F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 499 2023
1 A bill to be entitled
2 An act relating to the Florida Main Street Program and
3 historic preservation tax credits; creating s.
4 220.197, F.S.; providing a short title; defining
5 terms; specifying eligibility requirements for
6 receiving specified tax credits for taxpayers that
7 rehabilitate certified historic structures; specifying
8 requirements for taxpayers claiming or transferring
9 specified tax credits; specifying requirements for the
10 Division of Historical Resources of the Department of
11 State for evaluating and certifying applications for
12 specified tax credits; specifying the amount of tax
13 credits; providing construction; authorizing the
14 carryforward, sale, and transfer of tax credits;
15 providing the Department of Revenue and the division
16 audit and examination powers for specified purposes
17 related to certified rehabilitation expenses;
18 requiring the return of forfeited tax credits under
19 certain circumstances; providing penalties; requiring
20 the Department of Revenue to provide specified annual
21 reports to the Legislature; providing duties of the
22 Department of Revenue; authorizing the Department of
23 Revenue and the division to adopt rules; amending s.
24 213.053, F.S.; authorizing the Department of Revenue
25 and the Secretary of the United States Department of
Page 1 of 21
CODING: Words stricken are deletions; words underlined are additions.
hb0499-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 499 2023
26 the Interior to make certain information available for
27 specified purposes; amending s. 220.02, F.S.; revising
28 the order in which tax credits against the corporate
29 income tax or the franchise tax are applied; amending
30 s. 220.13, F.S.; revising the definition of the term
31 "adjusted federal income"; amending s. 624.509, F.S.;
32 revising the order in which credits and deductions
33 against the insurance premium tax are applied;
34 authorizing the Department of Revenue to adopt
35 emergency rules to implement certain provisions;
36 providing for expiration of that authority; providing
37 applicability; providing an effective date.
38
39 WHEREAS, historic revitalization creates highly paid local
40 construction jobs, and
41 WHEREAS, historic rehabilitation increases the value of
42 buildings and results in a growing state and local tax base, and
43 WHEREAS, historic revitalization boosts heritage tourism
44 and creates thriving downtowns that are attractive to main
45 street businesses, and
46 WHEREAS, reusing historic buildings creates affordable
47 spaces for small business incubation, and
48 WHEREAS, repurposing historic buildings saves resources and
49 activates vacant spaces, and
50 WHEREAS, historic rehabilitation projects leverage
Page 2 of 21
CODING: Words stricken are deletions; words underlined are additions.
hb0499-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 499 2023
51 significant private investment, and
52 WHEREAS, leveraging state tax incentives increases the
53 effectiveness of federal Historic Preservation Tax Incentives
54 and the Opportunity Zones Program to encourage the historic
55 preservation of existing buildings, and
56 WHEREAS, an increase in rehabilitation activity occurs when
57 a state incentive is combined with federal Historic Preservation
58 Tax Incentives, and
59 WHEREAS, many historic buildings in this state need safety
60 upgrades and other improvements that require both public and
61 private investment to return these buildings as assets of their
62 local communities, NOW, THEREFORE,
63
64 Be It Enacted by the Legislature of the State of Florida:
65
66 Section 1. Section 220.197, Florida Statutes, is created
67 to read:
68 220.197 Main Street Historic Tourism and Revitalization
69 Act; tax credits; reports.—
70 (1) SHORT TITLE.—This act may be cited as the "Main Street
71 Historic Tourism and Revitalization Act."
72 (2) DEFINITIONS.—As used in this section, the term:
73 (a) "Active Main Street program" means an area
74 participating under a recognized coordinated Main Street America
75 licensed program or the Orlando Main Streets program. An Active
Page 3 of 21
CODING: Words stricken are deletions; words underlined are additions.
hb0499-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 499 2023
76 Main Street program must:
77 1. Have broad-based community support for the commercial
78 district revitalization process with strong support from the
79 public and private sectors.
80 2. Have a developed vision and mission statement relevant
81 to community conditions.
82 3. Have a comprehensive work plan.
83 4. Possess a historic preservation ethic.
84 5. Have an active board of directors and committees.
85 6. Have an adequate operating budget.
86 7. Have a paid professional program manager.
87 8. Conduct a program of ongoing training for staff and
88 volunteers.
89 9. Report key statistics.
90 10. Be a current designated Florida Main Street program.
91 (b) "Certified historic structure" means a building and
92 its structural components as defined in 36 C.F.R. s. 67.2 which
93 is of a character subject to the allowance for depreciation
94 provided in s. 167 of the Internal Revenue Code of 1986, as
95 amended, and which is:
96 1. Individually listed in the National Register of
97 Historic Places; or
98 2. Located within a registered historic district and
99 certified by the United States Secretary of the Interior as
100 being of historic significance to the registered historic
Page 4 of 21
CODING: Words stricken are deletions; words underlined are additions.
hb0499-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 499 2023
101 district as set forth in 36 C.F.R. s. 67.2.
102 (c) "Certified rehabilitation" means the rehabilitation of
103 a certified historic structure that the United States Secretary
104 of the Interior has certified to the United States Secretary of
105 the Treasury as being consistent with the historic character of
106 the certified historic structure and, if applicable, consistent
107 with the registered historic district in which the certified
108 historic structure is located as set forth in 36 C.F.R. s. 67.2.
109 (d) "Division" means the Division of Historical Resources
110 of the Department of State.
111 (e) "Florida Main Street program" means a statewide
112 historic preservation-based downtown revitalization assistance
113 program created, maintained, and administered by the division
114 under s. 267.031(5).
115 (f) "Local program area" means the specific geographic
116 area in which an Active Main Street program is conducted as
117 approved and maintained by the division or in which the Orlando
118 Main Streets program is conducted.
119 (g) "Long-term leasehold" means a leasehold in a
120 nonresidential real property for a term of 39 years or more or a
121 leasehold in a residential real property for a term of 27.5
122 years or more.
123 (h) "National Register of Historic Places" means t he list
124 of historic properties significant in American history,
125 architecture, archeology, engineering, and culture maintained by
Page 5 of 21
CODING: Words stricken are deletions; words underlined are additions.
hb0499-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 499 2023
126 the United States Secretary of the Interior as authorized in 54
127 U.S.C. s. 3021.
128 (i) "Orlando Main Streets program" means a historic
129 preservation-based district revitalization program administered
130 by the City of Orlando.
131 (j) "Qualified expenses" means rehabilitation expenditures
132 that qualify for the credit under 26 U.S.C. s. 47 incurred in
133 this state.
134 (k) "Registered historic district" means a district listed
135 in the National Register of Historic Places or a district:
136 1. Designated under general law or local ordinance and
137 certified by the United States Secretary of the Interior as
138 meeting criteria that will substantially achieve the purposes of
139 preserving and rehabilitating buildings of historic significance
140 to the district; and
141 2. Certified by the United States Secretary of the
142 Interior as meeting substantially all of the requirements for
143 listing a district in the National Register of Historic Places.
144 (3) ELIGIBILITY FOR TAX CREDIT.—For taxable years
145 beginning on or after January 1, 2024, there is allowed a credit
146 against any tax due for a taxable year under this chapter after
147 the application of any other allowable credits by the taxpayer.
148 (a) To claim and receive a tax credit under this section,
149 a taxpayer must apply to the division for a tax credit for
150 qualified expenses in the amount and under the conditions and
Page 6 of 21
CODING: Words stricken are deletions; words underlined are additions.
hb0499-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 499 2023
151 limitations provided in this section against the tax due for a
152 taxable year under this chapter and must provide the division
153 with all of the following:
154 1. Documentation showing that:
155 a. The rehabilitation is a certified rehabilitation;
156 b. The structure is a certified historic structure, is
157 income-producing, is located within this state, and is
158 rehabilitated and placed into service on or after January 1,
159 2024;
160 c. The taxpayer had an ownership or a long-term leasehold
161 interest in the certified historic structure in the year during
162 which the certified historic structure was placed into service
163 after the certified rehabilitation was completed;
164 d. The total amount of qualified expenses incurred in
165 rehabilitating the certified historic structure exceeded $5,000;
166 e. The qualified expenses were incurred in this state; and
167 f. The taxpayer received a tax credit for the qualified
168 expenses under 26 U.S.C. s. 47.
169 2. An official certificate of eligibility from the
170 division, signed by the State Historic Preservation Officer or
171 the Deputy State Historic Preservation Officer, attesting that
172 the project has been approved by the National Park Service and
173 confirming that the project is located within a local program
174 area.
175 3. National Park Service Form 10-168c (Rev. 2019), titled
Page 7 of 21
CODING: Words stricken are deletions; words underlined are additions.
hb0499-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 499 2023
176 "Historic Preservation Certification Application-Part 3-Request
177 for Certification of Completed Work," or a similar form, signed
178 by an officer of the National Park Service, attesting that the
179 completed rehabilitation meets the United States Secretary of
180 the Interior's Standards for Rehabilitation and is consistent
181 with the historic character of the property and, if applicable,
182 the district in which the completed rehabilitation is located.
183 The form may be obtained through the National Park Service.
184 4. An identification of the dates during which the
185 certified historic structure was rehabilitated, the date the
186 certified historic structure was placed into service after the
187 certified rehabilitation was completed, and evidence that the
188 certified historic structure was placed into service after the
189 certified rehabilitation was completed.
190 5. A list of total qualified expenses incurred by the
191 taxpayer in rehabilitating the certified historic structure. For
192 certified rehabilitations with qualified expenses that exceed
193 $750,000, the taxpayer must submit an audited cost report issued
194 by a certified public accountant which itemizes the qualified
195 expenses incurred in rehabilitating the certified historic
196 structure. A taxpayer may submit an audited cost report issued
197 by a certified public accountant which was created for purposes
198 of applying for a federal historic rehabilitation tax credit and
199 which includes all of the qualified expenses incurred in
200 rehabilitating the certified historic structure.
Page 8 of 21
CODING: Words stricken are deletions; words underlined are additions.
hb0499-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 499 2023
201 6. An attestation of the total qualified expenses incurred
202 by the taxpayer in rehabilitating the certified historic
203 structure.
204 7. The information required to be reported by the
205 department in subsection (8) to enable the department to compile
206 its annual report.
207 (b) Within 60 days after receipt of the information
208 required under paragraph (a), the division shall evaluate the
209 application and recommend the applicant for certification or
210 denial. The division must approve or deny the application within
211 30 days after receiving the recommendation. If approved, the
212 division must provide a letter of certification to the applicant
213 consistent with any restrictions imposed. If the division denies
214 any part of the requested credit, the division must inform the
215 applicant of the grounds for the denial. The divisi on must
216 submit a copy of the certification and the information provided
217 by the taxpayer