Correct it allows Competition tires, headers, intakes, piggyback ECU etc. anything above that: Lexan windows, seam welding, is modified, if it's a logged booked rallycar we usually put it right into modified there modded street cars are many times prepared.
It dosent really matter as you'll see driver is MUCH more important then car prep. it's the opposite of autocross where you want to drive right at 10/10ths rallycross you want to drive fast but controlled because an overcooked turn or spin effects your overall time. it's much more challenging.