This bill introduces a historic housing preservation tax credit program, which will be administered by the housing finance authority. The program is designed to encourage investment in the rehabilitation of historical structures intended for residential use that can generate income. The bill defines key terms such as "contributor," "eligible applicant," "eligible structure," "historical structure," "pledge," and "project." Contributors, who are investors providing cash or pledges for projects, can receive a tax credit equal to 65% of their contribution against certain state taxes. The credit can be applied against the Business Profits Tax (RSA 77-A) and the Business Enterprise Tax (RSA 77-E), and any unused portion can be carried forward for up to five years, with a cap of $1,000,000 in any given tax year. The total contributions eligible for credit in any state fiscal year are capped at $10,000,000, with any excess carried forward to subsequent years.

The bill also amends RSA 77-A:5 and RSA 77-E to include the historic housing preservation tax credit. The fiscal note indicates that the financial impact on the state is indeterminable for FY 2024, with a potential decrease in revenue up to $6.5 million in FY 2025 and an indeterminable decrease in subsequent years. The maximum impact is based on the assumption that the full $10 million in contributions is made, resulting in a 65% tax credit. The bill does not require additional funding for estimated expenditures or authorize new positions for its implementation. The act is set to take effect on June 30, 2024.

Statutes affected:
Introduced: 77-A:5
As Amended by the Senate: 77-A:5