Provides relative to allowable taxes for the purposes of the historic rehabilitation tax credit. (8/1/21) (OR SEE FISC NOTE GF RV)
Impact
The proposed adjustments to the historic rehabilitation tax credit aim to incentivize the improvement and preservation of historic structures located in downtown developments and cultural districts. By allowing the credit against more types of taxes, the bill is expected to encourage private investment in these areas, which can lead to revitalization projects that contribute to economic growth and community development. Furthermore, this enhances the financial viability of restoring historic buildings, which may otherwise face challenges in garnering sufficient funding.
Summary
Senate Bill 166 seeks to enhance the existing historic rehabilitation tax credit by expanding the types of taxes against which the credit can be claimed. Previously, the credit was primarily applicable to income and corporation franchise taxes; this bill introduces the state premium tax as an additional allowable tax. This means that taxpayers who invest in the rehabilitation of historic structures in specified areas can now also apply the credit to their state premium tax liabilities, potentially maximizing the financial benefits of such investments.
Sentiment
The sentiment around SB 166 appears to be largely positive among proponents advocating for the preservation of historical sites and promoting economic development through revitalization. Supporters argue that increasing the appeal of the tax credit will lead to more robust investments in infrastructure and preserve the cultural heritage of communities. However, specific stakeholders may express concern regarding the fiscal implications of expanding tax credits, which can affect state revenue, balancing benefits against the potential economic costs.
Contention
One of the main points of contention surrounding SB 166 is the potential financial implications of expanding the tax credit framework. Opponents may raise concerns regarding the effectiveness of tax credits in achieving desired outcomes versus their impact on state tax revenue. It is crucial to assess whether the increase in renovations and developments will sufficiently offset any lost tax revenue and to ensure that the investment actually translates into tangible community benefits. Additionally, ensuring that the new definitions and stipulations regarding the state premium tax are clearly understood and administrable is essential for the bill's successful implementation.
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 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)
Establishes a tax credit for eligible expenses incurred in the rehabilitation of historic structures included on the National Register of Historic Places (Item #19) (RE DECREASE GF RV See Note)