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. It specifically modifies the preservation of existing rights provision to ensure that the rights of taxpayers to claim or redeem tax credits issued, awarded, or allowed prior to July 1, 2023, are not adversely affected. The bill clarifies that the changes made to the historic preservation tax credit will not limit or modify any tax credits issued before this date, including any carryforward amounts.

Additionally, the bill addresses the gradual reduction of the refundability of the historic preservation tax credit that was established in House File 2317, which began with the tax year starting January 1, 2023. Under that legislation, the refundability of the credit will decrease to 75 percent for tax years beginning on or after January 1, 2027, down from the previous 100 percent refundability. This bill aims to protect the rights of taxpayers who have already received tax credits before the new changes take effect, thereby providing a safeguard for existing credits.