This bill amends the existing law regarding the historic preservation tax credit, which is applicable against individual and corporate income taxes, the franchise tax, and the insurance premiums tax. Specifically, it modifies the preservation of existing rights provision to extend the date from which tax credits issued, awarded, or allowed will not be adversely affected from January 1, 2023, to July 1, 2023. This means that any tax credits granted before July 1, 2023, will retain their full value and the right to claim or redeem them will not be limited or modified.

The background of this amendment stems from House File 2317, which was enacted during the 2022 legislative session and gradually reduced the refundability of the historic preservation tax credit starting with the tax year beginning January 1, 2023. Under the previous law, the tax credit was fully refundable, but it will decrease to 75 percent refundable for tax years beginning on or after January 1, 2027. The current bill aims to mitigate the impact of these changes on existing tax credits by ensuring that rights to credits awarded before the new cutoff date remain intact.