What Texas Form 05-179 Is For
Texas Form 05-179 is used to notify the Texas Comptroller when a historic structure credit is sold, assigned, or allocated between taxable entities. The form documents a change in ownership interest for an existing historic structure credit.
The historic structure credit is a tax credit tied to qualified rehabilitation costs incurred on a certified historic structure. These historic properties may be listed on the National Register of Historic Places or located within a structure in a certified historic district.
This form supports the accurate administration of the Texas Franchise Tax by ensuring credits are properly tracked. Transfers are recorded for reporting and compliance purposes, but no credit is created.
When You’d Use Texas Form 05-179
When a historic structure credit is sold, given to, or transferred to another taxable entity, the reporting entity must complete Texas Form 05-179. This includes deals with limited liability companies, S corporations, partnerships, and joint ventures.
Whether the credit is transferred in whole or in part, the form is still applicable. Regardless of total revenue, it is necessary for Texas businesses that are subject to franchise tax or insurance premium tax.
Texas Form 05-179 must be filed within 30 days of completing the transaction. Each transfer requires a separate filing, even if the credit changes hands multiple times across tax years.
Key Rules or Details for 2013
The historic structure credit is part of the Historic Structure Rehabilitation Program, governed by the Texas Tax Code. The credit is based on qualified rehabilitation costs tied to Historic Preservation standards.
Credits are issued after Stage II approval, cost certification, and completion of an audit of the project costs. A Certificate of Completion is required before a Tax Credit Certificate is issued.
Key rules include the following:
- The historic structure credit retains its original expiration date and does not increase in value after transfer.
- The credit must be supported by a Certificate Evidencing the Eligible Credit issued by the Texas Comptroller.
- There are legal limits on how much credit you can get each year, but you can use it to lower your Texas franchise tax.
Credits may be claimed on any Texas Franchise Tax Report, including Long Form or No Tax Due Reports. The filing process is influenced by the entity's gross receipts, taxable year, and reporting requirements.
Step-by-Step (High Level)
The process begins after the sale, assignment, or allocation agreement is signed. Accurate documentation is essential to avert administrative remedies or processing delays.
The general process includes the following steps:
- The current credit owner confirms the available historic structure credit balance using the Tax Credit Certificate.
- Using accurate legal names, identification numbers, and transaction details, both parties complete the Texas Form 05-179 using the correct information.
- The form identifies the fiscal year, taxable year, and amount of credit transferred or retained.
- Authorized representatives for each entity sign the form to certify accuracy.
- The Texas Comptroller gets the finished form and any supporting documents.
After submission, the Comptroller reviews the filing and updates internal records. The Comptroller looks over the filing and updates internal records after it has been submitted. New ownership interest is shown on the revised certificates.
Common Mistakes and How to Avoid Them
- Filing after the 30-day deadline: Submit the form within 30 days of the transaction date to ensure the credit is recognized for Texas franchise tax reporting.
- Providing information that does not match official records: Match entity names, identification numbers, and other details to the Tax Credit Certificate and Public Information Report before filing.
- Submitting without authorized signatures: Confirm all required signatures are included from authorized individuals so the filing is accepted.
- Claiming the credit before updated Comptroller records are issued: Wait to claim the credit until the Texas Comptroller updates the records and issues the updated certificate.
- Omitting required supporting documentation: Attach the required certificate and any supporting documents so the submission is complete and processing is not delayed.
What Happens After You File
The Texas Comptroller reviews the filing for completeness and consistency upon receipt. The review looks at the credit balance, ownership interest, and eligibility. The review looks at the credit balance, ownership interest, and eligibility.
New certificates are issued after processing, reflecting the updated credit balances. You need these certificates to use the credit on your reports for franchise tax or insurance premium tax.
The credit may then be applied against tax liability on the appropriate Texas Franchise Tax Report. Unused portions may be carried forward, subject to statutory expiration limits.
FAQs
Who must file Texas Form 05-179?
Any business that sells, assigns, or allocates a historic structure credit must fill out the form. Any business that sells, assigns, or allocates a historic structure credit must fill out the form. This includes businesses that pass through, like Limited Liability Companies and S corporations.
Does Texas Form 05-179 affect income tax?
The form does not affect income tax. It applies to franchise tax and insurance premium tax reporting, not federal income tax or state income tax returns.
Can a historic structure credit be transferred more than once?
Texas law allows unlimited transfers. Each transaction must be reported separately using Texas Form 05-179 within the required filing period.
Does transferring the credit extend the expiration date?
The expiration date does not change. It remains tied to the original date the certified historic structure was placed in service.
Do other states’ programs affect Texas filings?
Programs in New York, New York State, North Carolina, or Minnesota operate under separate laws. Agencies such as the Minnesota Department of Revenue or the Division of Revenue do not affect Texas filings.
What documents typically support the filing?
The Tax Credit Certificate, cost certification records, and proof of eligible expenses are examples of supporting documentation. These resources help ensure compliance with applicable state and federal tax laws.
Can financing arrangements impact credit allocation?
Federal investors, bank financing, or resident curator agreements may impact ownership interest. The transaction documentation submitted with the form should accurately reflect these factors.
