Urges and requests that any proclamation convening an extraordinary session of the legislature in 2020 include an extension of effectiveness and changes to eligibility requirements of the rehabilitation of historic structures tax credit
Impact
HCR87 seeks to maintain and enhance the rehabilitation of historic structures tax credit, which has played a critical role in revitalizing blighted areas and encouraging investments. This tax credit has not only supported the preservation of historic buildings but has also been an effective tool for economic recovery following natural disasters and recessions. Studies indicate that for every dollar spent in tax credits, there is significant economic activity generated, showcasing its broad impact on jobs and local economies.
Summary
House Concurrent Resolution 87 (HCR87) urges the Louisiana legislature to extend the effectiveness of the rehabilitation of historic structures tax credit incentive. This resolution is particularly motivated by the economic challenges faced due to the COVID-19 pandemic, which has impacted many businesses in the hospitality sector and created halts in ongoing historic rehabilitation projects. It emphasizes the need for continued investments in redeveloping historic sites in cultural districts to spur economic growth and revitalize communities through the preservation of their historical structures.
Sentiment
The sentiment surrounding HCR87 appears to be largely supportive among legislators and advocates for historic preservation. They view the rehabilitation tax credit as a vital incentive that fosters private-sector investment and enhances the character of Louisiana’s communities. However, the resolution has also surfaced discussions regarding its long-term effectiveness and eligibility requirements, which could lead to further legislative discussions or modifications to the program.
Contention
While the resolution itself does not propose direct changes to the existing laws, it underscores the importance of legislative action to continue supporting the historic rehabilitation efforts. Notably, the bill calls for improvements to the eligibility requirements to potentially widen the scope of the credit, including encouraging investments in opportunity zones. This raises questions about how best to balance the need for local economic support with the potential for overextending resources, making it an area for ongoing debate.
Urges and requests that any proclamation convening an extraordinary session of the legislature in 2020 include changes to eligibility requirements to participate in the Enterprise Zone incentive
Urges and requests that any proclamation convening an extraordinary session of the legislature in 2020 include changes to the carryback provisions of the corporate income tax deduction for net operating losses
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)
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)
Creates the Task Force on Structural Changes in Budget and Tax Policy to continue the budget and tax reform evaluations begun in the 2016 First Extraordinary Session and urges and requests the governor to support and implement initiatives for structural change introduced in upcoming sessions that will lead to savings through more efficient and effective state operations
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)
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)