Second assignment of the historic structure rehabilitation credit permission
Impact
The bill is expected to make significant changes to state laws regarding taxation related to historic structure rehabilitation. By facilitating a second assignment of the credit, it allows developers more flexibility in transferring these credits to other taxpayers. This flexibility may open doors for projects that might have previously been stalled due to lack of funding or credit capacity. The amendments aim to bolster investment in historical preservation, which can contribute to local economies and maintain cultural heritage.
Summary
SF2115 is a legislative proposal in Minnesota aimed at enhancing the historic structure rehabilitation credit program by allowing for a second assignment of the credit. The bill modifies existing requirements under Minnesota Statutes 2024, particularly section 290.0681, to streamline the process for developers seeking tax credits for rehabilitating historic structures. This includes changing procedures for applying for credits and allocating grants, thus encouraging more participation in historic preservation efforts across the state.
Contention
Notable points of contention surrounding SF2115 revolve around fiscal implications and the mechanisms of application for credits. Some critics might argue that allowing multiple assignments may lead to complexities that could burden the state with increased administrative oversight. Furthermore, while proponents emphasize the potential for economic growth through preservation, opponents may raise concerns about the efficacy of tax credits compared to direct funding or incentives for similar projects.
Similar To
Income and corporate franchise taxes; second assignment of historic structure rehabilitation credit allowed, and requirements for issuing allocation certificates modified.
Income tax provisions modified, historic structure rehabilitation credit sunset repealed and expired provisions revived and reenacted, and extension allowed for projects to apply for credit.
Refundable income tax credit proposed for conversion of underutilized buildings, grants in lieu of credit allowed, sunset for credit proposed, and reports required.