Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-1007.01 Pierce Lively x2059
HOUSE BILL 24-1314
House Committees Senate Committees
Finance
A BILL FOR AN ACT
C
ONCERNING EXPANDING THE INCOME TAX CREDIT FOR QUALIFIED101
COSTS INCURRED IN PRESERVATI ON OF HISTORIC STRUCTURES .102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill modifies the income tax credit for qualified costs incurred
in preservation of historic structures (credit) by:
! Modifying the requirement that a qualified commercial or
residential structure be at least 50 years old to instead
require a qualified commercial or residential structure to be
30 years old;
HOUSE SPONSORSHIP
Lukens and Martinez,
SENATE SPONSORSHIP
Gonzales,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. ! Extending the period for which a taxpayer may claim the
credit through income tax years commencing prior to
January 1, 2037;
! Extending the period for which the Colorado office of
economic development may reserve the credit through
December 31, 2032;
! Limiting the credit to apply to past rehabilitation
expenditures that occurred 12, rather than 24, months prior
to the submission of an application for the credit on or after
January 1, 2026;
! Preventing a person from submitting an application for the
credit on or after January 1, 2025, in connection with an
already completed rehabilitation project;
! Increasing the amount of the credit that may be awarded for
residential rehabilitation expenditures from $50,000 to
$100,000, beginning with credits that are awarded on or
after January 1, 2025;
! Removing the 5% increase in the percentage of applicable
rehabilitation expenses incurred in a rehabilitation in a
disaster area under the credit for rehabilitations made in
connection with an application for the credit submitted on
or after January 1, 2025;
! For tax years commencing on or after January 1, 2027,
allowing the credit for qualified residential structures to be
refundable rather than able to be carried forward; and
! For calendar years commencing on or after January 1,
2025, but before January 1, 2030, establishing a second
income tax credit pool of $5 million annually that is
reserved for an owner of a qualified commercial structure
that is rehabilitated so that at least 50% of the square
footage of the qualified commercial structure will be net
new housing rental units, and, if the qualified commercial
structure is subject to a deed restriction that requires the
owner to lease rental housing to individuals with an income
below a certain amount, the taxpayer claiming the credit
may claim 5% more of the qualified expenditures.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 39-22-514.5, amend2
(2)(j)(I), (2)(l)(I), (2)(n), (3), (5)(a) introductory portion, (5.5)(a)(I),3
(5.5)(a)(II), (7)(a), (7)(a.5), (7)(b), (8)(a), (8)(b) introductory portion,4
HB24-1314-2- (8)(c)(II), (8)(c)(IV)(B), (11), (12)(a) introductory portion, (12)(a)(III),1
(12)(b), and (14); repeal (5.5)(b) and (8)(f); and add (5)(b.5), (8)(c)(V),2
(12)(a.5), and (16) as follows:3
39-22-514.5. Tax credit for qualified costs incurred in4
preservation of historic structures - short title - definitions.5
(2) Definitions. As used in this section, unless the context otherwise6
requires:7
(j) "Qualified commercial structure" means an income producing8
or commercial property located in Colorado that is:9
(I) At least fifty THIRTY years old; and10
(l) "Qualified residential structure" means a nonincome producing11
and owner-occupied residential property located in Colorado that is:12
(I) At least fifty THIRTY years old; and13
(n) "Rehabilitation plan"
OR "PLAN" means construction plans and14
specifications for the proposed rehabilitation of a qualified structure that15
is
ARE in sufficient detail to enable the office or the reviewing entity, as16
applicable, to evaluate whether the structure is in compliance with the17
standards developed under subsection (4) of this section.18
(3) General provisions. For income tax years commencing on or19
after January 1, 2016, but prior to January 1, 2030 JANUARY 1, 2037, there20
shall be allowed a credit with respect to the income taxes imposed21
pursuant to this article 22 to each owner of a qualified structure that22
complies with the requirements of this section.23
(5) Submission by owner of application and rehabilitation24
plan. (a) The owner shall submit an application and rehabilitation plan25
to either the office for a qualified commercial structure or to the26
reviewing entity for a qualified residential structure, along with an27
HB24-1314
-3- estimate of the qualified rehabilitation expenditures under the1
rehabilitation plan. The IF AN APPLICATION AND REHABILITATION PLAN IS2
FOR A QUALIFIED COMMERCIAL STRUCTURE , THE OWNER SHALL SPECIFY3
WHETHER THE OWNER IS SEEKING TO RESERVE A CREDIT ALLOWED4
PURSUANT TO SUBSECTION (12)(a) OF THIS SECTION OR A CREDIT ALLOWED5
PURSUANT TO SUBSECTION (12)(a.5) OF THIS SECTION, AND AN OWNER6
MAY ONLY APPLY FOR ONE OF THESE TWO CREDITS FOR A SINGLE7
QUALIFIED REHABILITATION PLAN AS DESCRIBED IN SUBSECTION (7) OF8
THIS SECTION. AN owner, at the owner's own risk, may incur qualified9
rehabilitation expenditures no earlier than twenty-four months prior to the10
submission of the application and rehabilitation plan
THAT AN OWNER11
SUBMITS PRIOR TO JANUARY 1, 2026, AND NO EARLIER THAN TWELVE12
MONTHS PRIOR TO THE SUBMISSION OF THE APPLICATION AND13
REHABILITATION PLAN THAT AN OWNER SUBMITS ON OR AFTER JANUARY14
1,
2026, but only if satisfactory documentation is submitted to the office15
or the reviewing entity, as applicable, indicating the condition of the16
qualified structure prior to commencement of the rehabilitation, including17
but not limited to photographs of the qualified structure and written18
declarations from persons knowledgeable about the qualified structure.19
An owner may submit an application and rehabilitation plan and may20
commence rehabilitation before the property: 21
(b.5) O
N OR AFTER JANUARY 1, 2025, AN OWNER SHALL NOT22
SUBMIT AN APPLICATION AND REHABILITATION PLAN FOR AN ALREADY23
COMPLETED REHABILITATION PROJECT .24
(5.5) Issuance of tax credit certificate for qualified residential25
structures - rules. (a) (I) Following the completion of a rehabilitation of26
a qualified residential structure, the owner shall notify the reviewing27
HB24-1314
-4- entity that the rehabilitation has been completed and shall certify that the1
qualified rehabilitation expenditures incurred in connection with the2
rehabilitation plan. The owner shall also provide the reviewing entity with3
a cost and expense certification for the total qualified rehabilitation4
expenditures and the total amount of tax credits for which the owner is5
eligible. The reviewing entity shall review the documentation of the6
rehabilitation and verify its compliance with the rehabilitation plan.7
Except as otherwise provided in subsection (5.5)(a)(II) SUBSECTIONS8
(5.5)(a)(II)
AND (5.5)(a)(III) of this section, within ninety days after9
receipt of the foregoing documentation from the owner the reviewing10
entity shall issue a tax credit certificate in an amount equal to twenty11
percent of the actual qualified rehabilitation expenditures; except that the12
amount of the tax credit certificate
AWARDED FOR TAX YEARS13
COMMENCING BEFORE JANUARY 1, 2025, shall not exceed fifty thousand14
dollars for each qualified residential structure, which amount is
THE15
AMOUNT OF THE TAX CREDIT CERTIFICATE AWARDED FOR TAX YEARS16
COMMENCING ON OR AFTER JANUARY 1, 2025, SHALL NOT EXCEED ONE17
HUNDRED THOUSAND DOLLARS FOR EACH QUALIFIED RESIDENTIAL18
STRUCTURE, AND BOTH THE FIFTY THOUSAND DOLLAR AND ONE HUNDRED19
THOUSAND DOLLAR AMOUNTS ARE to be calculated over a ten-year rolling20
period that commences with each change in ownership of the qualified21
residential structure.22
(II) For income tax years commencing prior to January 1, 2030,23
AND FOR APPLICATIONS SUBMITTED PURSUANT TO SUBSECTION (5) OF THIS24
SECTION PRIOR TO JANUARY 1, 2025, with respect to a qualified residential25
structure located in an area that the president of the United States has26
determined to be a major disaster area under section 102 (2) of the federal27
HB24-1314
-5- "Robert T. Stafford Disaster Relief and Emergency Assistance Act", 421
U.S.C. sec. 5121 et seq., or that is located in an area that the governor has2
determined to be a disaster area under the "Colorado Disaster Emergency3
Act", part 7 of article 33.5 of title 24, the amount of the tax credit4
specified in subsection (5.5)(a)(I) of this section is increased to5
twenty-five percent for an application that is filed within six years after6
the disaster determination.7
(b) Notwithstanding any other provision of law, a taxpayer may8
claim the benefits offered by either subsection (5.5)(a)(II) or (5.5)(a)(III)9
of this section but shall not claim the benefits offered by both subsections10
(5.5)(a)(II) and (5.5)(a)(III) of this section.11
(7) Reservation of tax credits for qualified rehabilitation plans12
for qualified commercial structures. (a) In the case of a qualified13
commercial structure, a reservation of tax credits is permitted in14
accordance with the provisions of this subsection (7). The office and the15
historical society shall review the application and rehabilitation plan for16
a qualified commercial structure to determine that the information17
contained in the application and plan is complete. If the office and the18
historical society determine that the application and rehabilitation plan are19
complete, the office shall reserve for the benefit of the owner an20
allocation of a tax credit as provided in subsection (12)(a)
OR (12)(a.5) of21
this section
AND SUBSECTION (8)(c)(II) OF THIS SECTION, and the office22
shall notify the owner in writing of the amount of the reservation. The23
reservation of tax credits does not entitle the owner to an issuance of any
24
A tax credits CREDIT until the owner complies with all of the other25
requirements specified in this section for the issuance of the tax credit.26
The office must SHALL SEPARATELY reserve tax credits ALLOWED27
HB24-1314
-6- PURSUANT TO SUBSECTION (12)(a) OF THIS SECTION AND TAX CREDITS1
ALLOWED PURSUANT TO SUBSECTION (12)(a.5) OF THIS SECTION in the2
order in which it receives completed applications and rehabilitation plans3
FOR EACH OF THOSE TWO CATEGORIES OF CREDITS . The office shall issue4
any such
A reservation of tax credits authorized by this subsection (7)5
within a reasonable time, not to exceed ninety days after the filing of a6
completed application and rehabilitation plan. The office shall stamp each7
completed application and plan with the date and time it receives the8
application and plan and shall review a plan and application on the basis9
of the order in which such THE documents were submitted by date and10
time. The office shall only review an application and plan submitted in11
connection with a property for which a property address, legal12
description, or other specific location is provided in the application and13
plan
AND FOR WHICH THE OWNER HAS SPECIFIED THE CATEGORY OF CREDIT14
SOUGHT AS REQUIRED BY SUBSECTION (5)(a) OF THIS SECTION. The owner15
shall not request the review of another property for approval in the place16
of the property that is the subject of the application and plan. Any17
application and plan disapproved by the office will be removed from the18
review process, and the office shall notify the owner in writing of the19
decision to remove the property from the review process. Disapproved20
applications and plans lose their priority in the review process. An owner21
may resubmit a disapproved
MODIFIED application and plan, but such A22
resubmitted application and plan is deemed to be a new submission for23
purposes of the priority procedures described in this subsection (7)(a). If24
a resubmitted application and plan are submitted, the office may charge25
a new application fee in an amount specified in accordance with26
subsection (6) of this section.27
HB24-1314
-7- (a.5) In the case of any project for a qualified commercial1
structure the qualified rehabilitation expenditures for which amount to2
less than fifty thousand dollars, if the total number of applications for3
such projects that are received but not reserved reach FOR CREDITS4
ALLOWED PURSUANT TO EITHER SUBSECTION (12)(a) OR (12)(b) OF THIS5
SECTION REACHES fifteen, in number the office may suspend the6
submission of additional applications
FOR THAT CREDIT FOR such projects7
until such time as these
THE fifteen projects have been duly reserved or8
disapproved. The notification period that is specified in subsection (5)(c)9
of this section is extended to one hundred twenty days after receipt of the10
application and rehabilitation plan for these THE fifteen projects. Any11
application for a qualified commercial structure the qualified12
rehabilitation expenditures for which amount to fifty thousand or more13
dollars is not subject to this subsection (7)(a.5).14
(b) If, for any calendar year, the aggregate amount of reservations15
for tax credits
ALLOWED PURSUANT TO EITHER SUBSECTION (12)(a) OR16
(12)(a.5)
OF THIS SECTION THAT the office has approved is equal to the17
total amount of tax credits available for reservation
PURSUANT TO THE18
APPLICABLE SUBSECTION (12)(a) OR (12)(a.5) OF THIS SECTION during that19
calendar year, the office shall notify all owners who have submitted20
applications and rehabilitation plans
FOR RESERVATION OF A TAX CREDIT21
ALLOWED PURSUANT TO THE APPLICABLE SUBSECTION (12)(a) OR (12)(a.5)22
OF THIS SECTION then awaiting approval or submitted for approval after23
the calculation is made that no additional approvals of applications and24
plans for reservations of tax credits will be granted during that calendar25
year. and
The office shall additionally notify the owner of the priority26
number given to the owner's application and plan then awaiting approval.27
HB24-1314
-8- The applications and plans will remain in priority status for two years1
from the date of the original application and plan and will be ARE2
considered for reservations of tax credits in the priority order established3
in this subsection (7) in the event that IF additional credits become4
available resulting from the rescission of approvals under subsection5
(8)(a) of this section or because a new allocation of tax credits for a6
calendar year becomes available.7
(8) Deadline for incurring specified amount of estimated costs8
of rehabilitation - proof of compliance - audit of cost and expense9
certification - issuance of tax credit certificate - commercial10
structures. (a) Any AN owner receiving a reservation of tax credits11
under subsection (7)(a) of this section shall incur not less than twenty12
percent of the estimated costs of rehabilitation contained in the13
application and rehabilitation plan not later than eighteen months after the14
date of issuance of the written notice from the office to the owner15
granting the reservation of tax credits. Any AN owner receiving a16
reservation of tax credits shall submit evidence of compliance with the17
provisions of this subsection (8)(a). If the office determines that an owner18
has failed to comply with the requirements of this subsection (8)(a), the19
office may rescind the issuance it previously gave the owner approving20
the reservation of tax credits and, if so, the total amount of tax credits21
made available
PURSUANT TO SUBSECTION (12)(a) OR (12)(a.5) OF THIS22
SECTION, AS APPLICABLE, for the calendar year for which reservations may23
be granted must be increased by the amount of the tax credits rescinded.24
The office shall promptly notify any owner whose reservation of tax25
credits has been rescinded and, upon receipt of the notice, the owner may26
submit a new application and plan for which the office may charge a new27
HB24-1314
-9- application fee in accordance with subsection (6) of this section.1
(b) Following the completion of a rehabilitation of a qualified2
commercial structure, the owner shall notify the office that the3
rehabilitation has been completed and shall certify the qualified4
rehabilitation costs and expenses. The cost and expense certification must5
be audited by a licensed certified public accountant that is not affiliated6
with the owner. THE APPLICANT SHALL INCLUDE A REVIEW OF THE7
CERTIFICATION BY A LICENSED CERTIFIED PUBLIC ACCOUNTANT THAT IS8
NOT AFFILIATED WITH THE QUALIFIED APPLICANT, AND THE REVIEW OF THE9
CERTIFICATION MUST ALIGN WITH OFFICE POLICIES FOR CERTIFICATION OF10
QUALIFIED REHABILITATION EXPENDITURES . The office and the historical11
society shall review the documentation of the rehabilitation and the12
historical society shall verify that the documentation satisfies the13
rehabilitation plan. Within ninety days after receipt of such14
documentation from the owner, the office shall issue a tax credit15
certificate in an amount equal to the following subject to subsection (8)(c)16
of this section:17
(c) Notwithstanding subsection (8)(b) of this section:18
(II) The amount of a tax credit certificate to be issued
PURSUANT19
TO SUBSECTION (12)(a) OF THIS SECTION for any one qualified commercial20
structure shall not exceed one million dollars, in any one calendar year,
21
and
THE AMOUNT OF A TAX CREDIT CERTIFICATE TO BE ISSUED PURSUANT22
TO SUBSECTION (12)(a.5) OF THIS SECTION FOR ANY ONE QUALIFIED23
REHABILITATION PLAN SHALL NOT EXCEED ONE MILLION FIVE HUNDRED24
THOUSAND DOLLARS IN ANY ONE CALENDAR YEAR ;25
(IV) For income tax years commencing on or after January 1,26
2020, with respect to a certified historic structure that is a qualified27
HB24-1314
-10- commercial structure that is located in a rural community, the tax credit1
amounts specified in subsections (8)(b)(I) and (8)(b)(II) of this section2
must be increased as follows for an application that is properly filed in3
accordance with this section:4
(B) The twenty percent credit amount specified in subsection5
(8)(b)(II) of this section is increased to thirty percent;
AND6
(V) F
OR A TAX CREDIT ALLOWED PURSUANT TO SUBSECTION7
(12)(a.5)
OF THIS SECTION ONLY, IF, DUE TO A REGULATORY REQUIREMENT8
OR CONDITION OF FINANCING, THE QUALIFIED COMMERCIAL STRUCTURE9
FOR WHICH THE TAX CREDIT IS CLAIMED IS SUBJECT TO A DEED10
RESTRICTION THAT REQUIRES THE OWNER TO LEASE RENTAL HOUSING11
UNITS IN THE QUALIFIED COMMERCIAL STRUCTURE ONLY TO INDIVIDUALS12
OR HOUSEHOLDS WHOSE INCOME IS BELOW A SPECIFIED AMOUNT , THEN13
THE AMOUNT OF THE TAX CREDIT SPECIFIED IN SUBSECTION (8)(b) OF THIS14
SECTION, AS INCREASED PURSUANT TO SUBSECTION (8)(c)(III) OR15
(8)(c)(IV)
OF THIS SECTION, IF APPLICABLE, IS INCREASED BY AN16
ADDITIONAL FIVE PERCENT.17
(f) Notwithstanding any other provision of law, a taxpayer may
18
claim the benefits offered by either subsection (8)(c)(III) or (8)(c)(IV) of19
this section but shall not claim the benefits offered by both subsections20
(8)(c)(III) and (8)(c)(IV) of this section.21
(11) Residential and commercial. (a) F
OR TAX YEARS22
COMMENCING PRIOR TO JANUARY 1, 2027, the entire tax credit to be issued23
under this section for either a qualified residential structure or a qualified24
commercial structure may be claimed by the owner in the taxable year in25
which the certified rehabilitation is placed in service. If the amount of the26
credit allowed under this section exceeds the amount of income taxes27
HB24-1314
-11- otherwise due on the income of the owner in the income tax year for1
which the credit is being claimed, the amount of the credit not used as an2
offset against income taxes in said income tax year may be carried3
forward as a credit against subsequent years' income tax liability for a4
period not to exceed ten years and will be applied to the earliest income5
tax years possible. Any amount of the credit that is not used after such6
period shall not be refunded to the owner.7
(b) (I) F
OR TAX YEARS COMMENCING ON OR AFTER JANUARY 1,8
2027,
THE ENTIRE TAX CREDIT TO BE ISSUED UNDER THIS SECTION FOR9
EITHER A QUALIFIED RESIDENTIAL STRUCTURE OR A QUALIFIED10
COMMERCIAL STRUCTURE MAY BE CLAIMED BY THE OWNER IN THE TAX11
YEAR IN WHICH THE CERTIFIED REHABILITATION IS PLACED IN SERVICE .12
(II) I
F THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION13
FOR A QUALIFIED COMMERCIAL STRUCTURE , BUT NOT A QUALIFIED14
RESIDENTIAL STRUCTURE, EXCEEDS THE AMOUNT OF INCOME TAXES15
OTHERWISE DUE ON THE INCOME OF THE OWNER IN THE INCOME TAX YEAR16
FOR WHICH THE CREDIT IS BEING CLAIMED , THE AMOUNT OF THE CREDIT17
NOT USED AS AN OFFSET AGAINST INCOME TAXES IN SAID INCOME TAX18
YEAR MAY BE CARRIED FORWARD AS A CREDIT AGAINST SUBSEQUENT19
YEARS' INCOME TAX LIABILITY FOR A PERIOD NOT TO EXCEED TEN YEARS20
AND SHALL BE APPLIED TO THE EARLIEST INCOME TAX YEARS POSSIBLE .21
A
NY AMOUNT OF THE CREDIT THAT IS NOT USED AFTER SUCH PERIOD22
SHALL NOT BE REFUNDED TO THE OWNER .23
(III) I
F THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS24
SECTION FOR A QUALIFIED RESIDENTIAL STRUCTURE , BUT NOT A QUALIFIED25
COMMERCIAL STRUCTURE , EXCEEDS THE AMOUNT OF INCOME TAXES26
OTHERWISE DUE ON THE INCOME OF THE QUALIFIED APPLICANT IN THE27
HB24-1314
-12- INCOME TAX YEAR FOR WHICH THE CREDIT IS BEING CLAIMED , THE1
AMOUNT OF THE CREDIT NOT USED AS AN OFFSET AGAINST INCOME TAXES2
IN THE INCOME TAX YEAR IS REFUNDED TO THE QUALIFIED APPLICANT .3
(12) Limit on aggregate amount of all tax credits that may be4
reserved for qualified commercial structures - assignability and5
transferability of tax credits for qualified commercial structures - tax6
preference performance statement - legislative declaration.7
(a) Except as otherwise provided in this subsection (12) SUBSECTIONS8
(12)(a.5)
AND (12)(b) OF THIS SECTION, the aggregate amount of all tax9
credits in any tax
CALENDAR year that may be reserved for qualified10
commercial structures by the office upon the certification of all11
rehabilitation plans under subsection (7)(a) of this section for such12
structures must not exceed:13
(III) For qualified commercial structures estimating qualified14
rehabilitation expenditures in any amount, ten million dollars in the15
aggregate for each of the 2020 through 2029 2032 calendar years, in16
addition to the amount of any previously reserved tax credits that were17
rescinded under subsection (8)(a) of this section during the applicable18
calendar year; except that the aggregate amount of the ten million dollars19
in tax credits in any tax year that may be reserved by the office must be20
equally split between qualified commercial structures for which the21
estimated qualified rehabilitation expenditures are equal to or less than22
two million dollars and qualified commercial structures for which the23
estimated qualified rehabilitation expenditures are in excess of two24
million dollars.25
(a.5) F
OR CALENDAR YEARS COMMENCING ON OR AFTER JANUARY26
1,
2025, BUT BEFORE JANUARY 1, 2030, IN ADDITION TO THE TAX CREDITS27
HB24-1314
-13- ALLOWED TO BE RESERVED BY THE OFFICE PURSUANT TO SUBSECTION1
(12)(a)
OF THIS SECTION, THE OFFICE SHALL SEPARATELY RESERVE2
CREDITS PURSUANT TO THIS SUBSECTION (12)(a.5) FOR AN OWNER OF A3
QUALIFIED COMMERCIAL STRUCTURE THAT SUBMITS AN APPLICATION AND4
REHABILITATION PLAN FOR REHABILITATION OF THE QUALIFIED5
COMMERCIAL STRUCTURE SO THAT AT LEAST FIFTY PERCENT OF THE6
SQUARE FOOTAGE OF THE QUALIFIED COMMERCIAL STRUCTURE WILL BE7
NET NEW RENTAL HOUSING UNITS, AS DEFINED BY THE OFFICE. EXCEPT AS8
OTHERWISE PROVIDED IN SUBSECTION (12)(b) OF THIS SECTION, THE9
AGGREGATE AMOUNT OF ALL TAX CREDITS IN ANY CALENDAR YEAR THAT10
MAY BE RESERVED PURSUANT TO THIS SUBSECTION (12)(a.5) FOR11
QUALIFIED COMMERCIAL STRUCTURES BY THE OFFICE UPON THE12
CERTIFICATION OF ALL REHABILITATION PLANS UNDER SUBSECTION (7)(a)13
OF THIS SECTION FOR SUCH STRUCTURES MUST NOT EXCEED FIVE MILLION14
DOLLARS PER YEAR IN THE AGGREGATE , IN ADDITION TO THE AMOUNT OF15
ANY PREVIOUSLY RESERVED TAX CREDITS THAT WERE RESCINDED UNDER16
SUBSECTION (8)(a) OF THIS SECTION DURING THE APPLICABLE CALENDAR17
YEAR.18
(b) Notwithstanding any other provision of this subsection (12),19
if the entirety of the allowable tax credit amount for any tax
CALENDAR20
year is not requested and reserved under:21
(I) Subsection (12)(a) of this section, the office may use any such22
unreserved tax credits in reserving tax credits in another category for that23
same income tax CALENDAR year, and the office may also use any24
remaining unreserved tax credits for that tax CALENDAR year in reserving25
tax credits in subsequent income tax CALENDAR years; OR26
(II) S
UBSECTION (12)(a.5) OF THIS SECTION, THE OFFICE SHALL USE27
HB24-1314
-14- ANY REMAINING UNRESERVED TAX CREDITS FOR THAT CALENDAR YEAR IN1
RESERVING TAX CREDITS IN SUBSEQUENT CALENDAR YEARS .2
(14) Deadline for submitting application and rehabilitation3
plan. Notwithstanding any other provision of this section, the tax credits4
authorized by this section for the substantial rehabilitation of a qualified5
structure are not available to an owner of a qualified structure that6
submits an application and rehabilitation plan after December 31, 2029.7
D
ECEMBER 31, 2032. No action or inaction on the part of the general8
assembly has the effect of limiting or suspending the issuing of tax credits9
authorized by this section in any past or future income tax year with10
respect to a qualified structure if the owner of the structure submits an11
application and rehabilitation plan with the office on or prior to December
12
31, 2029 DECEMBER 31, 2032, even if the qualified structure is placed13
into service after December 31, 2029, DECEMBER 31, 2032. Any tax14
credits that have been reserved for a qualified commercial structure in15
accordance with subsection (7)(a) of this section and any applicable rules16
promulgated under this section prior to December 31, 2029 DECEMBER17
31,
2032, may still be issued by the office through and including18
December 31, 2032
DECEMBER 31, 2036.19
(16) Tax preference performance statement. (a) I
N20
ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL21
THAT CREATES A NEW TAX EXPENDITURE OR EXTENDS AN EXPIRING TAX22
EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT23
AS PART OF A STATUTORY LEGISLATIVE DECLARATION , THE GENERAL24
ASSEMBLY DECLARES THAT THE GENERAL PURPOSES OF THE TAX CREDIT25
CREATED IN THIS SECTION ARE TO INDUCE CERTAIN DESIGNATED BEHAVIOR26
BY TAXPAYERS AND TO PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES OR27
HB24-1314
-15- INDIVIDUALS. THE SPECIFIC PURPOSES OF THE TAX CREDIT ARE TO PROVIDE1
AN INCENTIVE TO TAXPAYERS TO REHABILITATE QUALIFIED STRUCTURES2
IN A WAY THAT INCREASES THE NUMBER OF NET NEW RENTAL HOUSING3
UNITS IN THE STATE AND TO PROVIDE A GREATER INCENTIVE FOR4
TAXPAYERS WHO DEVELOP SUCH UNITS FOR RENTAL TO LOW - AND5
MODERATE-INCOME RENTERS WHO NEED AFFORDABLE AND6
MIDDLE-INCOME HOUSING.7
(b) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL8
MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE9
PURPOSES SPECIFIED IN SUBSECTION (16)(a) OF THIS SECTION BASED ON10
THE INFORMATION REQUIRED TO BE MAINTAINED AND REPORTED BY THE11
OFFICE TO THE STATE AUDITOR PURSUANT TO SUBSECTION (16)(c) OF THIS12
SECTION.13
(c) T
HE OFFICE SHALL MAINTAIN A DATABASE OF ANY14
INFORMATION DETERMINED NECESSARY BY THE OFFICE TO EVALUATE THE15
EFFECTIVENESS OF THE INCOME TAX CREDIT ALLOWED IN THIS SECTION IN16
MEETING THE PURPOSES SET FORTH IN SUBSECTION (16)(a) OF THIS17
SECTION AND SHALL PROVIDE SUCH INFORMATION , WHICH MUST INCLUDE18
THE NUMBER AND VALUE OF TAX CREDITS CLAIMED PURS UANT TO THIS19
SECTION, THE NUMBER OF NET NEW RENTAL UNITS DEVELOPED , INCLUDING20
THE NUMBER OF SUCH UNITS DEVELOPED FOR RENTAL ONLY TO LOW - AND21
MODERATE-INCOME RENTERS, THROUGH THE REHABILITATION OF22
QUALIFIED COMMERCIAL OR RESIDENTIAL STRUCTURES FOR WHICH TAX23
CREDITS WERE ALLOWED PURSUANT TO THIS SECTION , AND, IF AVAILABLE,24
ANY OTHER INFORMATION THAT MAY BE NEEDED , TO THE STATE AUDITOR25
AS PART OF THE STATE AUDITOR 'S EVALUATION OF THE TAX CREDIT26
REQUIRED BY SECTION 39-21-305.27
HB24-1314
-16- SECTION 2. Act subject to petition - effective date. This act1
takes effect at 12:01 a.m. on the day following the expiration of the2
ninety-day period after final adjournment of the general assembly; except3
that, if a referendum petition is filed pursuant to section 1 (3) of article V4
of the state constitution against this act or an item, section, or part of this5
act within such period, then the act, item, section, or part will not take6
effect unless approved by the people at the general election to be held in7
November 2024 and, in such case, will take effect on the date of the8
official declaration of the vote thereon by the governor.9
HB24-1314
-17-