Relating to the determination of eligible costs and expenses for purposes of the franchise tax credit for the rehabilitation of historic structures.
Impact
This legislation, which takes effect on January 1, 2016, is expected to have a substantial impact on the preservation of historic buildings across Texas. By broadening the scope of eligible costs, HB 3230 aims to incentivize property owners and developers to engage in restoration projects that benefit historical structures. This financial support has the potential to stimulate economic development, enhance cultural heritage, and attract tourism by maintaining the historical character of communities.
Summary
House Bill 3230 pertains to the franchise tax credit specifically designed for the rehabilitation of historic structures within Texas. The bill amends Section 171.901 of the Tax Code to clarify the definition of 'eligible costs and expenses', aligning them with the guidelines previously established in the Internal Revenue Code while excluding certain provisions applicable to tax-exempt entities. The bill serves to ensure that the costs incurred by these entities while rehabilitating historic structures can qualify for tax credits, thereby promoting the preservation efforts in local communities.
Sentiment
The sentiment around HB 3230 appears to be generally positive among legislators and stakeholders in the historic preservation community. Supporters emphasize the importance of incentivizing the rehabilitation of historic sites, viewing the bill as a means to preserve Texas's rich heritage while simultaneously providing financial relief to property owners. The discussions suggest a consensus on the value of maintaining historical structures and the shared responsibility of fostering cultural preservation.
Contention
While the bill has garnered support, it has also raised concerns regarding the cost implications for the state treasury. Critics may question the impact of increased tax credits on state revenues and whether such financial measures effectively balance preservation goals with fiscal responsibility. However, the overwhelming voting record of 139 in favor to just 1 against indicates strong legislative support, mitigating significant contention at this stage in the process.