test Periods 6-4
• Court Case 6-7
• Building Versus Site for Purposes of the Substantial Rehabilitation Test 6-5

CHAPTER 7 BASIS REDUCTION REQUIRED 

CHAPTER 8 STRAIGHT LINE COST RECOVERY

CHAPTER 9 CREDIT RECAPTURE ON DISPOSITION

CHAPTER 10 NO CREDIT FOR ACQUISITION Price

CHAPTER 11 ENLARGEMENT Price EXCLUDED

CHAPTER 12 SITEWORK EXPENDITURES EXCLUDED

CHAPTER 13 PERSONAL PROPERTY EXCLUDED

CHAPTER 14 TAX EXEMPT USE PROPERTY

CHAPTER 15 EXPENDITURES OF Leaseholder

CHAPTER 16 CONSTRUCTION INTEREST & TAXES

CHAPTER 17 PROGRESS EXPENDITURES

CHAPTER 18 FACADE EASEMENT

CHAPTER 19 DEVELOPER FEES

CHAPTER 20 PASSIVE Activity RESTRICTIONS

CHAPTER 21 Outline OF LOW Financial gain HOUSING CREDIT PROVISIONS

CHAPTER 22 CONSIDERATION OF PENALTIES