The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: CS/SB 1166
INTRODUCER: Commerce and Tourism Committee and Senator DiCeglie
SUBJECT: Main Street Historical Tourism and Revitalization Act
DATE: January 16, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Renner McKay CM Fav/CS
2. FT
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 1166 creates the Main Street Historical Tourism and Revitalization Act, which provides a
tax credit against corporate income taxes and insurance premium taxes for qualified expenses
incurred in the rehabilitation of a certified historic structure.
The tax credit may not exceed 20 percent (up to a maximum of $200,000) of qualified expenses
incurred in the rehabilitation of a certified historic structure that has been approved by the
National Park Service to receive federal historic rehabilitation tax credit, or 30 percent (up to a
maximum of $200,000) of the total qualified expenses incurred in the rehabilitation of such a
structure that is located within a Florida Main Street or Orlando Main Streets Program.
Any unused amount may be carried forward for a period of up to five taxable years. Tax credits
may also be sold or transferred. There is a limit of two transactions for the sale or transfer of all
or part of a tax credit. However, qualified expenses may only be counted once in determining the
amount of an available tax credit, and no more than one taxpayer may claim a tax credit for the
same qualified expenses.
The annual state revenue loss may not exceed $25 million in any fiscal year. A single entity or
individual is authorized to receive up to $1 million in tax credits cumulatively for a single
development project. Tax credits purchased from another taxpayer or entity, and any carryover
tax credits, may be used in addition to the $1 million limit. If the annual amount exceeds $25
million, applications must be rolled over and awarded the following fiscal year.
BILL: CS/SB 1166 Page 2
The Revenue Estimating Conference (REC) has not analyzed the bill. The REC analysis for a
similar version of the bill in 2023 estimated that the bill would reduce recurring General
Revenue Fund receipts in Fiscal Year 2023-2024 by $39.3 million. Beginning in Fiscal Year
2024-2025, General Revenue Fund receipts were estimated to be reduced by $39.7 million, cash
and recurring.
The bill takes effect on July 1, 2024. The emergency rulemaking authority granted to the
Department of Revenue takes effect upon the bill becoming a law.
II. Present Situation:
National Register of Historic Places
The National Register of Historic Places,1 under the National Park Service, is “part of a national
program to coordinate and support public and private efforts to identify, evaluate, and protect
America’s historic and archeological resources.”2 The program reviews property nominations
and lists eligible properties in the National Register; offers guidance on evaluating, documenting,
and listing historic places; and helps qualified historic properties receive preservation benefits
and incentives.3
Properties listed in the National Register are eligible for federal preservation tax credits.
A 20 percent income tax credit is available for the rehabilitation of historic, income-producing
buildings that are determined by the Secretary of the Interior, through the National Park Service,
to be certified historic structures.4 The National Parks Service reports that each year,
“approximately 1,200 projects are approved, leveraging nearly $6 billion annually in private
investment in the rehabilitation of historic buildings across the country.”5
In Florida, there are more than 1,700 properties and districts listed on the National Register.
Nominations for those properties must be submitted to the National Park Service through the
Florida Department of State’s Division of Resources, following a review and recommendation
by the Florida National Register Review Board.6 The cumulative total of “Qualified
Rehabilitation Expenses” (the value of items that can be written off by developers on their
federal tax bill) for Florida projects over the most recent five-year period (FY 2018-2022) is
$252 million, resulting in $50.4 million in federal tax credits.7
1
54 U.S.C. § 3021.
2
U.S. Department of the Interior, National Park Service, National Register of Historic Places, What is the National Register
of Historic Places?, https://www.nps.gov/subjects/nationalregister/what-is-the-national-register.htm (last visited Jan. 16,
2024).
3
Id.
4
U.S. Department of the Interior, National Park Service, Technical Preservation Services, https://www.nps.gov/tps/tax-
incentives.htm (last visited Jan. 16, 2024).
5
U.S. Department of the Interior, National Park Service, Historic Preservation Tax Incentives, About the Incentives,
https://www.nps.gov/subjects/taxincentives/about.htm (last visited Jan. 16, 2024).
6
Florida Department of State, Division of Historical Resources, National Register of Historic Places,
https://dos.myflorida.com/historical/preservation/national-register/ (last visited Jan. 16, 2024).
7
U.S. Department of the Interior, National Park Service, Historic Preservation Tax Incentives, 2022 Annual Report,
https://www.nps.gov/subjects/taxincentives/upload/report-2022-annual.pdf (last visited Jan. 16, 2024).
BILL: CS/SB 1166 Page 3
Main Street America
Main Street America, a program under the National Main Street Center,8 is a network of
grassroots organizations that “revitalizes older and historic commercial districts to build vibrant
neighborhoods and thriving economies.”9 The program offers community-based revitalization
initiatives to transform downtowns. In order to be designated as either an affiliate or accredited
member of Main Street America, a community must first become a member of the National Main
Street Center and meet certain requirements.10 Main Street America has coordinating programs
that are organized at the state, county, and city level which partner with the National Main Street
Center to provide support and training to Main Street America communities.
Florida has two coordinating programs: Florida Main Street America located in Tallahassee and
Orlando Main Streets located in Orlando.11 Florida Main Street is administered by the Division
of Historical Resources (division) under the Florida Department of State (DOS).12 Fifty-five
Florida Main Streets and 12 Orlando Main Streets have received technical assistance toward the
goal of revitalizing historic downtowns and encouraging economic development.13
Florida Initiatives
Currently, Florida does not offer a program that provides corporate income tax credits to offset
the costs of rehabilitating historic properties. The Historic Preservation Grant Program,
administered by the division, provides grants for the preservation and protection of the state’s
historic and archaeological sites and properties. However, any property owned by private
individuals or for-profit corporations are ineligible for such grants.14
Florida’s constitution grants any county or municipality the authority to offer ad valorem tax
exemptions to owners of historic properties making preservation improvements.15 Codified in the
Florida Statutes under three sections, residential and commercial properties improved in a
manner consistent with historic preservation standards are eligible for an exemption of up to
100 percent of the value of the improvement made to the property.16 Generally, the property
must be either individually listed in the National Register of Historic Places; be a contributing
property to a national-register-listed district; or be designated as a historic property, or as a
contributing property to a historic district. If the property is used for a governmental,
8
The National Main Street Center was established in 1980 as a program of the National Trust for Historic Preservation as a
way to address issues facing aging and historic downtowns. The Center launched the Main Street America program in 2015.
See Main Street America, About Us, https://www.mainstreet.org/aboutus (last visited Jan. 16, 2024).
9
Main Street America, About Us, https://www.mainstreet.org/aboutus (last visited Jan. 16, 2024).
10
Main Street America, Designation, https://higherlogicdownload.s3.amazonaws.com/NMSC/390e0055-2395-4d3b-af60-
81b53974430d/UploadedImages/Main_Street_America_Tier_System_Overview_-_2021_July_Update.pdf (last visited Jan.
16, 2024).
11
Main Street America, Coordinating Programs, https://higherlogicdownload.s3.amazonaws.com/NMSC/390e0055-2395-
4d3b-af60-81b53974430d/UploadedImages/The_Programs/2020_Coordinating_Program_List.pdf (last visited Jan. 16, 2024).
12
Section 267.031(5), F.S.
13
Visit Florida, Florida Main Street Programs Have Stories to Tell, https://www.visitflorida.com/travel-ideas/articles/florida-
main-street/ (last visited Jan. 16, 2024).
14
Section 267.0617(2), F.S.
15
Art. VII, s. 3, Fla. Const.
16
See ss. 196.1961, 196.1997, and 196.1998, F.S.
BILL: CS/SB 1166 Page 4
not-for-profit, or commercial purpose, it must be open to the public on a regular basis.
Additionally, property used for governmental or nonprofit purposes are eligible to have the entire
value of the property exempted.17
Corporate Income Tax
Florida levies a 5.5 percent tax on certain income of corporations and financial institutions doing
business in Florida.18 Florida utilizes the taxable income determined for federal income tax
purposes as a starting point to determine the total amount of Florida corporate income tax due.19
This means that a corporation paying taxes in Florida generally receives the same benefits from
deductions allowed when determining taxable income for federal tax purposes as it does when
determining taxable income for state taxation purposes.
Insurance Premium Tax
Florida imposes a 1.75 percent tax on most Florida insurance premiums, a 1 percent tax on
annuity premiums; and a 1.6 percent tax on self-insurers.20 Insurance premium taxes are paid by
insurance companies and remitted to the Department of Revenue (DOR). The revenues are
distributed to General Revenue. In addition, some insurers pay a retaliatory tax to the extent the
insurer's state of domicile would impose a greater tax burden than Florida imposes.
III. Effect of Proposed Changes:
The bill creates the Main Street Historical Tourism and Revitalization Act which provides a tax
credit against corporate income tax and insurance premium tax for qualified expenses21 incurred
in the rehabilitation of a certified historic structure. 22
Eligibility
For taxable years beginning on or after January 1, 2025, a credit is allowed against any tax due
for a taxable year after the application of any other allowable credits by the taxpayer. An
applicant must submit an application to the DOS to receive a tax credit and must provide the
following:
 An official certificate of eligibility from the division attesting that the project has been
approved by the National Park Service and indicating whether the project is located within a
local program area in the state;
17
Section 196.1998, F.S.
18
Section 220.11(2), F.S.
19
Section 220.12, F.S.
20
Section 624.509, F.S., and s. 624.4621, F.S.
21
The bill defines “qualified expenses” as qualified rehabilitation expenditures (defined in 26 U.S.C., §47(c)(2)) and
structural components that were incurred in Florida (defined in 26 C.F.R., § 1.48-1(e)(2)) at the time of project certification
by the U.S. Secretary of the Interior and the U.S. Internal Revenue Service (IRS).
22
The bill defines a “certified historic structure” as a building and its structural components which is of a character subject to
the allowance for depreciation provided in s. 167 of the Internal Revenue Code and which is listed on the National Register
of Historic Places or located within a registered historic district and certified by the U.S. Secretary of the Interior as being of
historic significance to the registered historic district.
BILL: CS/SB 1166 Page 5
 National Park Service Form 10-168c, signed by the National Park Service attesting that the
completed rehabilitation meets the U.S. Secretary of the Interior’s Standards for
Rehabilitation and is consistent with the historic character of the property and, if applicable,
the district in which the completed rehabilitation is located;
 List of all the dates during which the structure was rehabilitated, the date the structure was
first placed into service after certified rehabilitation23 was completed, and evidence that the
structure was placed in service;
 Documentation that the taxpayer had an ownership or a long-term leasehold interest in the
certified historic structure in the year during which the structure was placed in service after
the certified rehabilitation was completed;
 A list of total qualified expenses incurred in this state by the taxpayer in rehabilitating the
certified historic structure. The applicant must submit an audited cost report that itemizes the
qualified expenses incurred in rehabilitating the structure;
 An attestation of the total qualified expenses incurred in this state by the taxpayer for
rehabilitating the certified historic structure in this state; and
 The information required to be reported by the DOR to enable the DOR to compile its annual
report based on the tax credit applications submitted and approved.
Within 60 days after receipt of the information detailed above the DOR must approve or deny the
submitted application. If approved, the DOR must provide a letter to the taxpayer. If the taxpayer
is denied, the DOR must inform the taxpayer of the grounds for denial.
Tax Credit Amount
The total tax credit claimed annually may not exceed the amount of tax due after any other
applicable tax credits and may not exceed the following:
 Twenty percent (up to a maximum of $200,000) of the total qualified expenses incurred for
rehabilitating one or more certified historic structures that have been approved by the
National Park Service to receive the federal historic rehabilitation tax credit; or
 Thirty percent (up to a maximum of $200,000) of the total qualified expenses incurred for
rehabilitating one or more certified historic structures that have been approved by the
National Park Service to receive the federal historic rehabilitation tax credit and that are
located within a local program area of an Accredited Main Street Program.
The bill prohibits the annual state revenue loss from exceeding $25 million in any fiscal year. If
the annual amount exceeds $25 million, applications must be rolled forward and awarded by the
DOR during the following fiscal year.
A single entity or individual is prohibited from receiving more than $1 million in tax credits
cumulatively for a single development project, even if the credits have accrued over multiple tax
years. Tax credits purchased from another taxpayer or entity, and carryover tax credits from a
prior tax year, may be used in addition to the $1 million limit, if the additional tax credits were
23
The bill defines “certified rehabilitation” as the rehabilitation of a certified historic structure that the U.S. Secretary of the
Interior has certified to the U.S. Secretary of the Treasury as being consistent with the historic character of the certified
historic structure and, if applicable, consistent with the registered historic district in which the structure is located. See 36
C.F.R., § 67.2
BILL: CS/SB 1166 Page 6
accrued from a different development project. The DOR must award the credits on a first-come,
first-served basis.
If a taxpayer is eligible for a tax credit that exceeds taxes owed, the taxpayer may carry the
unused tax credit forward for a period of up to five taxable years.
Sale or Transfer of Tax Credit
The bill provides that there is a limit of two transactions for the sale or transfer of all or part of a