What Texas Form 05-179 Is For
If a historic structure credit has already been issued by the Texas Comptroller of Public Accounts, it must be sold, assigned, or allocated using Texas Form 05-179. The form officially notifies the Comptroller that ownership of the credit has changed and identifies which reporting entity may claim it on future tax reports.
The historic structure credit applies to certified historic structures that undergo a certified rehabilitation meeting state and federal standards. Eligible projects involve the substantial rehabilitation of a qualified historic structure approved through the Historic Structure Rehabilitation Program.
The credit equals 25 percent of qualified rehabilitation expenditures and may be applied against Texas Franchise Tax or specific insurance premium tax reports. Form 05-179 does not establish the credit and only documents a transfer of an existing credit issued on Form 05-901.
When You’d Use Texas Form 05-179
Texas Form 05-179 must be filed when a historic structure credit is sold, assigned, or allocated to another taxable entity. This covers transfers involving S corporations, partnerships, joint ventures, limited liability companies, and other flow-through entities.
After the transaction date, the form must be submitted within 30 days. Whether the credit is distributed among the owners of the reporting entity, assigned without payment, or transferred for cash, this deadline still applies.
If mistakes are found after filing, an amended Form 05-179 is needed. Inaccurate credit amounts, incorrect identification numbers, or errors about the fiscal or taxable year are typical causes.
Key Rules or Details for the 2010 Tax Year
For the 2011 tax year, Texas Form 05-179 required both the transferring party and the receiving reporting entity to sign the form before submission to the Texas Comptroller of Public Accounts. The form had to be filed within 30 days of the transaction date and submitted with Form 05-901 to confirm the available historic structure credit.
Depending on tax liability and the relevant tax years, the historic structure credit may be deducted from the Texas franchise tax shown on a Texas franchise tax report. The credit remained linked to the qualifying rehabilitated building's original placed-in-service date, and the transfer did not prolong the six-year carry-forward period.
Step-by-Step (High Level)
The transferring and receiving parties must coordinate to file Form 05-179 in the state of Texas. These steps are typically followed in the process:
- The sale, assignment, or allocation agreement is finalized by the parties, who also note the transaction date and the transferred credit amount.
- Using the data from the most recent Form 05-901, both parties fill out Form 05-179.
- Section A identifies the current credit owner and includes federal identification numbers and contact information.
- Section B identifies the new credit owner and specifies the reporting entity that will receive the credit.
- Authorized representatives from both parties sign the completed form.
- The completed form and required attachments are mailed to the Texas Comptroller of Public Accounts in Austin, TX.
After submission, the Comptroller reviews the filing and updates records to reflect the new ownership of the historic structure credit.
Common Mistakes and How to Avoid Them
- Missing the 30-day filing deadline: File immediately after the transaction date so the recipient can claim the credit without delay.
- Submitting the form with only one signature: Ensure both the transferring and receiving parties sign the same form before submission.
- Failing to include Form 05-901: Attach the most recent Form 05-901 showing the available historic structure credit balance to avoid rejection.
- Providing information that does not match Comptroller records: Verify total revenue, taxable entity details, and identification numbers match Texas Comptroller records precisely.
- Claiming the credit before an updated certificate is issued: Wait until the new Form 05-901 is issued before claiming the credit on tax reports.
What Happens After You File
The Texas Comptroller examined Texas Form 05-179 after it was filed to ensure the reporting entity details matched existing records, validate the credit amount, and verify the signatures. Processing typically took several weeks, depending on the comprehensiveness of the submission and its supporting materials.
The Comptroller published amended Forms 05-901 with the updated historic structure credit balances for each party after they were approved. The credit could then be claimed on the Texas Franchise Tax or pertinent insurance premium tax reports for the applicable taxable year.
FAQs
Can only part of a historic structure credit be sold or assigned?
Yes, Texas law allows partial transfers, and a historic structure credit may be divided among multiple parties. Each transfer requires its own Form 05-179.
How many times can the same credit be transferred?
There is no limit on the number of transfers. The combined amount claimed by all parties may not exceed the original approved credit amount.
Do both parties have to sign Form 05-179?
Yes, the form is not valid unless both the transferring party and the receiving party provide signatures from authorized representatives.
Can a tax-exempt entity receive the historic structure credit?
A tax-exempt entity may be eligible to receive the credit, but it generally cannot use the credit unless it has franchise tax liability.
Does transferring the credit affect federal income tax credits?
No, the transfer only affects state-level credits. Federal credits claimed under section 47 of the federal Internal Revenue Code are reported separately.
What should be done if an error is discovered after filing?
A corrected Form 05-179 should be submitted as soon as possible. Delays may prevent the credit from being applied to tax reports for the intended taxable year.
