Extends the sunset of the tax credit for the rehabilitation of historic structures for nonresidential property and provides eligibility requirements (EN -$9,000,000 GF RV See Note)
Impact
If enacted, HB 387 will have an impact on property owners and developers who rely on state tax credits to fund the rehabilitation of historic structures. The changes proposed in this bill could lead to a decrease in the overall financial support available for such projects, as fewer funds will be reimbursed through tax credits post-2018. However, by extending the sunset, it could provide a measure of stability for ongoing projects that benefit from these incentives. The adjustments to eligibility and administrative protocols reflect a move towards more efficient management of the tax credits, which proponents argue will lead to improved utilization of state resources.
Summary
House Bill 387 aims to amend existing tax credit provisions for the rehabilitation of historic structures in Louisiana. The bill reduces the tax credit amount from 25% to 20% for rehabilitation expenses incurred on properties placed in service after January 1, 2018, while maintaining the higher percentage for costs incurred before that date. This reduction in the credit reflects an intention to streamline the financial incentives associated with the preservation of nonresidential historic properties, which are critical to Louisiana's cultural and economic landscape. Additionally, the bill introduces an administrative fee and extends the sunset of the tax credit, ensuring that these incentives continue for an additional period.
Sentiment
The sentiment surrounding HB 387 appears to be largely positive among stakeholders concerned with historic preservation, as it continues to promote the rehabilitation of important cultural sites. Supporters of the bill advocate for its role in sustaining Louisiana’s unique architectural heritage while acknowledging the need for fiscal reform in tax credit programs. However, there might be apprehension regarding the reduction in the percentage of eligible credit, which could dissuade some potential investors or limit the scope of rehabilitation projects, indicating a mixed reaction within certain sectors.
Contention
A notable point of contention surrounding HB 387 is the potential need for balancing fiscal responsibility with the need to preserve Louisiana's historic structures. Critics may argue that reducing the tax credit dilutes the incentive for owners to invest in substantial rehabilitations, which could lead to further deterioration of historical sites. On the other hand, supporters might highlight the importance of ensuring that tax credits are effectively managed and utilized, advocating that the bill retains the critical provisions needed for maintaining the state's historical assets while promoting sustainable financial practices.
Extends the sunset of the tax credit for rehabilitation of historic structures to January 1, 2026, and limits the maximum amount of credits awarded in a calendar year (RE1 DECREASE GF RV See Note)
Provides relative to the application fee for projects applying for the rehabilitation of historic structures tax credit applicable to nonresidential property (EN +$552,000 SG RV See Note)
Extends the tax credit for the rehabilitation of historic structures and provides for the applicability of such credit. (gov sig) (EG DECREASE GF RV See Note)
Extends the date for eligible expenses to qualify for the tax credit for the rehabilitation of historic structures and extends the effectiveness of the credit (Item #19) (EN SEE FISC NOTE GF RV See Note)
Extends applicability of the tax credit for the rehabilitation of certain historic structures and extends the tax credit to rehabilitated structures located in a federal designated HUBZone (OR DECREASE GF RV See Note)