The bill amends the Income Tax Act of 1967 to enhance tax credits for the rehabilitation of historic resources. It introduces a new section allowing qualified taxpayers who receive a certificate of completed rehabilitation after December 31, 2020, to claim tax credits for eligible expenditures within five years. The credit percentages are increased to 30% for small and residential historic resources, while larger nonresidential resources maintain a 25% credit. Additionally, the bill establishes a cap on total credits reserved under preapproval letters, starting at $5 million per year until December 31, 2025, and increasing to $100 million annually from January 1, 2026. The bill also clarifies the responsibilities of the department in managing assignment or reassignment certificates for tax credits, allowing assignees to claim credits against their tax liabilities. It introduces a refund option for qualified taxpayers with credits under $500,000, provided they forgo the carryover period. Furthermore, it revises definitions and criteria for "large" and "small" nonresidential historic resources and mandates that any revoked certificates or sales within five years require a percentage of previously claimed credits to be added back to the taxpayer's liability. The department must notify the office of any intent to transfer or sell the historic resource, and fees may be imposed to cover administrative costs. The bill also updates the definition of the "State historic preservation office" and stipulates that its enactment is contingent upon the passage of specific legislative measures.

Statutes affected:
House Introduced Bill: 206.266