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. The amendment specifically expands the preservation of existing rights provision, which was initially set to protect tax credits issued, awarded, or allowed prior to January 1, 2023. The new language extends this protection to include tax credits issued, awarded, or allowed prior to July 1, 2023.

The bill clarifies that the changes made to the historic preservation tax credit will not adversely affect taxpayers' rights to claim or redeem credits issued before the specified dates, including any carryforward amounts. This adjustment aims to mitigate the impact of the gradual reduction in refundability of the historic preservation tax credit, which was established in House File 2317, where the refundability will decrease from 100 percent to 75 percent for tax years beginning on or after January 1, 2027.