[Federal Register Volume 77, Number 231 (Friday, November 30, 2012)]
[Notices]
[Pages 71447-71448]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-29010]
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DEPARTMENT OF THE INTERIOR
National Park Service
[NPS-WASO-TPS-11136; 2200-686]
Notice of Fee Schedule for Reviewing Historic Preservation
Certification Applications and Instructions
AGENCY: National Park Service, Interior.
ACTION: Notice of Fee Schedule and Instructions.
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SUMMARY: The National Park Service (NPS) is revising the fees it
charges for reviewing Historic Preservation Certification Applications.
DATES: Effective Date: December 31, 2012.
FOR FURTHER INFORMATION CONTACT: Brian Goeken, Chief, Technical
Preservation Services, National Park Service, 1849 C St., NW., Org Code
2255, Washington, DC 20240; telephone 202-354-2033; email: [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
II. Response to Comments
III. Final Action
I. Background
The NPS charges fees for reviewing certification applications for
Federal tax incentives contained in Section 47 of the Internal Revenue
Code (referred to herein as ``Historic Preservation Certification
Applications''). The fees have not been changed since 1984. Current
fees do not cover the full costs of administering the program.
The fee schedule established in 1984 expressed the fees in fixed
dollar amounts and did not contain provisions for adjusting the fees
over time. This method contrasts with the now-standard Government
practice of establishing and revising fees in periodic Federal Register
notices, pursuant to the Independent Offices Appropriations Act (IOAA)
and OMB Circular A-25. Accordingly, the NPS published a final
rulemaking, effective June 27, 2011, which stated that ``Fees are
charged for reviewing certification requests according to the schedule
and instructions provided in public notices in the Federal Register by
NPS.'' 36 CFR 67.11(a) (2011). This rule authorizes the NPS to make the
changes it is now implementing. The NPS will be retaining the collected
fees in accordance with Public Law. 106-113-Appendix C, 113 Stat.
1501A-142 (Nov. 29, 1999), which provides that notwithstanding any
other provision of law, the NPS may hereafter recover all fees derived
from providing necessary review services associated with historic
preservation tax certification, and such funds shall be available until
expended without further appropriation for the costs of such review
services.
II. Response to Comments
On June 22, 2012, the NPS published the proposed revised fee
schedule (77 FR 37708) to solicit public comment. A notice published
July 6, 2012, corrected the addresses for submitting comments and
extended the comment period (77 FR 40080). The NPS received four
comments by the close of the comment period (August 6, 2012).
The proposed fee schedule was:
------------------------------------------------------------------------
Cost of rehabilitation Fee
------------------------------------------------------------------------
$0-$49,999................................ $-0-.
$50,000-$3,849,999........................ $800 + 0.15% (0.0015) of
rehabilitation costs over
$50,000.
$3,850,000 or more........................ $6,500.
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Two of the four comments expressed support for the new fee
schedule.
The third comment expressed general support for the new fee
schedule, but suggested that additional fee revenues realized through
the change in fees be used to expand services provided to applicants.
The NPS notes that the current level of fees collected does not cover
the costs of administering the program. The increase in fees collected
as a result of the revised fee schedule is necessary to maintain the
existing level of services. To the extent that the revised fee schedule
may accommodate some expanded services as part of the program, such
additions may be considered in the future.
The final comment suggested that the minimum rehabilitation costs
for which fees apply should be raised to projects of $100,000, or even
higher, rather than $50,000 as proposed. The commenter stated that this
would make the rehabilitation tax credit more attractive for small
projects. In setting the revised fee schedule as initially proposed,
the NPS proposed to raise the minimum project level at which fees are
charged from $20,000 (the level in effect since 1984) to $50,000 in
rehabilitation costs. This change was roughly proportional to inflation
since 1984. However, upon consideration of this comment, the NPS
considered the amount of the fee
[[Page 71448]]
relative to the value of the credit and agrees that the minimum level
at which fees are charged should be raised further. Under the current
fee schedule, a review fee of $500 is charged for projects less than
$100,000, equivalent to 12.5% of the value of the incentive (20% of the
cost of the rehabilitation) for a $20,000 project; and under the
initially proposed schedule, the review fee would be equal to 8% of the
value of the incentive for a $50,000 project. After considering the
costs to the Government of administering the program, the value of the
service to the recipient, and the public policy of promoting investment
in our Nation's historic buildings, the NPS considers that raising the
minimum project level at which fees are assessed to $80,000 (with a
review fee equivalent to 5.3% of the value of the incentive)
effectively balances these goals. It would preserve the long-standing
NPS practice of not charging for the smallest projects, and promote the
rehabilitation of historic buildings without substantially increasing
the cost of administering the program or resulting in significant loss
of fee revenues. Raising the level further, however, would mean more
substantial loss of such revenues or require that fees be increased.
In consideration of this change, the fee schedule has been revised
as set forth below so that no fee is charged for projects with
rehabilitation costs less than $80,000. There is no change as the
result of this revision to the fees charged to projects with
rehabilitation costs of $80,000 and above to that previously proposed.
III. Action
Fee Schedule Information and Instructions
Fees will be charged for reviewing Historic Preservation
Certification Applications in accordance with the schedule appearing
below. The fee schedule and instructions concerning the same may also
be obtained through the NPS's Web site at http://www.nps.gov/tps/tax-incentives.htm.
The new fee schedule applies only to new applications received by
State Historic Preservation Offices after the effective date of this
fee schedule. Part 3 applications describing completed work in
previously reviewed Part 2 applications will be charged according to
the schedule in effect at the time the Part 2 was reviewed.
Fee Schedule
Applicants should make no payment until requested to do so by the
NPS. A certification decision will not be issued on an application
until the appropriate remittance is received. Fees are nonrefundable.
Application review fees (rounded to the nearest dollar) are based
on the applicant's estimated rehabilitation costs (defined as
``Qualified Rehabilitation Expenditures,'' or ``QREs,'' pursuant to
section 47 of the Internal Revenue Code).
------------------------------------------------------------------------
Cost of rehabilitation Fee
------------------------------------------------------------------------
$0-$79,999................................ $-0-.
$80,000-$3,849,999........................ $845 + 0.15% (0.0015) of
rehabilitation costs over
$80,000.
$3,850,000 or more........................ $6,500.
------------------------------------------------------------------------
1. The application review fee will, upon request by the NPS, be
payable one-half upon NPS receipt of a Part 2--Description of
Rehabilitation, and one-half upon NPS receipt of a Part 3--Request for
Certification of Completed Work.
2. If the estimated rehabilitation costs reported on the Part 3
application are lower than those reported on the Part 2 application
previously submitted, then the Part 3 portion of the application review
fee will be based on the costs reported on the Part 3. No refund of the
Part 2 fee difference--if any--will be made.
3. If the estimated rehabilitation costs reported on the Part 3
application are higher than those reported on the Part 2 application
previously submitted, then the Part 3 portion of the fee will be 100%
of the review fee less the Part 2 portion of the fee previously paid.
4. If Part 2 and Part 3 applications are received at the same time,
the application review fee will be assessed on the estimated
rehabilitation costs reported on the Part 3.
5. For a project involving multiple buildings that were
functionally related historically pursuant to 36 CFR part 67, the
application review fee will be based on the estimated rehabilitation
costs of the entire project.
6. For a phased project pursuant to 36 CFR part 67, the application
review fee will be based on the total estimated rehabilitation costs
for all phases.
7. Projects requiring submittal of a new Part 2 application will be
assessed an application review fee equal to the fee for a new Part 2
application. No refunds or credits toward the new application will be
issued for the fees paid for the prior Part 2 application.
Dated: November 5, 2012.
Jonathan B. Jarvis,
Director, National Park Service.
[FR Doc. 2012-29010 Filed 11-29-12; 8:45 am]
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