By: Eiland H.B. No. 4491
A BILL TO BE ENTITLED
AN ACT
relating to a tax credit for eligible costs and expenses incurred
during the rehabilitation of a historic structure located in a
severely damaged or flooded census tract.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter [__] to read as follows:
SUBCHAPTER [__]. CREDIT FOR REHABILITATION OF A HISTORIC
STRUCTURE
Sec. 171.[__]. DEFINITIONS. In this subchapter:
(1) "Commission" means the Texas Historical
Commission.
(2) "Eligible costs and expenses" means qualified
rehabilitation expenditures as defined in Section 47(c)(2)(A) of
the Internal Revenue Code of 1986, as amended, except that
"substantially rehabilitated" shall mean that the qualified
rehabilitation expenditures must exceed five thousand dollars.
(3) "FEMA" means the United State Federal Emergency
Management Agency.
(4) "Severely damaged or flooded census tract" means
any census tract that has been flooded or damaged, as determined by
FEMA or the Governor's Division of Emergency Management within the
past four years.
Sec. 171.[__]. CREDIT. (a) There shall be allowed a credit
against the tax imposed under this Chapter 171, Franchise Tax, in an
amount equal to twenty-five percent (25%) of the eligible costs and
expenses incurred during the rehabilitation of a historic
structure.
(b) The credit is earned by the entity that owns the
historic structure in the year in which the property attributable
to the eligible costs and expenses is placed in service.
(c) In order to qualify for the credit, the historic
structure must be located in a severely damaged or flooded census
tract and either listed on the National Register of Historic Places
or be certified by the commission as contributing to the historical
significance of the census tract or the state.