Connecticut 2024 Regular Session

Connecticut House Bill HB05190 Compare Versions

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Version 2 (New)

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	5	+	General Assembly Substitute Bill No. 5190
	6	+	February Session, 2024
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4		-	Substitute House Bill No. 5190
5		-
6		-	Public Act No. 24-109
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8	11
9	12		AN ACT CONCERNING THE HISTORIC HOMES REHABILITATION
10	13		TAX CREDIT.
11	14		Be it enacted by the Senate and House of Representatives in General
12	15		Assembly convened:
13	16
14		-	Section 1. Section 10-416 of the 2024 supplement to the general
15		-	statutes is repealed and the following is substituted in lieu thereof
16		-	(Effective July 1, 2024, and applicable to taxable and income years commencing
17		-	on or after January 1, 2024):
18		-	(a) As used in this section, the following terms shall have the
19		-	following meanings unless the context clearly indicates another
20		-	meaning:
21		-	(1) "Department" means the Department of Economic and
22		-	Community Development;
23		-	(2) "Historic home" means a building that: (A) Will contain one-to-
24		-	four dwelling units of which at least one unit will be occupied as the
25		-	principal residence of the owner for not less than five years following
26		-	the completion of rehabilitation work, and (B) is (i) listed individually
27		-	on the National or State Register of Historic Places, or (ii) located in a
28		-	district listed on the National or State Register of Historic Places, and
29		-	has been certified by the department as contributing to the historic
30		-	character of such district; Substitute ~~House~~ Bill No. 5190
	17	+	Section 1. Section 10-416 of the 2024 supplement to the general 1
	18	+	statutes is repealed and the following is substituted in lieu thereof 2
	19	+	(Effective July 1, 2024, and applicable to taxable and income years commencing 3
	20	+	on or after January 1, 2024): 4
	21	+	(a) As used in this section, the following terms shall have the 5
	22	+	following meanings unless the context clearly indicates another 6
	23	+	meaning: 7
	24	+	(1) "Department" means the Department of Economic and 8
	25	+	Community Development; 9
	26	+	(2) "Historic home" means a building that: (A) Will contain one-to-10
	27	+	four dwelling units of which at least one unit will be occupied as the 11
	28	+	principal residence of the owner for not less than five years following 12
	29	+	the completion of rehabilitation work, and (B) is (i) listed individually 13
	30	+	on the National or State Register of Historic Places, or (ii) located in a 14
	31	+	district listed on the National or State Register of Historic Places, and 15
	32	+	has been certified by the department as contributing to the historic 16
	33	+	character of such district; 17 Substitute Bill No. 5190
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32		-	Public Act No. 24-109 2 of 6
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34		-	(3) "Nonprofit corporation" means a nonprofit corporation
35		-	incorporated pursuant to chapter 602 or any predecessor statutes
36		-	thereto, having as one of its purposes the construction, rehabilitation,
37		-	ownership or operation of housing and having articles of incorporation
38		-	approved by the Commissioner of Economic and Community
39		-	Development in accordance with regulations adopted pursuant to
40		-	section 8-79a or 8-84;
41		-	(4) "Owner" means (A) any taxpayer filing a state of Connecticut tax
42		-	return who possesses title to an historic home, or prospective title to an
43		-	historic home in the form of a purchase agreement or option to
44		-	purchase, or (B) a nonprofit corporation that possesses such title or
45		-	prospective title;
46		-	(5) "Qualified rehabilitation expenditures" means any costs incurred
47		-	for the physical construction involved in the rehabilitation of an historic
48		-	home, but excludes: (A) The owner's personal labor, (B) the cost of site
49		-	improvements, unless to provide building access to persons with
50		-	disabilities, (C) the cost of a new addition, except as may be required to
51		-	comply with any provision of the State Building Code or the Fire Safety
52		-	Code, (D) any cost associated with the rehabilitation of an outbuilding,
53		-	unless such building contributes to the historical significance of the
54		-	historic home, and (E) any nonconstruction cost such as architectural
55		-	fees, legal fees and financing fees;
56		-	(6) "Rehabilitation plan" means any construction plans and
57		-	specifications for the proposed rehabilitation of an historic home in
58		-	sufficient detail to enable the department to evaluate compliance with
59		-	the standards developed under the provisions of subsections (b), (c) and
60		-	(m) of this section; and
61		-	(7) "Occupancy period" means a period of five years during which
62		-	one or more owners occupy an historic home as such owner's or owners'
63		-	primary residence. The occupancy period begins on the date the tax Substitute House Bill No. 5190
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65		-	Public Act No. 24-109 3 of 6
	38	+	(3) "Nonprofit corporation" means a nonprofit corporation 18
	39	+	incorporated pursuant to chapter 602 or any predecessor statutes 19
	40	+	thereto, having as one of its purposes the construction, rehabilitation, 20
	41	+	ownership or operation of housing and having articles of incorporation 21
	42	+	approved by the Commissioner of Economic and Community 22
	43	+	Development in accordance with regulations adopted pursuant to 23
	44	+	section 8-79a or 8-84; 24
	45	+	(4) "Owner" means (A) any taxpayer filing a state of Connecticut tax 25
	46	+	return who possesses title to an historic home, or prospective title to an 26
	47	+	historic home in the form of a purchase agreement or option to 27
	48	+	purchase, or (B) a nonprofit corporation that possesses such title or 28
	49	+	prospective title; 29
	50	+	(5) "Qualified rehabilitation expenditures" means any costs incurred 30
	51	+	for the physical construction involved in the rehabilitation of an historic 31
	52	+	home, but excludes: (A) The owner's personal labor, (B) the cost of site 32
	53	+	improvements, unless to provide building access to persons with 33
	54	+	disabilities, (C) the cost of a new addition, except as may be required to 34
	55	+	comply with any provision of the State Building Code or the Fire Safety 35
	56	+	Code, (D) any cost associated with the rehabilitation of an outbuilding, 36
	57	+	unless such building contributes to the historical significance of the 37
	58	+	historic home, and (E) any nonconstruction cost such as architectural 38
	59	+	fees, legal fees and financing fees; 39
	60	+	(6) "Rehabilitation plan" means any construction plans and 40
	61	+	specifications for the proposed rehabilitation of an historic home in 41
	62	+	sufficient detail to enable the department to evaluate compliance with 42
	63	+	the standards developed under the provisions of subsections (b), (c) and 43
	64	+	(m) of this section; and 44
	65	+	(7) "Occupancy period" means a period of five years during which 45
	66	+	one or more owners occupy an historic home as such owner's or owners' 46
	67	+	primary residence. The occupancy period begins on the date the tax 47
	68	+	credit voucher is issued by the Department of Economic and 48
	69	+	Community Development. 49 Substitute Bill No. 5190
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67		-	credit voucher is issued by the Department of Economic and
68		-	Community Development.
69		-	(b) The Department of Economic and Community Development shall
70		-	administer a system of tax credit vouchers within the resources,
71		-	requirements and purposes of this section for owners rehabilitating
72		-	historic homes or taxpayers making contributions to qualified
73		-	rehabilitation expenditures. Any owner shall be eligible for a tax credit
74		-	voucher in an amount equal to thirty per cent of the qualified
75		-	rehabilitation expenditures.
76		-	(c) The department shall develop standards for the approval of
77		-	rehabilitation of historic homes for which a tax credit voucher is sought.
78		-	Such standards shall take into account whether the rehabilitation of an
79		-	historic home will preserve the historic character of the building.
80		-	(d) Prior to beginning any rehabilitation work on an historic home,
81		-	the owner shall submit a rehabilitation plan to the department for a
82		-	determination of whether such rehabilitation work meets the standards
83		-	developed under the provisions of subsections (b), (c) and (m) of this
84		-	section and shall also submit to the department an estimate of the
85		-	qualified rehabilitation expenditures.
86		-	(e) If the department certifies that the rehabilitation plan conforms to
87		-	the standards developed under the provisions of subsections (b), (c) and
88		-	(m) of this section, the department shall reserve for the benefit of the
89		-	owner an allocation for a tax credit equivalent to thirty per cent of the
90		-	projected qualified rehabilitation expenditures.
91		-	(f) Following the completion of rehabilitation of an historic home, the
92		-	owner shall notify the department that such rehabilitation has been
93		-	completed. The owner shall provide the department with
94		-	documentation of work performed on the historic home and shall certify
95		-	the cost incurred in rehabilitating the home. The department shall Substitute House Bill No. 5190
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97		-	~~Public Act No. 24-109~~ 4 of 6
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99		-	review such rehabilitation and verify its compliance with the
100		-	rehabilitation plan. Following such verification, the department shall
101		-	issue a tax credit voucher to either the owner rehabilitating the historic
102		-	home or to the taxpayer named by the owner as contributing to the
103		-	rehabilitation. The tax credit voucher shall be in an amount equivalent
104		-	to the lesser of (1) the tax credit reserved upon certification of the
105		-	rehabilitation plan under the provisions of subsection (e) of this section,
106		-	or (2) thirty per cent of the actual qualified rehabilitation expenditures.
107		-	In order to obtain a credit against any state tax due that is specified in
108		-	subsection (i) of this section, the holder of the tax credit voucher shall
109		-	file the voucher with the holder's state tax return.
110		-	(g) Before the department issues a tax credit voucher, the owner shall
111		-	deliver a signed statement to the department that provides that: (1) The
112		-	owner shall occupy the historic home as the owner's primary residence
113		-	during the occupancy period; (2) the owner shall convey the historic
114		-	home to a new owner who will occupy it as the new owner's primary
115		-	residence during the occupancy period; or (3) an encumbrance shall be
116		-	recorded, in favor of the local, state or federal government or other
117		-	funding source, that will require the owner or the owner's successors to
118		-	occupy the historic home as the primary residence of the owner or the
119		-	owner's successors for a period equal to or longer than the occupancy
120		-	period. A copy of any such encumbrance shall be attached to the signed
121		-	statement.
122		-	(h) The owner of an historic home shall not be eligible for a tax credit
123		-	voucher under subsections (b), (c) and (m) of this section, unless the
124		-	owner incurs qualified rehabilitation expenditures exceeding fifteen
125		-	thousand dollars.
126		-	(i) (1) The Commissioner of Revenue Services shall grant a tax credit:
127		-	(A) (i) For a taxpayer holding a tax credit voucher issued prior to
128		-	January 1, 2024, under subsections (d) to (h), inclusive, of this section, Substitute House Bill No. 5190
	74	+	(b) The Department of Economic and Community Development shall 50
	75	+	administer a system of tax credit vouchers within the resources, 51
	76	+	requirements and purposes of this section for owners rehabilitating 52
	77	+	historic homes or taxpayers making contributions to qualified 53
	78	+	rehabilitation expenditures. Any owner shall be eligible for a tax credit 54
	79	+	voucher in an amount equal to thirty per cent of the qualified 55
	80	+	rehabilitation expenditures. 56
	81	+	(c) The department shall develop standards for the approval of 57
	82	+	rehabilitation of historic homes for which a tax credit voucher is sought. 58
	83	+	Such standards shall take into account whether the rehabilitation of an 59
	84	+	historic home will preserve the historic character of the building. 60
	85	+	(d) Prior to beginning any rehabilitation work on an historic home, 61
	86	+	the owner shall submit a rehabilitation plan to the department for a 62
	87	+	determination of whether such rehabilitation work meets the standards 63
	88	+	developed under the provisions of subsections (b), (c) and (m) of this 64
	89	+	section and shall also submit to the department an estimate of the 65
	90	+	qualified rehabilitation expenditures. 66
	91	+	(e) If the department certifies that the rehabilitation plan conforms to 67
	92	+	the standards developed under the provisions of subsections (b), (c) and 68
	93	+	(m) of this section, the department shall reserve for the benefit of the 69
	94	+	owner an allocation for a tax credit equivalent to thirty per cent of the 70
	95	+	projected qualified rehabilitation expenditures. 71
	96	+	(f) Following the completion of rehabilitation of an historic home, the 72
	97	+	owner shall notify the department that such rehabilitation has been 73
	98	+	completed. The owner shall provide t he department with 74
	99	+	documentation of work performed on the historic home and shall certify 75
	100	+	the cost incurred in rehabilitating the home. The department shall 76
	101	+	review such rehabilitation and verify its compliance with the 77
	102	+	rehabilitation plan. Following such verification, the department shall 78
	103	+	issue a tax credit voucher to either the owner rehabilitating the historic 79
	104	+	home or to the taxpayer named by the owner as contributing to the 80
	105	+	rehabilitation. The tax credit voucher shall be in an amount equivalent 81 Substitute Bill No. 5190
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132		-	against any tax due under chapter 207, 208, 209, 210, 211 or 212 in the
133		-	amount specified in the tax credit voucher.
134		-	(ii) Any unused portion of such credit under this subparagraph may
135		-	be carried forward to any or all of the four income years following the
136		-	year in which the tax credit voucher is issued; and
137		-	(B) (i) For a taxpayer [described under subparagraph (A) of
138		-	subdivision (4) of subsection (a) of this section] holding a tax credit
139		-	voucher issued on or after January 1, 2024, under subsections (d) to (h),
140		-	inclusive, of this section, against [the] any tax due under chapter 207,
141		-	208, 208a, 209, 210, 211, 212 or 229 in the amount specified in the tax
142		-	credit voucher.
143		-	(ii) If a taxpayer described under subparagraph (A) of subdivision (4)
144		-	of subsection (a) of this section holding such tax credit voucher claims a
145		-	credit against the tax imposed under chapter 229 and the amount of the
146		-	tax credit voucher exceeds the taxpayer's liability for [the] such tax,
147		-	[imposed under chapter 229,] the Commissioner of Revenue Services
148		-	shall treat such excess as an overpayment and, except as provided under
149		-	section 12-739 or 12-742, shall refund the amount of such excess, without
150		-	interest, to the taxpayer. [; and]
151		-	[(C) (i) For an owner that is a nonprofit corporation holding a tax
152		-	credit voucher issued on or after January 1, 2024, under subsections (d)
153		-	to (h), inclusive, of this section, against the tax due under chapter 208a
154		-	in the amount specified in the tax credit voucher.]
155		-	[(ii) Any] (iii) If a taxpayer holding such tax credit voucher claims a
156		-	credit against any tax imposed under chapter 207, 208, 208a, 209, 210,
157		-	211 or 212, any unused portion of such credit under this subparagraph
158		-	may be carried forward to any or all of the four income years following
159		-	the year in which the tax credit voucher is issued.
160		-	(2) The Department of Economic and Community Development shall Substitute House Bill No. 5190
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162		-	Public Act No. 24-109 6 of 6
	110	+	to the lesser of (1) the tax credit reserved upon certification of the 82
	111	+	rehabilitation plan under the provisions of subsection (e) of this section, 83
	112	+	or (2) thirty per cent of the actual qualified rehabilitation expenditures. 84
	113	+	In order to obtain a credit against any state tax due that is specified in 85
	114	+	subsection (i) of this section, the holder of the tax credit voucher shall 86
	115	+	file the voucher with the holder's state tax return. 87
	116	+	(g) Before the department issues a tax credit voucher, the owner shall 88
	117	+	deliver a signed statement to the department that provides that: (1) The 89
	118	+	owner shall occupy the historic home as the owner's primary residence 90
	119	+	during the occupancy period; (2) the owner shall convey the historic 91
	120	+	home to a new owner who will occupy it as the new owner's primary 92
	121	+	residence during the occupancy period; or (3) an encumbrance shall be 93
	122	+	recorded, in favor of the local, state or federal government or other 94
	123	+	funding source, that will require the owner or the owner's successors to 95
	124	+	occupy the historic home as the primary residence of the owner or the 96
	125	+	owner's successors for a period equal to or longer than the occupancy 97
	126	+	period. A copy of any such encumbrance shall be attached to the signed 98
	127	+	statement. 99
	128	+	(h) The owner of an historic home shall not be eligible for a tax credit 100
	129	+	voucher under subsections (b), (c) and (m) of this section, unless the 101
	130	+	owner incurs qualified rehabilitation expenditures exceeding fifteen 102
	131	+	thousand dollars. 103
	132	+	(i) (1) The Commissioner of Revenue Services shall grant a tax credit: 104
	133	+	(A) (i) For a taxpayer holding a tax credit voucher issued prior to 105
	134	+	January 1, 2024, under subsections (d) to (h), inclusive, of this section, 106
	135	+	against any tax due under chapter 207, 208, 209, 210, 211 or 212 in the 107
	136	+	amount specified in the tax credit voucher. 108
	137	+	(ii) Any unused portion of such credit under this subparagraph may 109
	138	+	be carried forward to any or all of the four income years following the 110
	139	+	year in which the tax credit voucher is issued; and 111
	140	+	(B) (i) For a taxpayer [described under subparagraph (A) of 112 Substitute Bill No. 5190
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164		-	provide a copy of the voucher to the Commissioner of Revenue Services
165		-	upon the request of said commissioner.
166		-	(j) A credit allowed under this section shall not exceed thirty
167		-	thousand dollars per dwelling unit for an historic home, except that
168		-	such credit shall not exceed fifty thousand dollars per such dwelling
169		-	unit for an owner that is a nonprofit corporation.
170		-	(k) The tax credit granted under subsection (i) of this section shall be
171		-	taken in the same tax year in which the tax credit voucher is issued.
172		-	(l) The aggregate amount of all tax credits that may be reserved by
173		-	the Department of Economic and Community Development upon
174		-	certification of rehabilitation plans under subsections (b) to (d),
175		-	inclusive, of this section shall not exceed three million dollars in any one
176		-	fiscal year. On and after July 1, 2015, seventy per cent of the tax credits
177		-	reserved pursuant to this section shall be for owners rehabilitating
178		-	historic homes that are located in a regional center as designated in the
179		-	state plan of conservation and development adopted by the General
180		-	Assembly pursuant to section 16a-30 or taxpayers making contributions
181		-	to qualified rehabilitation expenditures on historic homes that are
182		-	located in a regional center as designated in the state plan of
183		-	conservation and development adopted by the General Assembly
184		-	pursuant to section 16a-30.
185		-	(m) The Department of Economic and Community Development
186		-	may, in consultation with the Commissioner of Revenue Services, adopt
187		-	regulations in accordance with chapter 54 to carry out the purposes of
188		-	this section.
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	145	+	subdivision (4) of subsection (a) of this section] holding a tax credit 113
	146	+	voucher issued on or after January 1, 2024, under subsections (d) to (h), 114
	147	+	inclusive, of this section, against [the] any tax due under chapter 207, 115
	148	+	208, 208a, 209, 210, 211, 212 or 229 in the amount specified in the tax 116
	149	+	credit voucher. 117
	150	+	(ii) If a taxpayer described under subparagraph (A) of subdivision (4) 118
	151	+	of subsection (a) of this section holding such tax credit voucher claims a 119
	152	+	credit against the tax imposed under chapter 229 and the amount of the 120
	153	+	tax credit voucher exceeds the taxpayer's liability for [the] such tax, 121
	154	+	[imposed under chapter 229,] the Commissioner of Revenue Services 122
	155	+	shall treat such excess as an overpayment and, except as provided under 123
	156	+	section 12-739 or 12-742, shall refund the amount of such excess, without 124
	157	+	interest, to the taxpayer. [; and] 125
	158	+	[(C) (i) For an owner that is a nonprofit corporation holding a tax 126
	159	+	credit voucher issued on or after January 1, 2024, under subsections (d) 127
	160	+	to (h), inclusive, of this section, against the tax due under chapter 208a 128
	161	+	in the amount specified in the tax credit voucher.] 129
	162	+	[(ii) Any] (iii) If a taxpayer holding such tax credit voucher claims a 130
	163	+	credit against any tax imposed under chapter 207, 208, 208a, 209, 210, 131
	164	+	211 or 212, any unused portion of such credit under this subparagraph 132
	165	+	may be carried forward to any or all of the four income years following 133
	166	+	the year in which the tax credit voucher is issued. 134
	167	+	(2) The Department of Economic and Community Development shall 135
	168	+	provide a copy of the voucher to the Commissioner of Revenue Services 136
	169	+	upon the request of said commissioner. 137
	170	+	(j) A credit allowed under this section shall not exceed thirty 138
	171	+	thousand dollars per dwelling unit for an historic home, except that 139
	172	+	such credit shall not exceed fifty thousand dollars per such dwelling 140
	173	+	unit for an owner that is a nonprofit corporation. 141
	174	+	(k) The tax credit granted under subsection (i) of this section shall be 142
	175	+	taken in the same tax year in which the tax credit voucher is issued. 143 Substitute Bill No. 5190
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	180	+	(l) The aggregate amount of all tax credits that may be reserved by 144
	181	+	the Department of Economic and Community Development upon 145
	182	+	certification of rehabilitation plans under subsections (b) to (d), 146
	183	+	inclusive, of this section shall not exceed three million dollars in any one 147
	184	+	fiscal year. On and after July 1, 2015, seventy per cent of the tax credits 148
	185	+	reserved pursuant to this section shall be for owners rehabilitating 149
	186	+	historic homes that are located in a regional center as designated in the 150
	187	+	state plan of conservation and development adopted by the General 151
	188	+	Assembly pursuant to section 16a-30 or taxpayers making contributions 152
	189	+	to qualified rehabilitation expenditures on historic homes that are 153
	190	+	located in a regional center as designated in the state plan of 154
	191	+	conservation and development adopted by the General Assembly 155
	192	+	pursuant to section 16a-30. 156
	193	+	(m) The Department of Economic and Community Development 157
	194	+	may, in consultation with the Commissioner of Revenue Services, adopt 158
	195	+	regulations in accordance with chapter 54 to carry out the purposes of 159
	196	+	this section. 160
	197	+	This act shall take effect as follows and shall amend the following
	198	+	sections:
	199	+
	200	+	Section 1 July 1, 2024, and
	201	+	applicable to taxable and
	202	+	income years commencing
	203	+	on or after January 1, 2024
	204	+	10-416
	205	+
	206	+	CE Joint Favorable Subst.
189	207