Prohibits the tax credit for the rehabilitation of historic structures from being carried forward and used against subsequent tax liability or transferred to other taxpayers
Impact
The immediate impact of HB 433 is a reduction in the flexibility previously offered to taxpayers who rehabilitate historic buildings. Under prior law, unused tax credits could be carried forward for up to five years, which allowed for tax planning and potentially incentivized more extensive rehabilitation projects. By removing this carryforward capability and the option to sell tax credits, the law aims to tighten fiscal management on tax credits but may deter potential investors who relied on this flexibility for financial viability in their projects.
Summary
House Bill 433 introduces significant changes to the tax credit system for the rehabilitation of historic structures in Louisiana. Specifically, the bill prohibits any tax credits earned for such rehabilitation after July 1, 2015, from being carried forward to offset future tax liabilities or from being sold to other taxpayers. This legislation aims to tighten the controls surrounding the financial incentives provided to those investing in historic preservation, thereby simplifying the tax credit framework.
Sentiment
The sentiment surrounding the bill appears mixed among lawmakers and stakeholders in the community. Supporters argue that limiting these credits promotes better accountability and focuses on genuine development efforts without facilitating speculative behaviors around tax credits. Conversely, opponents are concerned that these changes will discourage investment in historic properties, reduce economic development opportunities, and ultimately impede the revitalization of important cultural and historical assets within communities.
Contention
A notable point of contention regarding HB 433 centers on the balance between fiscal responsibility and promoting economic growth through historic preservation. Advocates for the bill emphasize the need to curb potential misuse of tax credits, while detractors warn that such measures can lead to adverse effects on local economies that benefit from revitalizing historical sites. This debate highlights the challenges faced by policymakers in encouraging property rehabilitation while simultaneously safeguarding state resources.
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 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)