This bill amends the Income Tax Act of 1967 to enhance tax credits for qualified taxpayers who rehabilitate historic resources. It allows taxpayers with a certificate of completed rehabilitation issued between December 31, 2020, and January 1, 2026, to claim a credit for 25% of their qualified expenditures, with a total cap of $5,000,000 in credits reserved per calendar year. The bill outlines specific allocations for small nonresidential, large nonresidential, and residential historic resources, and establishes a process for application and approval, requiring that applications be processed within 120 days. Additionally, it mandates that the office verify the completion of rehabilitation before issuing a certificate and introduces provisions for the assignment of credits, which must occur in the tax year the certificate is issued.

Key changes include the introduction of definitions such as "Detroit Consumer Price Index" and "large nonresidential historic resource," as well as clarifications on "qualified expenditures" that must meet federal standards. The bill stipulates that if a taxpayer's credit exceeds their liability, the excess cannot be refunded but can be carried forward for up to ten years. It also includes provisions for the add-back of previously claimed credits if a certificate is revoked or the historic resource is sold within five years. The state historic preservation office is tasked with submitting an annual economic impact report and may impose fees to cover administrative costs, while the language of the bill replaces "shall" with "must" to clarify obligations.

Statutes affected:
Senate Introduced Bill: 206.266, 206.676