The bill amends the Income Tax Act of 1967 to enhance tax credits for the rehabilitation of historic resources, introducing a new framework for qualified taxpayers who receive a certificate of completed rehabilitation after December 31, 2020. Taxpayers can claim these credits based on their qualified expenditures within five years of receiving the certificate, with varying credit percentages for different types of historic resources. The bill establishes a cap on total credits reserved under preapproval letters, set at $5 million per calendar year until December 31, 2025, and $100 million per calendar year starting January 1, 2026. It also outlines the application process, requiring a rehabilitation plan to be submitted to the state historic preservation office, and mandates timely processing of applications.

Additionally, the bill modifies existing laws regarding the assignment of tax credits, stipulating that assignments must occur in the year a rehabilitation certificate is issued and that the assignment form must be prescribed by the department. It allows assignees to claim credits against their tax liability and introduces provisions for taxpayers to receive a refund of 90% of the credit amount exceeding their tax liability under certain conditions. The bill also revises the definition of a small nonresidential historic resource and updates references to the state historic preservation office. Importantly, the enactment of this bill is contingent upon the passage of related legislation, ensuring that the proposed changes will only take effect if those bills are also enacted.

Statutes affected:
House Introduced Bill: 206.676