ROBERT L. EHRLICH, JR., Governor

Ch. 76

(5)     "Certified rehabilitation" means a completed rehabilitation of a
certified heritage structure which the Director certifies is substantial rehabilitation
in conformance with the rehabilitation standards of the United States Secretary of
the Interior.

(6)     "Commercial rehabilitation" means a rehabilitation of a structure
other than a single-family, owner-occupied residence.

(7)     "Director" means the Director of the Maryland Historical Trust.

(8)     "Local historic district" means a district that the governing body of a
county or municipal corporation, or the Mayor and City Council of Baltimore, has
designated under local law as historic.

(9)     "Qualified rehabilitation expenditure" means any amount that:

(i) Is properly chargeable to capital account;

(ii) Is expended in the rehabilitation of a structure that by the end
of the taxable year in which the certified rehabilitation is completed is a certified
heritage structure;

(iii) Is expended in compliance with a plan of proposed
rehabilitation that has been approved by the Director and does not exceed the
estimated amount of proposed rehabilitation expenditures stated in the application
for approval of the plan of proposed rehabilitation; and

(iv) Is not funded, financed, or otherwise reimbursed by any:

1. State or local grant;

2. Grant made from the proceeds of tax-exempt bonds issued
by the State, a political subdivision of the State, or an instrumentality of the State or
of a political subdivision of the State;

3. State tax credit other than the tax credit under this
section; or

4. Other financial assistance from the State or a political
subdivision of the State, other than a loan that must be repaid at an interest rate that
is greater than the interest rate on general obligation bonds issued by the State at the
most recent bond sale prior to the time the loan is made.

(10)   "Substantial rehabilitation" means rehabilitation of a structure for
which the qualified rehabilitation expenditures, during the 24-month period selected
by the taxpayer ending with or within the taxable year, exceed:

(i) For owner-occupied residential property, $5,000; or

(ii) For all other property, the greater of:

1. The adjusted basis of the structure; or

2. $5,000.

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