This bill amends the existing law regarding the historic preservation tax credit, which is available against individual and corporate income taxes, the franchise tax, and the insurance premiums tax. The amendment specifically expands the preservation of existing rights related to the tax credit, ensuring that any tax credits issued, awarded, or allowed prior to July 1, 2023, will not be adversely affected by the changes made in the law. The bill clarifies that taxpayers retain their rights to claim or redeem these credits, including any carryforward amounts.

Additionally, the bill addresses the gradual reduction of the refundability of the historic preservation tax credit, which was previously set at 100 percent refundable. Starting with the tax year beginning January 1, 2023, the refundability will decrease until it reaches 75 percent for tax years beginning on or after January 1, 2027. The changes made by this bill aim to protect the interests of taxpayers who have already been awarded tax credits before the specified date, thereby mitigating the impact of the new refundability provisions.