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 credits based on their qualified expenditures within five years of receiving the certificate, with varying percentages depending on the type of historic resource. A cap of $5 million per calendar year for total credits reserved under preapproval letters is established through December 31, 2025. The bill also modifies the application and approval process, requiring timely decisions from the state historic preservation office, and allows for the monetization and assignment of credits, enabling taxpayers to transfer their credits.

Additionally, the bill revises definitions and criteria for small and large nonresidential historic resources, updates the assignment process for tax credits, and introduces a provision for taxpayers to receive a refund of 90% of credit amounts exceeding their tax liability for smaller projects. It mandates written notification to the department for any intent to transfer or sell a historic resource and establishes a fee structure for administrative costs. 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